Revolving credit – take out a loan. Everything you need to know

Revolving credit – take out a loan. Everything you need to know

Do you want to take out a revolving credit? Or do you just want to know more about it? The revolving credit is one of the most, if not the most flexible, forms of borrowing money. With a revolving credit you borrow a predetermined amount, also called the credit limit. You may withdraw up to this limit and also make repayments. In addition, this limit also determines your monthly installment for most forms of the revolving credit. The most frequently chosen monthly installments are 1% of the credit limit, 1.5% of the credit limit, or 2% of the credit limit. Your monthly payment will then include interest and repayment. With this form of taking out a loan there are therefore many options.
The revolving credit is still the most popular form of borrowing money. This is partly because there are many variants of this form of credit. A red balance on the payment account, or credit card, is also regarded as a revolving credit.  

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For whom is a revolving credit suitable?

For whom is a revolving credit suitable?

This form of a loan is actually suitable for anyone who needs a flexible loan. If you compare this form of borrowing money with a borrowing form such as a personal loan, you can leave amounts in deposit with this form, you can make withdrawals from your credit again, and you can make extra deposits without penalty. If you need this, this can be a particularly good form of borrowing money. In addition to the flexibility of being able to repay the loan early, the revolving credit has another advantage. With almost all providers, the interest is much lower than with a personal loan

Where can you take out a cheap revolving credit

Where can you take out a cheap revolving credit

As stated earlier, there are different providers. In the case of a revolving credit, you are generally the most advantageous with professional credit brokers and direct writers. The differences between these two parties are very small, only a few tenths. You can also borrow this form of money from your own bank, where your current account runs. You must, however, bear in mind that the interest there may generally be considerably higher.

Advantages of a revolving credit

To help you make a good choice, briefly review the benefits of this form of credit:

  • A revolving credit usually has a lower interest rate than a personal loan
  • You may make additional repayments without penalty
  • You can make withdrawals from your credit, you always have money in hand

Enough seems to us to opt for this form.

Disadvantages of a revolving credit

In addition to advantages, this form of borrowing money naturally also has disadvantages. We also list these for you:

  • Variable interest, the interest can rise.
  • Temptation of readmissions can be very large, so the loan is not repaid

The latter may require some explanation. But if you continue to make withdrawals from your loan, you will not repay it, and you will continue to pay a relatively large amount of interest on your credit.

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