In contrast to personal loans and related forms of loan, revolving loans are loans that are very flexible and that allow you to withdraw the money that you have repaid. Moreover, the loan amounts that you may take out again and again fall under the so-called ‘interest-bearing’ loan. In the information below you will find more information about the revolving credit and its significance.
For a specific, larger purchase, it is wise to take out a personal loan instead of a revolving credit. So you know in advance exactly what the purchase will cost you in total. Do you, however, want to have access to money for a long period of time? Then you take out a revolving credit. You can withdraw money when you need it. For example, you can handle unexpected and / or incidental expenses. An important characteristic of a revolving credit is that you only pay interest on the amount that you withdraw. For example, is the credit limit 25,000 euros and do you withdraw 5,000 euros from it? Then you only pay on the amount of 5,000 euros interest. Everything you pay off may be included again.
You can cancel a revolving credit but this is not necessary
A revolving credit has in principle no (fixed) term. You can make an appointment with yourself to terminate the contract as soon as all the money has been repaid. If only for the protection of yourself. When you pay off the outstanding amounts, you also pay the interest immediately. Do you always want to have the possibility to withdraw money? Do you like it if there is some financial leeway? Then of course you can just keep the revolving credit. Please note that there is an age limit for most banks. For example, you often have to have paid off a revolving credit around the retirement age.
Characteristics revolving credit
- The interest is variable. This means that it can rise or fall during the term
- You determine in advance the maximum loan amount that you can withdraw
- You can always withdraw repaid amounts
- You do not have to cancel a revolving credit
- Fine-free repayment is possible
Pay less interest
You pay less interest when you repay the amounts as quickly as possible. Of course you can also compare the revolving credit based on interest with different providers. Although a low interest rate at a certain provider does not of course say anything about the level of interest in the future. So don’t just focus on interest rates. The employees of Fet Credit Financier are happy to help you find a revolving credit on the best terms and naturally a nice low interest rate!