What is a revolving credit? – You must know this
What is a revolving credit. Despite being one of the most popular loans in the Netherlands, many people lack the exact knowledge about this form of borrowing money. The revolving credit has become popular in a short time due to a number of advantages.
I will try what a revolving credit is, what it can be used for, the amount from which it is available and the conditions that you must meet to qualify for this credit. It is also a possibility to borrow money quickly if you do this online. If the correct papers are delivered quickly, the requested amount can be made available to you within 2 working days.
What is a revolving credit
Let’s start with the definition: A revolving credit is a flexible way of borrowing money. The interest and the term are flexible and once repaid amounts can be withdrawn again without having to take out a new credit.
How much can you borrow
It depends a bit on the provider, but in general you can get a revolving credit from 2,500 euros. The maximum loan amount varies greatly per provider, but is around 100,000 euros. However, various statistics show that the amounts of 5,000 euros and 10,000 euros are the most in demand. This is due to the fact that the amounts are not too high and the monthly repayment increases accordingly. With a revolving credit of 10,000 euros you can get along pretty well and if it later turns out that it is not enough then this amount can be increased. Of course, you must have sufficient income to increase your loan amount so that you can meet your obligations without any problems.
As mentioned above, the revolving credit has a number of advantages which has ensured that this form of credit has become popular in the Netherlands. I will list them point by point:
1. Flexible duration.
2. Amounts withdrawn can be borrowed again.
3. You only pay interest on amounts that you withdraw.
4. Repay without additional costs.
5. You do not have to withdraw the entire amount in one go.
Cons of revolving credit
We can be brief about the disadvantages, because there are not that many. The only drawback is that interest rates are flexible and can therefore not only fall, but also rise. With an increase you will immediately notice this in your monthly payments. Another disadvantage is that the interest is never deductible from the tax, even when it is used for home improvement, this in contrast to the personal loan where the interest is still deductible under certain conditions.