Do you have a liquidity problem in your household? You cannot manage to face all the charges without avoiding the agios and the various overdraft penalties? Apply for revolving credit. This is an offer to discover with banks, and which proves to be a good solution for households in financial difficulty. But before concluding any contract, should you still know what type of loan accompanied by a revolving credit card, and how it works?
What is revolving credit?
A revolving credit is a financing that will allow the borrower to have a reserve of money in which he can draw in order to be able to face unforeseen expenses such as a consumer good that has just broken down or a purchase exceptional. To repay your revolving credit you will only have to repay as you go so that the money reserve is replenished. This type of financing is flexible and easy to use, you will only pay interest on the part of the reserve you use, if you do not use your reserve then you will not be charged any fees.
A revolving credit contract will be concluded for a period of 1 year and will be renewed by the organization every year by tacit agreement.
Revolving credit is also known as revolving, permanent or revolving loan. It is a small loan, and this, because of the very low limit of its ceiling. Indeed, this kind of loan only puts at your disposal 500 to 6,000 USD of unlocked funds that you can use with a revolving credit card.
If you borrow less than 3000 USD you will have to repay the amount over a period of 3 years and for an amount greater than 3000 USD the repayment period will be capped at 5 years. When you request your credit from a bank, a credit organization or a large brand, if the amount is greater than 1000 USD, the latter will be obliged to offer you in parallel an offer of amortizable loan so that you can choose in any case, the most advantageous financing offer for you.
Another important thing to know, your bank advisor will offer you several repayment speeds when you are going to contract a revolving credit offer ranging from fast, medium and slow speed. To make the most savings possible on your loan, it is recommended to choose the shortest possible repayment speed so the total cost of the credit will be lower than if you commit to a longer term.
How does a revolving credit card work?
Compared to other banking services, revolving credit is different, whether in repayment methods or in the release of funds, moreover it is accompanied by a revolving credit card. If the other loans are released at once, the revolving credit is regenerated every month up to the ceiling agreed with the bank.
Refunds vary among others. We are not talking about variable rates here, but with monthly payments which are set according to your monthly expenses.
For example, if you have concluded a revolving credit of 4,000 USD with the bank. You spent 1,500 USD during this month. It will only be necessary to reimburse these 1,500 USD for the credit to return to 4,000 USD. This system is at the origin of the name “revolving credit”.
Use your revolving credit card
Travel, daily expenses, bills, weddings or other projects can be financed by revolving credit. The amount will be available every month on your account. To use it, there is nothing simpler. Just use your revolving credit card.
The revolving credit card is a withdrawal card that adapts to all bank ATMs. You no longer have to queue for hours to get a flying check. Just choose an ATM that will be able to give you the amount you need.
The revolving credit card online is also a way to make your shopping easier. You can pay in stores and health centers with this kind of product. You can even pay for your fuel. Providers have a special device for withdrawal of this kind.
In short, the revolving credit card is nothing other than your usual withdrawal card. Insofar as the amount will be released to your account, the revolving credit card that comes with it when it is opened will be more than enough for withdrawals and uses. You can renew it with your bank, file an objection in the event of loss and replace it in the event of destruction. Just make an appointment and that’s it!
Be careful however, the money you use with this card and that of your reserve, it is therefore an advance from the bank that will have to be reimbursed, so be sure to use it only in very specific cases and unforeseen expenses for avoid all risks of over-indebtedness.