It can happen, an unexpected purchase or your car breaks down and it makes your end of the month difficult. To avoid putting yourself in the red, many solutions exist such as revolving credit. This flexible consumer credit gives you a little boost. Discover its specificities and all our advice before subscribing.
Revolving credit: how does it work?
Revolving credit (also called revolving credit), is a consumer credit that allows the borrower to have a sum of money that he can use in whole or in part. The money repaid or that remains available, forms an available reserve, which the borrower can spend again. It is this specificity that makes revolving credit so special. In addition, this credit makes it possible to obtain a credit card that allows the borrower to withdraw money or pay directly for purchases.
Advantage and inconvenient
The main advantage of this revolving credit is that it is very flexible, and that it makes it easy and quick to obtain a sum of money for troubleshooting.
Regarding the disadvantages, revolving credit has very high and revisable interest rates. The ideal when subscribing is to repay the credit quickly, which then becomes advantageous. Another thing to watch out for is that credit, as the name suggests, is revolving. If you take out this type of loan for a specific purpose, do not spend it on anything else, otherwise you may always be dependent on this loan.
How to choose ?
Many players (banks, credit organizations, supermarkets, etc.) offer this type of credit. It is therefore difficult to be able to clearly compare its different offers. Online comparators offer to help you by comparing the different offers for you depending on the amount and duration of the credit.
If you want to compare yourself, here are the different comparison criteria:
The APR rate: the interest rate is one of the most useful criteria for comparing offers with each other. However, keep in mind that its rates can be revised upwards or downwards.
The amount of the monthly payments: this criterion is essential for the calculation of the interest on your loan. As said before, it is ideal to repay your loan quickly. The more time you take, the more it will cost you. You must therefore borrow what you will be able to repay.