Borrowing money in the form of a revolving credit is still preferred by a large proportion of the Dutch. Taking out a revolving credit can be a good option if you want to be flexible with your loan. If you want to be able to repay without penalty, and if you want to be able to make withdrawals from your credit. Taking out a revolving credit is a good choice if it is difficult to determine in advance how much you need. Or if you just want to keep money in hand.
Flexible form of borrowing money
As you can see from the above, a revolving credit is an extremely flexible form of borrowing money. Taking out a revolving credit makes it possible to always keep money behind your hand up to your credit limit.
As long as you have not reached your credit limit and you have no arrears on your loan, you can continue to withdraw from your loan for a long time.
The risk of always taking out your loan is that you will continue to pay your loan for too long. Always ensure that you continue to make repayments on your loan.
Points of attention when taking out a revolving credit
If you want to take out a revolving credit, there are a number of things that you can take into account. Naturally, a revolving credit must meet your wishes. The credit brings what you want and what you need.
To ensure that you do not pay too much for your revolving credit, it is important to pay particular attention to the interest rate. The lower the interest that you can charge your client, the better it is for you in the end. After all, you then have to pay less in interest.
If you apply for a revolving credit with Loan competitor, we will immediately start working for you to ensure that you can take out a revolving credit at a low interest rate and on favorable terms.
Take out a risk with a revolving credit
When taking out a revolving credit, there is really only one important risk. That is the risk of re-withdrawing from your loan. A re-draw is the re-drawing from your loan. If you do this regularly, you do not pay much off your loan and there is a risk that you will eventually pay too much interest.
Take out costs of a revolving credit
Of course you want to know what it costs to take out a revolving credit if you choose the revolving credit.
The good thing is that no costs are charged for taking out a revolving credit. This is also prohibited by law. The Consumer Credit Act stipulates that it is forbidden to charge costs when concluding or broking a loan, and therefore also a revolving credit. Loan competitor will therefore never do this.
If there is a provider that charges costs for a revolving credit, you can report this to the regulator, the FMA (Financial Markets Authority), they will then record the data and start an investigation if there is reason to do so.