A revolving credit, what is it?
The revolving credit is known by several names: permanent loan, reconstitutable credit. However, only one name is authorized today: the revolving credit.
This is a reserve of money made available to a customer by a credit institution. This reserve of money can be used, once or several times, partially or completely, at any time and without proof. When the client repays his loan, the credit is reconstituted and can be used again.
- Learn more about revolving credit
How revolving credit works
As long as the customer does not use his cash pool, the revolving credit costs nothing (except perhaps annual credit card fees). If the reserve is used, interest is calculated on the amount borrowed.
The refund is more or less fast, depending on the choice made by the customer at the time of the subscription of the contract or at the time of the purchase.
- low repayment: the monthly payment is moderate and the repayment period is longer;
- average repayment: the monthly payment is balanced for a balance between repayment period and amount;
- high repayment: the monthly payment is high to accelerate the repayment of the credit.
Whatever the level of reimbursement chosen, the repayment term is governed by two legal limits:
- if the credit amount used is less than or equal to € 3,000, the refund must be made in no more than three years (36 months)
- if the amount of credit used is more than € 3,000, the refund must be made in a maximum of five years (60 months).
How to use the revolving credit reserve?
According to the credit agencies, there are several possibilities for using its revolving credit:
- request a transfer to your bank account;
- use the credit card associated with the loan to pay for purchases;
- use the credit card associated with the loan to withdraw cash from a distributor.
The provision of a special credit card, attached to the cash reserve, has become very common. It will be accepted at partner agencies of the credit agency and sometimes even in the network of ATMs.
- All about the use of the revolving credit reserve
Speed of revolving credit
If urgent money is needed, revolving credit is the most appropriate financing solution to get money quickly.
The procedure to subscribe can be done online in a very simple way. And once the file accepted (and not withdrawn), you can have access to your reserve of money within 48 hours!
- Learn more about the speed of revolving credit
Single loan or revolving credit?
You want to take out a loan but you do not know which one to choose between Single loan and revolving loan? These two financing solutions have points of similarities, but also differences. Discover our advice to make your choice according to your needs and your expectations.
- Our tips for choosing between Single loan or revolving credit
Revolving credit with co-borrower
Do you know that it is possible to borrow money with one of your relatives? Find out who can be a co-borrower, and what are the advantages and disadvantages of this type of credit.