The revolving credit is a loan that is undoubtedly one of the most popular consumer loans in the Netherlands. You could see the revolving credit as a credit that offers the possibility to have the loan sum run through. A lot of freedom is offered to re-take repaid credit and to repay an outstanding amount early.
Compare revolving credit
The revolving credit has several variants (including the interest credit, savings credit and WOZ credit). All these loan forms can be taken out for extra financial space. If you want to borrow to keep money in hand, there is a good chance that one of these loans will meet your wishes.
You must take the credit limit into account when you take out a revolving credit. This limit represents the maximum amount that you can borrow. It is usually fairly easy to increase it in the meantime. The advantage of borrowing money with a credit limit is that you are not obliged to do anything. You decide yourself when, how much and for what you do a credit draw.
Repay revolving credit
In consultation with the lender, an amount is agreed that you must repay on a monthly basis. In most cases, this is a repayment percentage. For example, you would have to repay 2% of the credit limit or the outstanding balance. Repayment is also permitted with a revolving credit if this is not done according to schedule. You do not pay a fine on this. If you were to repay early, the term of the loan would be shortened. However, the term is extended when more money is withdrawn.
Continuous credit variable interest
Although the interest rate of the personal loan did not change during the term, the revolving credit has a variable interest rate. This interest rates move with the market interest rate. Your monthly charges consist of interest and repayment. Should interest rates fall, you would repay more each month and the term would decrease faster than expected. It would be less pleasant if interest rates would rise, but you will pay fixed monthly charges.
Benefit from revolving credit
- You agree a credit limit (the maximum loan) with your lender;
- You have the option of taking back repaid credit;
- You only have to pay interest on the credit that you take out;
- Fine-free repayment is permitted;
- The revolving credit has a variable interest rate. This may cause the loan interest rate to fall;
- It is quite possible that the credit form is offered with a free death cover.
- Revolving credit without BKR testing is possible.