What is Revolving Credit?
With a Revolving Credit you can flexibly withdraw and repay money. Handy if you don't know exactly how much money you need and how often you want to withdraw money. You may have the tendency to borrow more and more money because of this. Then it is best to save or look for one first Personal loan .
You can only withdraw free money within the credit limit of your Revolving Credit in the first 36 months. You do not have to withdraw the amount in one go, but that is of course possible. After that, you are required to make repayments to stay within the maximum term of 180 months.
As of May 1, 2019, the VFN code of conduct requires its members (including PersonalLoan) that a Revolving Credit has a term that does not exceed 180 months. The VFN code of conduct offers consumers the guarantee of clear information and a responsible credit offer.
In the video below we explain the advantages and disadvantages of a Revolving Credit. Borrowing money should be a choice that you support, now and in the future.
No one can predict the future. Neither do you. A lot can change in 3 years. For example, you can have a child or another job, but also dismissal, divorce or debt counseling can have an impact on your financial situation. When you take out a loan, you have to take into account what lies ahead. There may be reasonably foreseeable circumstances that you should already consider with the application. Report this when you run an application.
A loan is a financial obligation that you enter into for a longer period. Therefore choose wisely. Go for a term that is appropriate to your current situation and loan goal, but that is also responsible if something changes in your life.
Features Revolving Credit
It is important to know the characteristics of a chosen loan form, because you are entering into a contract for a longer period (the term of a loan can easily be 5 years). That is why you will find below an overview of the characteristics of a Revolving credit with an explanation. Of course you can always contact us for more information.
For people who mainly look for flexibility in a loan and do not yet know exactly how much money they need. The Revolving Credit is less suitable for people who are looking for security, in the form of a fixed term and a fixed interest.
The interest is variable for a Revolving Credit. You only pay interest when you withdraw an amount. If the interest rate starts to rise, you will pay less repayment and the term of your loan will be longer.
No fixed term. With a cash withdrawal, the term will be longer. If you are going to redeem extra penalty-free, the term will be shorter. However, the maximum term is 180 months.
A fixed monthly amount, but the part that you pay monthly in repayment or interest, varies.
Yes, you can withdraw the repaid amounts again for the first 36 months up to the agreed credit limit. If you keep withdrawing money, the term will be longer. You also have to repay these amounts over and over again. The maximum term of a Revolving Credit is 180 months.
As a registered financial institution, we work in accordance with the laws, standards and guidelines that apply to our organization. For this reason, we are required to implement an update policy of your personal and / or financial details when requesting a withdrawal. It is in your own interest that you do not borrow more than is responsible in your situation.
Depending on your needs and financial situation, between $ 7,500 and $ 50,000.
As you get older, all kinds of changes are coming your way. For example, your income will change when you retire. That is why it is important to reduce your debt. This means that your Revolving Credit's credit facility will be limited when you turn 65:
- You can no longer withdraw amounts from your Recurring Credit. For Revolving credits from 1 May 2019, you can no longer withdraw amounts after 36 months.
- Your monthly amount is at least 2% of your credit limit, which may mean that you have to pay more every month.
It is in your best interest to reduce debt, because your income usually goes down on retirement and a residual debt may remain in the event of death that heirs face.
You will automatically receive a message from us six months before you turn 65. Do you have questions already? Then contact the customer service department. Our employees are happy to help you from Monday to Friday between 9 a.m. and 5.30 p.m. Telephone number 469-853-4255.
You can (partially) repay at PersonalLoan free of charge.
You must be at least 21 years old and a maximum of 64 years to take out a Revolving Credit.