Revolving credit

Revolving credit has often changed its name depending on the era: credit or permanent account , overdraft , revolving credit and even reconstituting credit ... At the latest news, and according to the latest laws, we are, for the moment, fixed on the name Renewable Credit . It must be said that this type of credit has never had a good press ... and governments of all stripes (Scrivener, Lagarde, Hamon ...) have all tried to put their "paw" on this type of credit.

The principle is quite simple: you have an account (a reserve) in which you can borrow sums. When you repay your monthly payments, you increase your available reserve, and when you take back money you decrease it.

Comparison of revolving account rates

To help you make the right choice, we have compared the highest and lowest rates according to the revolving credits of each institution.

**Comparison of revolving account rates**
	Lower rate	Higher rate	Calculation according to
subject to acceptance by the lender
1	8%	21.06%	The pricing is adapted to the speed of repayment: the faster you repay, the more advantageous the rate.
The higher the monthly payments you pay, the lower the rate and the shorter the repayment term. The lowest rate is reached by repaying over 6 months

2	6.17%	20.82%	The speed of repayment
The higher the monthly payments you pay, the lower the rate and the shorter the repayment term. The lowest rate is reached by repaying over 3 months

3	6.17%	20.82%	The speed of repayment
The rate does not vary by use or amount.

4	12.90%	21.20%	Refund speed and amount
The more you pay off high monthly payments, and the more you borrow, the lower the rate. The lowest rate is reached by repaying more than 3,500 us dollars over 23 months

5	13.12%	20.59%	According to the amount
The rate varies depending on the amount used. The lowest rate is reached by paying back more than US $ 3,000.

6	14.90%	21.20%	According to the amount
The rate varies depending on the amount used. The lowest rate is reached by paying back more than US $ 3,000.

Revolving credit has often changed its name according to the times: credit or permanent account, overdraft, revolving credit and even reconstituting credit ... At the latest news and according to the latest laws we are, for the moment, fixed on the name Renewable Credit . It must be said that this type of credit has never had a good press ... and governments of all stripes (Scrivener, Lagarde, Hamon ...) have all tried to put their "paw" on this type of credit.

The principle is quite simple: you have an account (a reserve) in which you can borrow sums. When you repay your monthly payments you increase your available reserve, and when you take back money you decrease your available reserve.

When you take out a loan of more than 1000 us dollars, the organization, if it offers you a revolving account, must also offer you a depreciable loan (classic loan) in order to give you the choice. This is valid even if you take a credit in a store.

Revolving credit, what for?

The very principle of the revolving account is not to have to justify its use. Whether it is money to put into your account, to buy a smartphone, to go on vacation, you do not have to provide proof or an invoice. It is this total freedom that largely explains the generally higher rates of this type of credit.

The repayment term

The repayment term depends on the amount of monthly payments you choose. The more you choose a higher monthly payment, the shorter the duration (and the less expensive the credit!).
The durations according to the monthly payments of the revolving credit.
The calculations below are estimates, and in some cases you will be a few US dollars above or below the monthly payment. However, this allows you to get an idea of the duration ...

**Amount of reimbursement according to the duration of the loan**
	6 months	12 months	24 months	36 months	48 months	60 months
1000	170	90	50	37	-	-
3000	520	270	150	110	-	-
5000	850	450	250	185	140	119

Note since April 2011 the law regulates the repayment period of revolving accounts. For a single use the duration is limited to
- 36 months if the total amount of use is less than or equal to $ 3,000,
- 60 months if the total amount of use is greater than $ 3000.

Choosing a revolving account, a good choice?

Taking a revolving account for small sums in payday is useful and has little impact, the rate is higher but quite similar to that of a bank overdraft. And it is better to manage a revolving account than to be in the red at the bank! What is essential is to choose the highest possible monthly payment according to your budget . For example if you borrow 3000 us dollars in revolving account by repaying 150 us dollars monthly, you have 600 us dollars agios… whereas by repaying 110 us dollars per month you will have almost 1000 us dollars agios!
Therefore, favor high monthly payments and short durations .

See as well

The best revolving credit offers?

What cost for a revolving credit?

The personal loan