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