How to calculate the interest and the cost of a reserve of money (revolving credit or revolving credit)? The calculation method will allow you:
Currently, because of the new laws, the APR applied to the revolving account is variable according to the tranches of borrowed capital or according to the speed of repayment . It is the latter solution which is most often adopted by credit institutions (Paydaynow, Sofinco, Paydaychampion). The faster you repay, the lower the TEG, and therefore the lower the cost of credit.
Usually, the monthly payments offered are actually a percentage of the amount borrowed. For example, for a reserve of 1000 us dollars, you have the choice between monthly payments of 30 us dollars (3% of the amount borrowed), 40 us dollars (4%), 50 us dollars (5%) ... The first thing to know: the lower the monthly payment, the longer you repay, and the more expensive the loan! The table below shows you the repayment periods and the cost of credit according to the monthly payment you have chosen.
For each personal case you just need to do a little calculation:
Percentage | Number of refunds | Estimated duration | Example for a credit of $ 2,000 (with an APR of 10%) | |
---|---|---|---|---|
Monthly payment ($) | Cost ($) | |||
3% | 40 | over 36 months | 60 | 400 |
4% | 29 | over 30 months | 80 | 320 |
5% | 22 | - than 24 months | 100 | 200 |
10% | 11 | - than 12 months | 200 | 100 |
Establishment | Lower rate | Higher rate | Calculation according to | subject to acceptance by the lender |
---|---|---|---|---|
1 | ![]() | 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 paying over 6 months Find out more about Paydaynow revolving credit. | ||||
2 | ![]() | 6.17% | 20.82% | The speed of repayment |
The rate does not vary by use or amount. Find out more about the Cofinoga revolving credit. | ||||
3 | ![]() | 11.90% | 21.11% | 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 achieved by repaying more than US $ 3,500 over 23 months. Find out more about Paydaychampion revolving credit. | ||||
4 | ![]() | 13.22% | 19.93% | 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. Find out more about the Franfinance revolving credit. | ||||
5 | ![]() | 13.24% | 19.95% | 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. Find out more about FLOA bank revolving credit. | ||||
Updated: 01/11/20 |
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