A revolving credit is a flexible loan, where the loan amount, the term and the interest rate are not fixed in advance. You can withdraw money continuously within a credit limit that you determine together with the lender.
You can withdraw money that you have repaid. This loan form is especially suitable if you need more financial room, but you do not know exactly how much and for which period.
The interest that you pay on the amount you withdraw is always variable and can therefore be increased or decreased by the lender. The interest depends on your personal situation and the amount of the credit limit. You can often hold that the higher your credit limit is, the lower the interest rate will be.
Compare interest rates and conditions
The interest rates can vary per lender. You can therefore save a lot of money if you make a good comparison before taking out a revolving credit. As mentioned, the amount of interest depends on the amount of your loan, but how much can you actually borrow? This depends on how much you can still borrow responsibly. Guidelines have been established on this. Your income and other expenses are included in the calculation for how much credit you can request. In this way it is prevented that people borrow more than they can pay back.
When comparing lenders, pay attention not only to the lowest interest rates, but also to the other conditions. Only then will you find the revolving credit that is actually the most favorable for you and your situation. The most convenient way to compare different lenders is to request quotes from multiple parties.
There are various websites that compare lenders.They collect current interest rates from different credit providers in a well-arranged list. You can also usually make a quick calculation based on the desired loan amount, your income and living situation.
You will then receive a nice estimate of what you can expect. From here you can usually request a quote immediately. Please note that not every website comparison includes all existing parties in the comparison, but sometimes only some of the best known. So it’s good to always look at a few different websites to see which lenders really have the lowest interest rates.
Request a personal quote to see who is the best provider for your situation. You can also try out a few different calculations with different loan amounts and monthly repayments.
For example, it may be advantageous to borrow more, but not to withdraw a lot of money in the meantime. You pay a lower interest rate because of the high credit limit, but as long as you do not withdraw much you do not spend much on interest.