Are you considering taking out a revolving credit? Or do you want to know more about this loan? Then you will find more information about this on this page.

Revolving credit

Revolving credit

With a revolving credit you borrow a maximum amount. You decide when and how much money you always withdraw. You will find all relevant information based on the table below. A revolving credit is a flexible form of borrowing money.

What is a revolving credit

A revolving credit has a number of characteristics. These are:

  • Variable duration
  • Variable interest
  • Extra repayment options
  • A loan from a minimum of € 5,000 to a maximum of € 75,000

Variable duration

Variable duration

The term of a revolving credit is not fixed. You can withdraw repaid amounts. This means that if you take out a revolving credit of € 10,000, you can withdraw all or part of this amount at any time. And when this part is repaid you can withdraw money again until the limit of € 10,000 is reached.

Variable interest

Variable interest

A revolving credit has a variable interest rate. This is therefore not fixed and can therefore rise, but also fall. If the interest rate rises, this means that you pay more in interest per month and less in repayment. If this falls, you pay more in repayment and less in interest.

Extra repayment options

If you have a revolving credit, it is possible to always repay more money without being charged any costs.

Does a revolving credit suit me

In the following situations, a revolving credit suits you well

You want to do a large expense

  • You do not yet know exactly what the costs are of this edition
  • You do not know exactly when you need the money
  • You have a variable interest rate above a fixed interest rate
  • You would like to have some extra money for unexpected expenses

A revolving credit is useful in the following situations:

  • A renovation (depot)
  • A sustainable edition in the future
  • A period of less income

Does the above not apply to you? Then a revolving credit probably does not suit you. We advise you to see if a personal loan suits you better. On this page you will find more information about a personal loan.

What are the costs?

What are the costs?

The costs consist of a variable interest on the amount that you have actually withdrawn. The interest rate depends on the interest rate at that time. The costs of a revolving credit only consist of a variable interest. This means that you:

  • No extra costs
  • No closing costs
  • No cancellation fees

So you only have to pay interest on the amount that you have actually withdrawn. Below you will find an example of the costs with a revolving credit of € 15,000.

A revolving credit is useful in the following situations:

  • Combining expensive loans
  • A sustainable edition in the future
  • A period of less income

Does the above not apply to you? Then a revolving credit probably does not suit you. We advise you to see if a personal loan suits you better. On this page you will find more information about a personal loan.

Benefits of revolving credit

Benefits of revolving credit

A revolving credit has many advantages. Known benefits are:

  • Flexible: you can always repay extra money without being fined. This is the case with a personal loan.
  • Always extra money: the repaid amount can be withdrawn again. So you always have some extra money at your disposal.
  • You only pay interest on the amount that you have withdrawn

Cons of revolving credit

In addition to the benefits, a revolving credit also has some disadvantages. These are:

  • Variable interest: the interest on a revolving credit is not fixed and can therefore rise.
  • Variable monthly charges: A revolving credit has no fixed monthly charges. Since the interest is variable, it becomes difficult to estimate the monthly costs.
  • Risky: You can always withdraw repaid money. This often makes it more difficult to repay the loan quickly.

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