revolving credit

You are looking for a small amount of credit to facilitate the purchase of everyday consumer goods or you simply want to have a cash reserve available at any time.

Revolving credit might interest you. A quick update on this common credit practice.

What is revolving credit?

Revolving credit is a credit facility that can be granted to you by a bank or by certain intermediaries such as supermarkets and who act – in a way – as a credit intermediary would do.

For what purpose?

Revolving credit is widely used for everyday consumer purchases such as high-tech purchases (computers, tablets, television, etc.) as well as for everyday consumer products (washing machine, etc.). This is why it is not uncommon for this type of credit opening to be offered in supermarkets.

What interest rate?

These credit openings generally concern fairly small amounts ranging from €1,500 to €5,000. It is in fact about financing everyday consumer goods. Under these conditions, the interest rates charged are generally quite high, that is to say exceeding 10%. In fact, the lower the amount borrowed, the higher the interest rate associated with the credit.

How does it work?

With a revolving credit, you have a credit opening for a specific amount that you can use each month. Let’s say you have a credit opening of €3,000 per month. This means that you will be able to withdraw €3,000 from this opening over one month.

Of course, you will have to repay each month, an amount which will be calculated in proportion to the amounts withdrawn plus interest. So, if you only spend €750 per month, your repayments will be calculated on this amount plus interest. Your credit opening is replenished every month.

Contactez-nous :