The revolving credit is the only form of loan in the Netherlands where repaid amounts can be used again. The revolving credit is ideal for people who do not yet know exactly how much is the amount that they ultimately want to borrow, or for people who simply want to have an amount in reserve.
With the revolving credit, you only have to pay interest on the amount that you have actually withdrawn. You are not obliged to make repayments every month, for example you cannot repay anything for several years. You are obliged to pay interest every month on the amount withdrawn, which is the only obligation with this loan form.
Features of the starter loan
The revolving credit often has a long term, so you can continue to use your loan for several years, for example. If you pay the interest monthly according to the conditions set by the lender, you can continue to use this loan form in an advantageous way.
When do I take out a revolving credit?
You can take out a revolving credit if you do not know exactly how much you want to borrow at the start of the loan. In addition, the revolving credit is often also used for small renovations (where the total costs are not yet clear in advance) or for the purchase of a car ( car loan ). In general, the revolving credit is a relatively cheap loan, because you only have to pay interest on the amount that you actually withdraw. Suppose you have a revolving credit of $ 20,000 and you have only taken out $ 5,000 of this, then you only have to pay interest on that $ 5,000.
Maximum loan amount with a revolving credit
The loan form 'revolving credit' has no general maximum. The amount you can borrow depends, among other things, on your income (and possibly the income of your partner) and the stability of your personal situation. A maximum amount will be set based on the risk that the lender runs for providing you with revolving credit. The amount that you can borrow can differ per lender.
How does taking out a revolving credit work?
In the Netherlands there are numerous lenders where you can take out a revolving credit. Lenders affiliated with the AFM will always perform a credit check and BKR check before actually providing the loan. With a negative assessment in the BKR register, it is virtually impossible to apply for a revolving credit in the Netherlands. During the credit check, the lender assesses whether your current financial situation is good enough to repay and pay the interest in accordance with the conditions.
Cheapest revolving credit
In the Netherlands, many lenders offer revolving credit, as it is one of the best-known loan forms. By comparing the providers well, you can ultimately save a lot of money on the interest payment. Below you can find the providers that are currently the cheapest for the loan form 'revolving credit'.