What is a revolving credit?
The revolving credit is one of the most popular types of credit in the Netherlands. This is because the credit is particularly flexible, in terms of both terms and conditions. It is also good to know that you will only pay interest on the loan when you withdraw money, until that time (without withdrawal) you do not pay interest.
The interest is low at the moment and that also applies to a revolving credit, from 4.5% you can already go. The most requested amount is € 10,000. Note that the interest is also flexible and therefore not only can fall, but can also rise. It is advisable to request a minimum of 2 non-binding quotes in order to get a good picture of differences between them.
Continuous credit providers
A lender of both revolving credit and personal loan. Of course one of the largest lenders in the Netherlands with a famous name. You pay a fixed monthly amount in interest and repayment, whereby it should be noted that once repaid amounts can be withdrawn. With 61 reviews on the website, NN is rewarded with an 8.3. Extra repayments are no problem and you do not have to pay a fine.
Think of a renovation, a car, a new kitchen, or a caravan or boat. But if you intend to transfer or merge ‘older loans’, then you are also at the right place. You indicate from the first step in an application that you want to merge or transfer other existing loans, a handy service from Goodshop. The interest that is charged is also favorable, with an example of a revolving credit of € 25,000 you will pay 4.1% in interest. If the amount is later, the interest will be higher. You can go there for a maximum of € 75,000.
You can come to Good Finance for all sorts of loan goals. You can specify at the start of the application for which you think you will use the loan. In addition to the standard options, such as home renovation, a holiday or a new car, you can even go there for a loan for a medical intervention or for debt restructuring. On Good Finance’s website you will find a handy calculation tool, with which you can immediately discover how much you can borrow. You only have to fill in 3 questions (income, partner’s income and housing costs) and you will immediately see on your screen which amount is available to you. If you choose a quote, you will receive it in your mailbox the same day. Good Finance works together with several banks and lenders, so if one does not work, another bank can always be tried. With a revolving credit of € 25,000,
What is a revolving credit
With a revolving credit you ensure that you have a constant cash reserve to be able to pay for any unforeseen expenses. It is one of the most popular forms of borrowing in the Netherlands because it has a number of advantages that other loans do not have.
For example, you have a flexible term, a low interest rate (variable) that is from 4.1% at the time of writing, you can also take back what you have paid off, extra repayments are no problem and there is no penalty or costs for that either calculated, you only pay interest on the amount withdrawn.
With a revolving credit, there is no fixed end time, as long as you withdraw money from the credit, it will continue to run. This has the advantage that you do not have to work towards an end time and in this way you can keep the monthly costs low. You can cancel the credit if everything has been repaid, if your balance is at 0 then the credit will be terminated.
Low variable interest
The interest on a revolving credit is variable and changes with the current interest rate, so it may be that you pay off one month more than the other. With the current low interest rate, this is certainly beneficial, but interest rates can of course also rise. In any case, the amount that you must repay per month remains the same, so nothing changes, even with a higher or lower interest rate. With a higher interest rate you pay less and with a lower interest rate you pay more on the amount withdrawn.
Re-recording repaid amounts
If you have repaid 200 euros a month for a year, you can withdraw this 2,400 euros if you need it. It also makes this form of credit so popular because you don’t have to take out another loan in the event of a sudden need for money. This is not possible with a personal loan and you must apply for a new loan again. In general, you must at least pay off the interest each month, of course you are free to pay a higher amount each month, this is possible with a revolving credit without penalty and without extra costs.
Interest on the amount withdrawn
Suppose you have a revolving credit of 10,000 euros, this money will not be deposited into your account but will be made available to you via a separate bank account number. If you do not need any extra money at the moment and you do not take anything out of the loan, you do not have to pay interest on it. You only start paying when you start using the money.
From what amount does a revolving credit start
You can request a revolving credit from 2,500 with a maximum of around 150,000 euros. Lower amounts are generally not closed, although popular amounts to borrow are: 1000 euros to borrow and 2.500 euros to borrow. Another much in demand amount is 15,000 euros. Higher amounts are less obvious, but everything has to do with your monthly income and expenses.
You may not deduct the interest from a revolving credit on your annual tax return, even if it is used for the renovation of your house. read more about this on the website of the government. Here is explained which forms of borrowing are still eligible for tax benefit.
You can transfer an existing loan to a new credit that may have terms and interest that are more favorable than what you have now. Most all lenders offer this service and will take care of all the paperwork, they ensure that your old loan is repaid and canceled. This makes an expensive loan transfer a lot easier.