Everything you need to know about bank revolving credit.

 

Revolving credit is an integral part of consumer credit. You do not have to provide proof of entitlement, whether you apply on online banks or from conventional establishments. It is more in demand than the conventional personal loan which is capped at 75,000 USD. It is indeed much more advantageous.

How revolving credit works

How revolving credit works

Revolving credit is a lower risk loan. Unlike conventional personal loans, it is capped at 6,000 USD and therefore offers only a minimal APR. Banks do not discriminate as to the quality of borrowers who request this type of loan. Whether you have a CDD or CDI, or even if you are unemployed you can be entitled to it.

This is not the case for personal loans which are only granted to bank darlings: those who have solid repayment guarantees, a permanent contract and a substantial income. However, it should be noted that the subscription conditions are not the same from one borrower to another. For the unemployed, a deposit will be required to guarantee compliance with the monthly payments.

This banking service however benefits from all the advantages of a personal loan. It is not subject to monitoring by banks and can therefore be used as you see fit. It can be for the financing of a specific project or as a reserve of money as do the majority of borrowers. It is available online and from physical establishments these days.

To claim it, you simply need to fill out a form and gather the necessary documents: identity documents, residence certificate because the banks do not grant loans to foreigners, bank details and bank statements to assess your management capacities. and to facilitate the transfer of funds and monthly payments, and payslips.

The functioning of revolving credit is different from that of all consumer credit and in particular personal loan. It is not released at once, but will be dispatched in several monthly payments. Put more simply, as part of a revolving credit, each monthly payment will allow you to find a reserve of money in your account, and this by month. This will reduce household expenses, and help the latter to better manage his monthly budget. The capital granted varies between 600 and 5,000 USD depending on the borrower’s requests.

The duration of the loan is an advantage in itself. If the classic personal loan commits you over 10 years or more, this is not the case for revolving credit. For a capital capped at 5,000 USD, you will only be bound by a contract of 5 years maximum. The term of the revolving credit varies according to the capital borrowed. If you have opted for a credit of less than 3,000 USD for example, the loan contract will bind you for a maximum of 2 years. You can simulate your borrowing online to see the ideal loan terms based on your debt ratios.

Finally, unlike conventional personal loans, revolving loans can be increased along the way. You can start by taking out a loan of 3,000 USD and ask before the end of the contract for larger monthly payments. It will then be up to the banks to study your repayment possibilities in order to decide how much more you can have. This capital increase has an impact on the duration of the contract. You could go from a 2-year commitment to 5 years. This will affect the APR of your loan.

The revolving loan offer offered by Lite Bank

The revolving loan offer offered by Lite Bank

The revolving credit offered by Lite Bank is called the “Bank Credit”, it is a revolving credit which will start from 150 USD, once your credit accepted by the bank you will be able to obtain the funds from 24h on your account banking.

The different advantages of the Agree Bank revolving credit offer

  • the possibility of making transfers from 150 USD to your account
  • you can pay in installments if you have taken out the Agree Bank direct loan
  • you can request an amount ranging from 750 to 3800 USD over a reimbursement period which can range from 12 to 36 months
  • possibility to prepay your loan without paying any fees

If you choose to make a general society revolving loan with a capital of 500 USD over a slow repayment period of 20 months and you only use 500 USD of the capital, then you will be able to obtain an APR of 16.90% which will amount to pay 19 monthly payments of 30 USD and a final monthly payment of 0.20 $, a total amount due by the borrower of 570.20 USD.

Find out in which situations a loan is worth taking

It is still common for many people to view the loan as a villain who gets in the way of finances and compromises earnings. However, this is due to its misuse.

Therefore, it is very important to know how to detect in which situations it is advisable to take out a loan to save your financial planning and your budget as a whole. But, after all, what are these situations?

Check below the situations in which betting on this alternative may be the best and most economical solution to the problems and see, further, how this credit is not your enemy. Follow!

Paying high interest debts

Paying high interest debts

Some debts have high interest rates – overdraft is an example. So, taking out a loan to pay off these bills is better than paying their high charges, as loan rates may be lower.

With this, you will be able to dilute the installments in a way that fits in your pocket, pay off the financial pending with lower interest rates and be free of it faster, this way your budget will be organized faster.

Pay for studies

Pay for studies

Are you unable to afford the tuition for a higher education course or do you want to specialize, but the installments will weigh on your budget? So, the loan may be the most suitable option.

There are special conditions for personal loans for those who wish to finance their studies. That way, you will be able to pay installments according to your financial condition and you will not be tied to government financing programs.

In addition, with enrollment in progress or providing new knowledge, you are more likely to get a job that guarantees you a higher return than the installments and interest rates that must be paid monthly.

Paying Credit Card Debt

Paying Credit Card Debt

If you overextended your credit card or have an invoice, who has been dragging you for months, with interest already at the limit, taking out a loan can get you out of trouble.

Although you have the option to pay a minimum amount per invoice, this will not help you. In addition to postponing and not solving your problem, interest rates will only increase. Then, consider the alternative of requesting a credit in the amount of your pending.

With the procedure, you will only have to pay the loan installments, which in the long run will be considerably lighter than the card would be.

Opening or expanding a business

Opening or expanding a business

Have you always dreamed of taking the dream of having your own business or improving your business on paper, but never had the financial resources to do so? In this situation, applying for a loan is more common than we can imagine.

This credit can be requested in a finance company and will act as capital for you to start your business, invest in improvements or even expansions.

Taking out a loan can save you from many tightening situations. However, it is necessary to use the resource at the indicated times and research about the financial institution in order to have the best payment terms and not end up getting even more involved.

Now, tell us in the comments: in which situation have you ever needed to take out a loan?