Request revolving credit Where to apply for ongoing credit
Where to apply for a revolving credit?
If you want to apply for a revolving credit online, then you have to take a number of things into account. Just like when taking out a loan in a bank branch or at the office of another lender, you will have to provide some personal information. In addition, you must of course clearly have in mind what amount you want to borrow and how much you want to repay each month. But there are more things you will have to deal with if you are going to apply for a revolving credit.
What amount can you borrow?
On the sites where you can compare credits, you can also easily calculate your maximum loan amount. After all, it makes no sense to apply for an amount that is beyond your reach and will certainly be rejected. The limit of your revolving credit will depend on your income, the type of employment you have (paid employment or self-employed person, for example), your age and whether you own a owner-occupied home or that you rent. Based on this information and the minimum repayment that you want to pay, you can see what amount you could borrow.
How high is the interest that you have to pay?
In some cases you are not required to immediately withdraw a minimum amount from your revolving credit. But with other lenders that is a condition. If that is the case, you will immediately pay interest on the amount withdrawn and you will have to repay a percentage each month. The interest rate can differ considerably per provider and can also change during the term of your credit. So keep an eye on what percentage applies to your loan and switch if you can borrow cheaper elsewhere.
Can anyone apply for a revolving credit?
Applications can always be made, but whether your application will also be accepted will depend on a number of criteria. Lenders not only take your income and living situation into account, but also look at your age. Sometimes there is a maximum starting age. If you are older than that, you will no longer be granted a loan. You also run that risk with a maximum final age. If this maximum final age, for example, is 70, you will probably no longer be able to take out a revolving credit at the age of 68. Existing debts, such as a mortgage or study debt, can also influence acceptance. And a negative BKR registration will make closing a revolving credit very difficult, if not impossible.
Other costs that you must take into account
In addition to the interest payable and the monthly repayments, there may be additional costs associated with taking out a revolving credit. For example, if you take out insurance with your revolving credit at the same time, such as an occupational disability insurance policy or a life insurance policy. If you arrange this through an intermediary, he may charge costs for this. Advice costs, closing costs or brokerage costs may never be calculated when taking out a loan. This is prohibited by law.
Required documents when applying for a revolving credit
Whether you apply for a revolving credit online or at a financial office or bank, you will always have to be able to show personal documents. First of all a valid proof of identity. That is a passport, driver’s license or ID card. In addition, proof of your income is always requested. A recent pay slip is therefore essential. Finally, you need a bank statement or a printed proof of your internet banking. This serves to check whether the account number and the name actually match the rest of your data. If all information is checked and in order, the revolving credit can be requested.
Within what period can you receive your revolving credit?
If you make a request online with a lender and you can immediately send all the necessary information, you could in principle receive a quote by email the same day. Even if the lender has additional questions or wants additional information, you can actually assume that you will be contacted within one or two working days. Most organizations will want to activate your revolving credit as quickly as possible. So if you immediately agree and sign the agreement after you have received the quote, in most cases you can have your revolving credit within one week.
One of the benefits of a revolving credit is that you can withdraw and repay whenever you want. You will only pay interest once you use your credit and have withdrawn money. Apart from the mandatory minimum repayment per month, you do not have to repay the borrowed amount within a certain period. But because you owe interest on the outstanding amount, it saves you costs when you pay back as quickly as possible. If you want to get rid of your revolving credit, you can always cancel the outstanding loan by making an extra repayment that will reset your balance to zero.
Risks of the revolving credit
Although the revolving credit seems an easy solution for a financially tight period, there are dangers lurking with the conclusion of a revolving credit. Because you can withdraw money from your credit at any time without any problems, you may do this more often than is absolutely necessary. Remember that a credit simply costs money and that saving in some situations may be wiser.