Revolving Credit, What is the Principle?
Revolving credit, what is the principle?
The revolving credit is a credit that is granted to the customer in a medium-term term that is to say a year that is reimbursed with the interest rate “Annual Total Effective Rate (APR)” is a rate that depends on the amount of money you borrow and it’s a revisable rate. The amount of money you have borrowed can be used in any project you want. For the refund you can repay it at any time that is to say earlier than the date warned if you have the means.
The revolving credit is associated with a credit card or a loyalty card that allows you easier use. Previously, the revolving credit was called “revolving credit”, “credit restorable,” “revolving credit” but after the decree pronounced on September 1, 2010 the law has forced the particularized “revolving credit.”
A revolving credit is available at most banks or credit institutions or even in supermarkets and specialty stores.
To avoid any risks occurring you must be vigilant in the surveillance and have sufficient ability to manage your account. Mismanagement could be the cause of overconsumption or even worse you could be over-indebted. Revolving credit is expensive and requires a lot of obligation from organizations . But the advantage of revolving credit is that it is flexible and available anywhere but you still have to be very careful.
The revolving credit has an advantageous principle because the answers are immediate and fast after an audit of your files and the necessary supporting documents. When you do not use it does not cost anything and there is no fee either, so it can make you benefit from a few sums of money. The other advantage is that the credit is not tied to a specific purchase of property that also differs from an assigned credit.
It also has this principle of renewal automatically annual and that is why the organization or the bank must send the terms of renewal of the contract 3 months before the annual deadline. If within 20 days before the due date you decide not to renew then you are kind enough to pay the debts of the old condition.