Finding the cheapest revolving credit is an art. The interest often turns out to be higher than initially thought. Where do you find the cheaper quotes for a revolving credit? You will not be surprised that the cheaper offers do not come from the standard banks.
You will find providers of cheaper bids at the competitors who are not as well known by the general public. You will find this mainly online. You can request a quote directly from these lenders. Very easy.
They do not provide a loan themselves, but will find the cheapest provider for you free of charge. They advertise with interest from 4.4%. These providers that you also see in the table above are by far the cheapest on the Dutch market.
After your application you will immediately receive an insight into the possibilities of these banks by e-mail. You state your desired maximum credit and enter all related data such as your income.
You will then receive an e-mail with a customized offer from these four banks. You can directly compare the interest, the conditions and the minimum amount that you must repay per month from your revolving credit.
Continuous Credit with the Lowest Interest
As you will immediately notice with your application, the interest of your revolving credit depends very much on your personal situation. For example, the interest will be higher if you want to borrow a smaller amount. And the opposite is also true: The interest is lower if you take out a higher credit.
See here one of the benefits of the Ongoing Credit. Because you do not have to take all the credit, you can request a higher credit at no extra cost. In fact: you will get a lower interest rate and you will be cheaper (as long as you do not take up that extra credit).
Tip: If you want to borrow cheaper, choose a higher credit with a lower interest rate, but withdraw less money.
Below is an example of an interest rate table on how this can work in practice. This interest rate table is from one of the cheaper providers. Here you can see at a glance how the interest rate goes down as the credit margin increases. Also note the monthly amount. In this case, that is the amount that you must repay at least per month if you withdraw everything.
There are also options to set that monthly amount to a lower amount, especially if you withdraw less money. The monthly amount is usually at least 1% or 2% of the amount withdrawn. You can read these important details in the conditions.
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Continuous Credit Interest Calculate
In addition to the amount of credit you request, there are more factors that play a role in determining the interest rate. The level of interest also depends on your age, your income and, for example, whether you have your own house.
- Your age influences the interest. For example, if you are already in your 60s, the interest will often be a little higher than for a person in their 40s.
- In addition, lenders will also look at your income. How high is your income and how steady is your income?
- Your family composition also has influence, as does your partner’s income
- Finally, your living situation is also important. If you own a home, you can often get a cheaper loan.
The banks set their interest rates based on this data. So you should not think that the interest is the same for everyone. Many banks do advertise with this, but in fact the interest depends strongly on your personal situation and your credit limit.
Cheapest Providers of Ongoing Credit
The cheapest loans through the revolving credit start around 4.5 to 6 percent. The most expensive ones are around 8 to 12 percent, as with most established banks. But who are the cheaper providers who also provide excellent service?
With regard to the price for the revolving credit, Freo scores five stars for the sixth consecutive time, according to the research.
Risks Revolving Credit
Borrowing cheap money is not without risk, so be aware of the costs that a cheap revolving credit entails. Nowadays you can find a cheap credit starting at 4.5 percent. There are enough providers via the internet and advertisements. Many people conclude a cheap revolving credit. You run the following risks.
- You are going to borrow more than necessary. Many people borrow more than necessary. You can often choose the size of your credit facility yourself. It is cheaper to opt for more credit, because you often receive a lower interest rate. But you do run the risk that you will borrow more than is actually good for your situation.
- Your income is going down and you cannot repay the loan. If your income falls, there is a chance that you will no longer be able to repay your loan. It is then advisable to take out your loan as quickly as possible and not to wait. If you incur payment arrears, you can get a negative BKR listing. Then borrowing money and transferring your loan becomes a lot more difficult.
- The interest rate goes up and you pay more interest. The interest rate is very low in 2016, so borrowing money is reasonably cheap. But this is no guarantee for the future. One day the interest will rise again. The interest on your revolving credit also rises, because it is variable. Note that this can happen very quickly. If you have borrowed a lot of money, then this can cost you more than expected.
- You never pay off the loan completely and you continue to pay interest. Many people with a revolving credit never fully repay this. Because it is very easy to just leave the loan. With a revolving credit you never have to pay everything in full. Was it the consequence? People continue to pay interest on the outstanding amount. All in all, the loan therefore costs more money than ever foreseen.