We avoid borrowing like fire, trying to save as much money as possible. It is widely believed that a person without credit is a happy person. If it is not the first time that we are put up in front of the wall and the necessity to decide to make a financial commitment, we can use the renewal. In this way, we will avoid many unpleasant stages and we will get money faster. What is the situation with the so-called revolving loan ? Is it different from the traditional more popular standard loan? Is it worth using it?
Increasing debts, increasing liabilities, sudden expenses. All this causes not only a lot of stress, but also the need to look for the right solution for us. While taking a loan involves many documents, assessing creditworthiness, taking a loan may seem easier.
Revolving loan – definition
A revolving loan consists in receiving a specific amount of money for your own, time-limited use, with the simultaneous possibility of using the money that has been allocated to us repeatedly. How much money you get depends on many factors, including creditworthiness. In turn, the ability is a compilation of factors such as the number of loans taken and their regularity and timely repayment. The renewal of such a loan is a duplication of a similar solution, especially such elements as its amount, timeliness, etc. It is important that earlier loan repayments are dictated by punctuality, duty and regularity. In the case of such a loan, the APRC , commission or interest rate also apply. It is important to read the contract every time, even if the loan is taken again and based on similar solutions. The total cost of the loan and its final costs may change and depend on factors beyond our control.
Bank loan – advantages
So when is it worth taking this loan and does it bring any benefits? First of all, it’s a great choice when you need a small amount for a limited time. Secondly, the revolving loan gives you the opportunity to adapt the offer to our expectations, changing formalities and previous arrangements. Thirdly, in the bank’s offers we will find several proposals, each of them will propose something different, which as a result gives us a good chance of finding the perfect offer. Let’s compare, for example, two different solutions offering such a way of financial support:
- VIVUS revolving loan – we sign the contract only once, with the first commitment, minimizing the time deposits for the next loans. You can pay off this type of loan faster – in whole or in part. The lender reimburses any costs incurred as a result of the shortened repayment period. Choosing such a loan is convenient, practical, but above all very fast. According to the advertisement – money can be on the account in 15 minutes
- ING revolving loan – the loan requires collateral in the form of a blank promissory note. The contract concluded with the bank is signed for a definite period – usually 12 months, unless otherwise provided in the contract. The loan repayment installment must be greater than USD 300 and must be paid each month. In addition, the assumptions of the loan do not differ from the above mentioned elements. This means that the loan concluded with the bank requires more control, is more formal, lasts longer, but at the same time it is safer and, in general, can be more beneficial.
Is it worth using a revolving loan?
Yes, but you should consider its source. Non-bank institutions often impose limits or new ways of formulating and submitting applications. In addition, if we appear on the list of debtors, getting financial assistance can be extremely difficult. This type of loan can be a great solution when you decide to borrow USD 2 to 3 thousand – it is a relatively small amount of money and getting it can be really easy and quick.