Although it was named by its users, and until recently “ Revolving Credit ”, the title was modified by the Law put into force on July 1, two thousand and ten and referenced under the number 2010 -737 coming as a priority to reform consumer credit . This legislation made it possible to further regulate the offer and by definition the use of revolving credit.
Thus, the legal and exact legal term which describes the action of using a financing product which is reconstituted is composed of 2 words " revolving credit ", an expression more attractive than that of revolving credit , definitively proscribed from the language.
Discover without further hesitation through the lines below "how to better understand the grouping of renewable credits? »One of the answers to our FAQ about credit consolidation !
Make a revolving loan buyback!
It is very simple, quite simply because the reserve of money is a financing product whose cost of use is extremely expensive that it is necessary without hesitation to make a repurchase of your revolving credits !
In addition, this financial product is absolutely not stable, that is to say that its interest rate of variable and not fixed type can increase throughout its life, and this in relation to the uses of the holder. (the borrower / debtor).
We must also be aware of the dangerousness of money reserves because they are accessible to consumers without a real prior study of their financial situation in order to define whether their repayment capacity is sufficient, and that their debt ratio is not. is not excessive.
Through the examination of customer files, it emerges that more than 60% of requests are due to a serious budgetary imbalance due to an excessive subscription of reconstituting loan .
It is easy to take money through your liquidity reserves to pay for other loans, so to avoid such a critical situation, it is recommended to carry out a revolving credit buyback .
A restructuring which makes it possible to transform all revolving credits into a fixed amortizable loan, and thus to be able to amortize them calmly over time at an attractive interest rate. To find out, visit about the repurchase of credit how does it work?
Consumer information: better understand revolving credit!
The term first appeared in the 1960s and is also referred to as " permanent credit ". It was during the most prosperous period of the 20th century that this type of consumer finance developed.
More exactly during the period of the “30 glorious years”, the decades which follow the end of the second world war marked a major turning point for the economy of the developed countries.
It was then the behavior of consumers that was upset and sucked in by the approving actors of a society which encouraged ever more consumption. Aggressive and pervasive business methods have gradually emerged. Consumers have had to adapt to changes in the supply on the market. It is the advent of mass consumption that directly favored the use of consumer credit and a fortiori also replenishment credit .
During this flourishing period, Western households began to equip themselves with technical innovations that changed everyone's life (television, washing machine, refrigerator, etc.). As this equipment weighs heavily on the expenses impacted on the budget of French households, renewable credits have therefore become an essential commercial lever.
The distribution of these cash loans is quickly integrated into customer loyalty services of merchants in various industries. To do this, the major brands associate this credit with a payment card. Consumers dispose of this loan as their own money. It is a significant means used by traders to encourage ever more consumption.
After creating new needs, businesses have found the solution to release a new capacity to consume more easily. Real source of profit for the companies that offer it.
The average interest rate applied to revolving credits is much higher than that of standard consumer credit. In a way, this is the price to pay to access a flexible reserve of money. In order to compare the cost of credit financing, it is advisable to study the APR (Annual Global Effective Rate).