Many people have an expensive revolving credit, often without knowing it.
Switching to a cheaper loan gives immediate results; thanks to lower costs per month. Transferring a revolving credit usually costs you nothing, because you can repay the loan in one go. That is why many consumers who already have a revolving credit choose to switch to another lender.
You can find revolving credit of 5 to 6 percent interest per month fairly quickly. This while most lenders offer credit from around 8 to no less than 12 percent. For example, many people have revolving credit with their own bank or credit card company, while these are often the most expensive revolving credit!
There are many new providers on the Dutch market that offer much cheaper revolving credit. Moreover, the interest on the revolving credit has fallen sharply in recent years. In addition, it doesn’t take much effort to switch quickly and to close your revolving credit. Most revolving credit providers do the most paperwork for you. You often only have to place a signature.
Some people even have multiple credits with different providers.
Most of the time this is done out of laziness, because people are often “yes, do it” instead of first investigating. Or some may not even know that a revolving credit is also possible with other providers, and often cheaper. Or they think that they can repay the revolving credit quickly. Or they don’t even know that the loan they have is known as revolving credit.
But be careful before you borrow more money. It is good to study all current contracts, and to make a financial picture. What are the monthly charges? How much can you wear? Will the new revolving credit really be cheaper and generate more money?
In addition, get advice. Because there is a risk attached to the revolving credit, and that is the variable interest. The interest on the revolving credit can be different every year. This is the main difference with a expiring credit such as the personal loan. These loans have a fixed interest rate. It may therefore be that the interest on the revolving credit will rise again in due course.
But whatever you do, don’t leave it at that, because if you have an expensive revolving credit, and that applies to the vast majority of consumers, then this will cost you more money every month than is really necessary. Transferring a revolving credit will often save you more money, because you will immediately save money.
Cheapest revolving credit
Many people simply take out the first continuous credit, but if you look a little further and compare the providers, you can save many thousands of euros on an annual basis. It is mainly the large banks that charge high interest rates for a revolving credit, while newcomers or other lenders can be much cheaper.