What is a revolving credit
It is a very flexible loan without proof that you can take out online.
It is more flexible than the traditional personal loan and is not dedicated to a project or to the purchase of a particular asset such as a car loan.
The bank provides you with a reserve of money without proof which is renewed as and when it is used.
It decreases when you use it and gradually replenishes itself when you pay off your credit.
The interest payable is calculated only on the amount used.
Until 2010, revolving credit was also called “permanent credit”, “revolving credit”, “reconstituting credit” or even “money reserve”.
Credit card with cash reserve
In most cases, this type of credit comes with a credit card that allows you to use your revolving credit easily. When you pay with this card, you use the cash reserve made available to you by the bank.
When to do a revolving credit online?
Online revolving credit is suitable:
- If you only need small amounts
- If you plan to spend several expenses over time .
For larger projects such as work or the purchase of a car, opt for a personal loan or a car loan.
Here are some examples of the use of revolving credit without proof.
How does the revolving loan work?
Indeed, the online revolving loan is special. It is precisely because it is very flexible that its operation is more complicated to understand.
We explain to you how a revolving credit without proof works.
Once the revolving loan agreement is signed, a sum of money is made available to you each month.
It can be spent in several installments to finance one or more projects over time.
You decide where, when and how to use this reserve of money.
You do not have to provide proof of use .
Illustrative example
- Céline and Thibaud, a young couple, want to buy a sofa bed for their new apartment. They decide to use revolving credit to finance the property. They can apply either directly at the store where they want to buy the sofa or from an online financial institution .
- The couple opted for online revolving credit without proof because they have other projects in mind that they would like to finance in the near future. The establishment offers them a revolving credit of € 2,000 at the APR (Global Effective Annual Rate) of 19%.
- To finance their sofa, Céline and Thibaud decide to use € 1,000 of the € 2,000 made available to them thanks to their credit card. The interest payable is calculated only on the amount used. The couple determines with their financial institution that they will reimburse € 70 per month. If they do not use the rest of their cash reserve , Céline and Thibaud will reimburse € 70 per month for 16 months, plus a 17th monthly payment of € 8.
- 6 months later, the couple want to buy a home theater. They need 1000 € again. At that time, they have already refunded € 286 of the € 1000 used for their sofa. The sum of money available is then € 1,286 and the outstanding capital is € 714.
- They decide once again to use € 1000 on their revolving credit online. The couple keeps their monthly payment at 70 €. They will therefore have to repay 30 monthly payments of 70 € as well as a final one of 32 €.
- Céline and Thibaud financed two projects with a single revolving credit . They were free to buy whatever they wanted with their credit card linked to their cash reserve and did not have to justify their purchases with their credit agency.
6 weeks of free revolving credit
Advanzia Bank grants you a revolving loan with 6 weeks of free credit . You can refund your purchases without interest over a 6 week period. This is possible thanks to the ZERO card . This offer is unmatched on the market! Click below to benefit.
Revolving credit without proof: does it exist?
It is important not to be mistaken about the meaning of the term "without proof" .
This is linked to the use of the borrowed money and not to the proof of your identity, your income or any other element of your file.
If we are talking about revolving credit without proof, it is mainly to say that you do not need to justify the use of the borrowed funds.
You are free to buy whatever you want with your revolving credit card.
To note
Like any traditional loan, it is still necessary to constitute a loan file with all the required supporting documents.
Revolving credit card
Why ?
Simply to use your cash reserve .
Indeed, by granting you a revolving credit, the bank provides you with a sum of money which is renewed each month according to your use.
How to make your purchases thanks to this reserve of money?
This is where the revolving credit card comes in.
It will be associated with this reserve of money and with each purchase, you will spend your borrowed money thanks to your revolving credit.
Online revolving credit faqs
Is it possible to take out a revolving credit online?
Yes, you can apply for a revolving loan online. You will find a revolving credit comparator at the top of this page.
How much can you borrow with revolving credit?
You can borrow between 1000 € to 6000 € depending on your needs and the bank.
How to apply for revolving credit online?
You must follow the procedure below:
- Complete the online application form .
- Receive a personalized quote by email or mail.
I was told about revolving credit without proof, does it exist?
This means that you do n't need to justify the use of the borrowed funds . Do not be mistaken about the meaning of the term "without proof" which is linked to the use of the borrowed money and not to the proof of your identity or your income.
Can I prepay all or part of my outstanding balance?
Yes, you can repay all or part of your balance before your revolving credit repayment end date. No penalty will be applied. You must make a request to your credit organization.
What happens if I don't want to renew my contract?
You must notify Us in writing of your decision.
I'm under 18. Am I allowed to borrow?
No, you must be of legal age to be eligible for a revolving credit.
Advantages of the online revolving loan
Here are the advantages of online revolving credit:
- Quick credit to obtain with a file is easy to set up and a reserve of money released quickly.
- Money permanently available thanks to the reserve of money which is renewed each month. You can make quick purchases and manage your credit independently without having to take any new steps.
- Credit card associated with your revolving credit. It is a payment facility for your everyday or unexpected purchases.
- Soft and flexible because you can change your monthly payments and prepay without penalty.
- Discreet . It is not assigned to any particular purchase so you will not need to provide proof of the use of your money. The freedom of use is total .
- Possibility of using only part of the credit and therefore paying less interest costs because you only pay interest on the amount used.
Get quick revolving credit
You can take out a revolving credit either:
- With our bank
- From a specialized financial organization
- Directly in store (“Pay in several installments” offers)
We recommend that you always use our revolving credit comparators to find the best deals on the market.
You will be redirected to a registration form. Fill in the requested information and attach your supporting documents.
The establishment will then examine your file.
If your file is accepted, we will send you a contract offer by email or post.
It must include at least the following mandatory information :
- Revolving credit amount
- APR (Annual Global Effective Rate)
- Cost of deadlines
- term of the loan
- Frequency and number of installments
The duration of the revolving credit depends on the type of offer you have accepted (online or in store).
If you take out a revolving loan online, the term of the contract will likely be one year , possibly renewable.
You will normally be informed three months before the expiry of the renewal conditions.
The amount of the revolving credit is generally between € 1,000 and € 6,000 .
It depends on your income and other credits you have already taken out.
Instant online revolving credit
Making a revolving loan online is quick but not immediate. You must prove your identity and your income for your request to be accepted by the bank.
What to know before making a revolving loan
It is a loan that can lead to a situation of over- indebtedness if you are not careful.
Remember, this is a consumer loan and certain borrower protection rules apply.
The Lagarde 2011 law set the repayment period which cannot exceed:
- 36 months if the total amount of the loan is less than or equal to € 3,000
- 60 months if the total amount of the loan is greater than € 3,000
As with any consumer credit, you have 14 days to retract from the day of acceptance of the credit contract offer.
Important
A credit commits you and must be repaid. Check your repayment capacity before you commit.
