Revolving credit is not applied to the purchase of a specific property; it is intended to finance your living expenses: so you do not provide proof of purchase.
You use what you want:
- You do not have to use the maximum amount:
– You can use only a portion of the credit.
– In short, you “pull” what you want.
- You pay each month more or less depending on what you can:
– The monthly repayments are not fixed.
– You can pay more if you have cash, or less if you cannot.
– Often, there is a minimum monthly payment to meet.
- Credit from 3 months to 1 year, renewable after 1 year.
- You can take credit insurance: useful in case of problems (unemployment, work stoppage, death).
Revolving credit is offered by credit unions, banks or department stores.
Increased protection against over-indebtedness
Consumer safety is enhanced: the lender is obliged to check the creditworthiness of the borrower at the entrance and throughout a revolving debt.
– File consultation identifying incidents repayment on loans.
– Information sheet to be completed by both parties (lender and borrower) to help measure the creditworthiness of the consumer.