What is revolving credit?

A revolving credit ensures that you temporarily have extra money in reserve . This can be useful, for example, if you do not yet know exactly how much you need, for example during a renovation. Or when your children go to college. A revolving credit is a loan within which you can take out and repay flexibly. With this you can withdraw whenever you want , up to a certain given credit amount.

Why we do not provide revolving credit

Because it is so easy to borrow extra money with a revolving credit, you run the risk of borrowing money without actually being necessary, while you do pay interest on it. In addition, the interest rate and term are not fixed. We, as Centerh-loan, find revolving credit unjustified and above all beneficial for the lender, and not for the customer. Because of this opinion, we therefore do not provide revolving credits.

The cons

Interest is not fixed

The interest rate is variable with a revolving credit. This means that the interest is not fixed and can fall, but can also rise. If interest rates rise, you pay more interest and less repayment. This means that it takes longer to repay your loan.

Interest is not deductible

The interest that you pay with a revolving credit - unlike with a personal loan - is now no longer deductible if you use the loan for renovation or improvement of the owner-occupied home . With a personal loan, the interest is deductible when you take out a loan to improve your home.

Duration is not fixed

A big disadvantage is that the duration is not fixed. Because of the option to make re-withdrawals, you never know exactly when you will be off the loan.

Flexible recording not justified

With a revolving credit you can withdraw whenever you want. The disadvantage of this is that because you can easily withdraw more, little will be repaid over time. This way the amount you accused will only increase.

In short; with a revolving credit you do not know as well where you stand .

Do you want to borrow money responsibly?

Then a personal loan is a wise choice. You can contact Centerh-loan for small personal loans. With a personal loan (or: declining credit ) you agree with the lender on an amount that you pay off every month. This way you can be sure that you have repaid the entire loan after the agreed time.