Revolving line: not just credit cards?
The most well-known form of revolving credit line is the one that is granted by issuing credit cards, which allow not only to postpone payments but also to pay in installments. However, the definition of revolving indicates a loan that provides a pre-established sum or credit ( providing for the payment of interest only on the amounts gradually used ) and that, through the repayment of the various installments, gradually restores the reserve of the credit which can be reused with a rotary type mechanism.
How does it work?
Once you understand what it is, to better understand how it works, you simply have to think about a supply of money that can be used if necessary: for example, if the credit is 1500 USD, then you can use the amount in whole or in part (and in the case of partial use on several occasions) in the manner deemed most appropriate. For example with Bankate, Astro Finance, Compass , etc., being able to take advantage of the cash advance methods, you can also have the money in cash, without having to use it to make a purchase (see also Best revolving Bankate cards. In most of the cases it is possible to establish the number of installments with which to make the repayment (within a minimum and a fixed maximum), which affects the amount of the installment (or sum of the various installments) to be paid each month.
Each installment is made up of a principal and an interest, so to make forecasts on the restoration of the credit line, it is necessary to consider only the component linked to the capital itself. Not all revolving credit proposals are then structured in the same way, especially with regard to the limitations set for the determination of the minimum installment.
In the majority of cases there is a minimum percentage (generally around 4%, but there are also hypotheses at 3% or 5% of the total amount to be paid in installments), which in turn cannot be less than a fixed minimum amount ( also here you almost never go below 40 or 50 USD ). However, once these limits are known, it becomes much easier to determine and identify the purchases to be paid in installments.
Opinions on convenience
A separate discussion should instead be made on convenience, given that some revolving cards have rather exorbitant interests ( it also exceeds 20% for the Taeg ). Here too there is no written law, but one can count on a great variety of conditions to be examined and evaluated on a case by case basis.
- Online revolving cards
- Comparison of revolving cards
- Request revolving credit cards
- Credit card installment
- Revolving cards for protesters and bad payers
- Revolving cards without demonstrable income
- Free rechargeable credit card
- Revolving credit cards without checking account
- More convenient revolving card
- Revolving credit
Return to the main page of the Help section and revolving card tips.