He has a bad press, especially since more than a year with the drift of indebtedness and increase the number of people in financial distress. Accused of all evils, and some even wanted it to be dropped altogether, revolving credit, which can no longer be called cash reserve, has recently been reformed to strengthen the protection of consumer. Some rules for use without risking the vicious circle of credit that pays another credit. According to financial institutions, banks agencies, both qualities are the revolving its flexibility and low monthly payments. It is actually very easy to purchase a revolving credit, even large retail chains in offer, especially brand mail order for 40% of their turnover thanks to revolving credit. But the rates are very high, more than any other type of credit (close to the rate of wear between 15% and 19%). The first tip: if you know what you should buy, ask an appropriation often signed at the place of sale of the property or service that you want to acquire. It only funds for which it is intended and its primary benefit are to be void if the sales contract is not respected (defective item, delivery conditions nonconforming?).
The flexibility of revolving credit is characterized by the freedom given to you to have the money as you wish, according to your choice and at your own pace: it may take the form of a line of credit with the bank Your current account (or overdraft), or be backed by a map proposed by a large chain of distribution. Each repayment reserve is replenished as you do not demand automatically and silently after one year. With the reform Laggard on consumer credit, the card issued by the department store must set forth that it is a revolving credit card, full payment is also possible to automatically default if you want to pay credit, and you must make the request. With the reform, if the purchase amount exceeds E 1,000, the seller is obliged to offer you a personal loan repayable (more expensive than a loan used) you are free to accept. Monthly payments for this type of credit include a share capital repayment, not just interest. The preliminary offer you leisure to accept within 15 days must include the maximum amount as well as the APR, annual percentage rate upon which your attention should be focused. It is he who determines the total cost of your loan. Revolving credit facility has a term of one year with automatic renewal. Three months before the deadline, you must be informed by the lender of the conditions for renewal of the contract and repayment of amounts due. You can object to any changes within 20 days by returning a rejection slip. You will have to repay the amount of the reserve money already used to initial conditions. Also, be aware that you can apply at any time lowering your credit reserve (and vice versa), as well as the termination of the contract. Furthermore you can transform your traditional credit revolving credit during the annual renewal: your monthly payments will be fixed and the end date of the contract is known.