Revolving credit on the bank card is a product that has been widely debated since its introduction. But what exactly?
Follow the guide to find out exactly what the pros and cons are.
But why a revolving credit on a BC?
This banking product is a payment card which includes a reserve of money. Its success is based on the ever-increasing demand for small loans.
It has gradually spread to banking establishments. In the United States, it is even the most popular mode of consumption.
The average interest rate applied to the credit is 18%. The customers who are the most fond of this type of credit product have average incomes, are therefore solvent and juggle their overdraft perfectly.
The good side of an il payment card with a cash reserve
Your regular payment and withdrawal card does not cost you more if it contains the revolving credit option. It is therefore a cash advance available at any time, as an option, at no additional cost. It is a consumer credit, and revolving credit, formerly called reviring credit, is governed by the consumer code.
With a revolving credit you can for example avoid an overdraft, without giving up your purchase. You just need to activate the payment “on credit” when paying for your purchase.
You also don’t have any administrative fees and your organization is made easier by having only one card, and therefore only one code.
The risks of a CB with revolving credit
When paying for your purchase, the payment terminal offers you two alternatives : either cash payment or credit payment. If by mistake, you enter the wrong option, it is irrevocable. The major drawback is therefore to trigger credit without your knowledge. In which case, it is simply advisable to repay the borrowed amount as quickly as possible so that the interest does not run.
On the other hand, some bank advisers do not hesitate to proclaim to you all the advantages of this CB if they believe that you are the ideal customer.
Indeed, if you have a real ability to play with your overdraft as well as stable income, this is probably the product for you. On the other hand, it is completely unpleasant to have the feeling that the banker is trying to impose it on you!