Taking out a Standing Credit means borrowing money flexibly. Not only do you borrow money for a specific loan goal, such as a car, but you also want to have access to extra money in the event of unforeseen expenses. If the washing machine or dryer breaks, you want to be able to buy a new one immediately. If you have to deal with an expensive repair or maintenance of your car, you want to be able to arrange this immediately. With this flexible credit you don’t have to worry about these unexpected, sometimes high, expenses.
Characteristics of a Revolving Credit
A Continuous Credit is, just like a Personal Loan, a loan form of consumer credit. The flexible form of borrowing is characteristic of the Continuous Credit and it gives you financial freedom. You agree on a credit limit and up to that limit you can decide yourself when and how much you withdraw. In the case of an unexpected release, you can immediately dispose of your money. You only pay interest on this withdrawn amount. The interest and duration are variable.
What makes this credit really flexible is that you can withdraw repaid amounts up to your withdrawal limit. A revolving credit means withdrawing money when you need it.
In contrast to a Personal Loan, a Continuous Credit has no fixed term. Credit providers want you to have repaid the credit before reaching a certain age. We use the maximum age of 74 years; before you reach this age, the revolving credit must be fully repaid.
Taking out a revolving credit to finance the residual debt on your home means that the interest costs are tax deductible. You do not receive this tax benefit when financing other loan objectives. This scheme expired on January 1, 2018, but still applies to rescheduling of a residual debt.
With a Personal Loan the interest costs are tax deductible if the loan target is residual debt financing, or a renovation or improvement to your own home.
With a revolving credit you can redeem at any time without penalty. Do you have a financial windfall? Solve this amount free of charge on your credit and reduce your outstanding loan amount.
Homeowner revolving credit
As a homeowner, you borrow a higher loan amount at an attractive low interest rate because a owner- occupied home offers extra security to the lender. Here too, in the case of a residual debt financing, you as the owner have a tax advantage provided that the loan is taken out before 1 January 2018. With other loan objectives you will not receive a tax benefit.
What does a credit cost?
What costs do you have to pay for a Standing Credit? The amount of the costs, your monthly amount, depends on the amount of your credit limit. The monthly charges consist of a part interest and a part repayment. You pay the variable interest on the outstanding balance. The rest of your monthly amount is repayment. With a Continuous Credit you can choose a monthly installment of 1 to 2% of the credit limit. The amount of interest and repayment together form your monthly amount.
Our interest rates are low and our conditions are favorable. You borrow money cheaper if you are married, both have a steady job, have children, have a house for sale and do not have a negative BKR registration. Calculate which interest rate we can offer you.
Borrow money more cheaply
- Transfer an expensive Continuous Credit to a new Continuous Credit
Do you have a Continuous Credit with another lender at high interest rates and unfavorable conditions? You can transfer the credit to us free of charge. We convert your current credit free of charge into a new credit with a low interest rate and on favorable terms.
- Convert personal loan to revolving credit
In the case of a Personal Loan you have no flexible management of your loan. Have you taken out a loan for your car, but is it due for major maintenance? Transfer your Personal Loan to a Continuous Credit, so that you can pay the costs of the extra expenses.
- Aggregate loans or credits
Do you have multiple loans and / or credits? Combine them into one Continuous Credit, so that you have an overview and pay a lower interest. The interest for a low loan amount is usually higher than the interest for a higher amount. Merging loans is free of charge.