What is a revolving credit and what are the benefits?

Do you temporarily need some extra money for a renovation, for example, but you do not know exactly how much the renovation will cost? Then a revolving credit can be a suitable form of loan. A revolving credit is a flexible loan. The repaid amount can be borrowed again up to the pre-agreed credit limit. In addition, the duration and interest of a revolving credit are variable.

How does a revolving credit work?

Do you temporarily need some extra money for a renovation, for example, but you do not know exactly how much the renovation will cost? Then a revolving credit can be a suitable form of loan. A revolving credit is a flexible loan. The repaid amount can be borrowed again up to the pre-agreed credit limit. In addition, the duration and interest of a revolving credit are variable.

When you take out a revolving credit, you are faced with a credit limit. This is the maximum loan that you can get from the lender. You do not have to withdraw the amount in one go, but you can.

The big advantage (and the danger) of a revolving credit lies in its flexibility. You can always withdraw money up to the agreed loan amount. Have you repaid a portion, and still need some extra money? Then you can withdraw money again up to the agreed amount.

Continuous credit explanation costs

Continuous credit explanation costs

With a revolving credit you pay a fixed monthly amount in interest and repayment. As a rule, the repayment is approximately 2 percent of the agreed credit limit or the outstanding balance. The interest rate is variable. During the loan, the percentage can therefore both rise and fall. When the loan interest rate rises, you pay less. In general: the higher the credit limit, the lower the interest rate. Finally, the term of a revolving credit is variable. As soon as you have repaid the loan and think you no longer need any extra money, you can stop the loan.

What is revolving credit? – Advantages and disadvantages

What is revolving credit? - Advantages and disadvantages

Each credit form is suitable for one or more specific purposes. This includes the revolving credit. Because this form of credit is specifically intended to offer extra financial room for a longer period, it is therefore not suitable for everyone. Below is a summary of the advantages and disadvantages of the revolving credit.

Benefits of revolving credit

Benefits of revolving credit

  • A revolving credit is flexible, you can withdraw money and pay off whenever you want
  • No additional repayment of running credit will incur a penalty
  • You only pay interest on the outstanding amount
  • In general, the amount, the monthly costs of revolving credit, remains the same

Cons of revolving credit

Cons of revolving credit

  • The interest rate for revolving credit is not fixed and can therefore rise or fall during the term
  • You simply spend money that is not yours

Tip! Do you want to borrow money for a large purchase and do you already know exactly how much money you need for that? Then a personal loan is a better fitting form of loan than a revolving credit. Moreover, this does not tempt you to borrow more than you need.

Withdraw and cash off whenever you want? A revolving credit is the most flexible form of borrowing money. Interested? Quickly compare the largest selection of loan providers. Close online and save immediately. 

How Secure are Online Loans on Good Credit?

The faster the growth and reach of online lending through Good Finance, the greater the risk for crime. This is not possible because the perpetrator of the crime can always see the opportunity to profit by illegal means.

Does smart friend still remembers the hacking case at the ATM machine? Even ATM machines that have been around for years, which we even believe in its security, can still be hijacked.

So it is not possible that the Smart Friend’s identity is misused

By the lender to lend online through Good Finance. If that is the case then you will be compensated for the extra charge if not the Smart Friend.

Especially since Good Finance has caused some confusion as the misuse of customer data on social media can be a lesson. Many potential customers are hesitant to apply for Good Finance online.

To avoid online loan fraud, there are things you can do to prevent it.

To avoid online loan fraud, there are things you can do to prevent it.

First and foremost, Smart Dude should not be so trusting to others, even if he is a close-knit person. It is not possible for the nearest person to be the perpetrator of the crime by using personal data. Smart Dude should not lend personal documents such as government ID to anyone for any reason.

With the simple online lending system of most Good Finance companies using only a photo of your government ID, it is not possible for the perpetrator to use a Smart Friend file to create a fake account and apply for a loan.

Second, it is important to know the Good Finance companies that have a rigorous screening process for potential borrowers. With only a photo of your government issued ID and personal data, the process of screening potential borrowers is still minimal and prone to fraudulent cases. So Smart Dudes need to know which Good Finance has a strict filtering system to avoid fraudulent cases.

How can I borrow money on Good Credit safely?

How can I borrow money on Good Credit safely?

  • Multiple identity verification process

That is, the identity verification process before submitting in several stages. Just like a government-issued photo ID, a face-to-face photo with a national ID, and then a new self-service. So the possibility of using a Good Credit loan application for fraud is minimal.

There are several examples of consumer complaints cases in which their online loan applications were rejected due to a vague photo of their ID. This complaint is one of the evidences of how the Good Credit system really filters out potential borrowers to minimize the likelihood of fraud.

  • Using AI technology

The Artificial Intelligence (AI) or artificial intelligence system used by Good Credit is one of the leading technologies. In short, this technology will continue to learn with the growing profile of prospective borrowers. So it can be concluded that the more the profile of the borrower is searched, the more strict the filtering process.

Being more strict doesn’t mean it’s harder to apply for a loan. In other words, AI technology is becoming more sensitive to potential borrowers who are eligible to receive loans over time.

There is plenty of evidence that borrowers say that lending money on Good Credit is safe and profitable. So don’t hesitate to apply for a Good Credit.