Revolving credit is a small credit without proof of use of money. More expensive on average than a traditional depreciable loan, it is generally accepted more easily by credit organizations or banks. Let’s review everything you need to know about revolving credit without proof, before seeing how to make sure you get a favorable opinion at the best rate. see http://charlesv2000.org/the-7-drawbacks-of-bankruptcy/ for further notes
What is a revolving credit without proof?
Revolving credit without proof is a small reusable credit, generally easier to obtain than a personal loan or any other consumer credit product (car loan, work, etc.). Credit organizations all have revolving credit solutions, as do most banks. Here are the main features:
- Amount generally between 500 $ and 6000 $.
- Credit without proof of use of money.
- Revisable APR rate.
- The money available on the revolving credit contract is replenished with each monthly payment repaid.
- Repayment period: maximum 60 months.
- Loan subject to the rate of wear, like any consumer credit.
Revolving credit without proof of use of money is easier to obtain than depreciable credit, because of the small amounts associated with it. This does not mean that it is a credit without proof of income or identity. It is only in the case of a small store loan that it is sometimes possible to obtain a revolving loan without necessarily justifying your financial resources.
Revisable APR rate and wear rate: understand everything
The revisable APR rate is the benchmark indicator for revolving credit without proof. Unlike the fixed APR rate, the revisable rate can change, mainly when the money available in the portfolio is reused. The lender is also likely to change the rate – up or down – of an existing revolving credit agreement. In this case, however, it must always warn the consumer, who can refuse the modification. In case of refusal, the refund will be made until its end under the conditions of the previous month. Credit however loses its reusable nature, becoming at the same time a simple depreciable credit.
As for the usury rate, it represents the maximum rate applicable on a consumer credit contract. Provided by law to avoid abuse, it always hovers around 20% in the case of revolving credit without proof of use. The Banque de France website updates the wear rate every quarter.
Where to find the best revolving credit without proof?
It is by combining two essential criteria that our credit comparator finds the best revolving credit without proof:
- The best APR rate
- Chances of receiving a favorable opinion
There is actually no point in rushing for a promotional rate if credit is denied. Our experience in revolving credit without proof allows us to determine a ranking based on both the best rate and the chances of receiving an immediate positive response in principle.
Revolving loan comparison
A comparison of revolving credit rates without proof offered by three of the major players in consumer credit shows the differences in rates, but also the presence of different repayment rates.
The best APR rate for the $ 3,000 revolving credit among these three big names in consumer credit is 7.90% revisable APR (see Sofinco revolving credit). It corresponds to a credit over 10 months, which still implies to repay $ 311.00 every month. A schedule not always easy to assume, likely to expose to a refused credit risk. The Cofidis revolving credit has a slightly higher rate, but offers a longer repayment period. In our example, small incomes have to choose between rate level and adequate repayment duration.
Revolving credit: choose the right repayment period
As we have seen, choosing a revolving credit without proof of use that is easy to repay is the priority. A credit that is difficult to repay can lead to the temptation to reuse the money available in its reserve, whether to finish a month or pay an unexpected bill. However, any re-use of revolving credit is generally offered at a rate close to or equivalent to the maximum allowed (usury rate). If the rate is almost always more attractive by shortening the repayment period, it is therefore important not to overestimate its repayment capacity.
In addition, the law provides for a maximum repayment period under a revolving credit :
- 36 months maximum up to 3000 $
- 60 months maximum beyond 3000 $
Good to know: it is possible to repay all or part of a revolving credit without proof of use in advance. Credit balancing avoids paying the remaining interest owed.
The case of revolving store credit
The majority of department stores offer credit solutions, through their loyalty and payment cards. In-store credit makes it possible to make a credit purchase without delay. Signs can in some cases offer a mini credit of less than $ 1000 by limiting the list of supporting documents to an identity document, a proof of address, a bank details and a bank card.
Supporting documents for revolving credit
Revolving credit without proof of use of money is not a loan without supporting documents. The documents generally requested within the framework of an online revolving credit are:
- An identity document (identity card, passport, permit)
- Proof of address
It is also possible to obtain a revolving credit without any supporting document, in the case of a reuse of the available money. By opting for a payment of his available balance, the money is transferred within 24 to 48 hours to his bank account. A store purchase made on credit using a card already associated with a revolving credit does not oblige to provide additional supporting documents.