Perhaps you doubt whether you want a payday loan or a revolving credit. If you are wondering this, it is best to ask yourself exactly how much you want to borrow and for what. This can determine which type of credit suits you best. If you need a loan for something specific, the payday loan is more suitable for you. For example, if you want to borrow money for a car, kitchen, vacation, caravan or motorcycle, then the payday loan is probably more suitable than a revolving credit.
A disadvantage of the payday loan is that you may not be able to pay off early. Advantages of a payday loan are that the loan has a fixed term and also has a fixed (usually) lower interest rate. This interest is often low because many banks and companies compete to win you in as a customer. When applying for a loan, you can ask lenders to find out how high the interest rate actually is because many interest overviews on the internet are not up-to-date.
Exactly how much money do you want to borrow?
If you want more money without having a specific goal, then a revolving credit is suitable for you. With a revolving credit, you can have an amount of money that you indicate yourself, provided you receive the loan. You can withdraw money from your account when and how much you want. You can also repay the borrowed money without penalty whenever you want, but you can also withdraw the money if you wish. Because you can pay off without penalty, different lenders also charge different interest rates that can often be higher than with a payday loan.
On the other hand, the advantage of a revolving credit is that you determine how long the term of the loan is because you pay off when you want. That is why it is called a revolving credit. If you compare revolving loans, it is most important that you ensure that the loans you compare have the same term. You can easily consult various providers online and you will know within 10 minutes how high the interest is and luckily this is also completely free of obligation.
You can get a revolving credit by requesting a quote from a lender. Just like the payday loan, the revolving credit is a very popular loan in the Netherlands. If you want more flexibility in your bank account, the option of being in the red at times can offer a solution. You have this flexibility with a revolving credit. A revolving credit gives more freedom and flexibility because the repayment can be free of penalties and you can also re-take the repaid amounts if necessary. Furthermore, the term of a revolving credit is also flexible because you can repay extra in the meantime. If these characteristics of the revolving credit appeal to you, you can ask the lender about the interest that you have to pay on the revolving credit because this is generally higher than the interest on a payday loan.