Does the revolving credit work as a credit card?

26 Aug

Do others tell you that the revolving credit works like a credit card? In a sense, they are right about that, although on the other hand there are also differences. It is therefore wise to properly compare the two options, both in terms of costs and options. You ensure that you can request a revolving credit or a credit card, depending on what is the best choice in your situation.

Withdrawing money with a revolving credit

Withdrawing money with a revolving credit

With a credit card you have the option to withdraw money up to a certain amount, up to the credit limit. A revolving credit works the same way in that regard. You agree with the bank to which credit limit you can withdraw money. However, the most important difference is that you do not receive a debit card that you can use to pay. Instead, you can withdraw the money by having it transferred to your checking account. You then have the money at your disposal, to spend it the way you want.

Pay interest on the outstanding amount

Pay interest on the outstanding amount

Both with a revolving credit and a credit card you pay interest on the amount that you withdraw. Have you agreed on a credit limit, but are you not using it at a certain time? At that time you do not have to pay interest. As soon as you withdraw an amount, you will pay interest on it. The revolving credit works in that regard in a flexible manner. On the other hand, keep in mind that, just as with a credit card, there is no known schedule to repay the borrowed amount properly.

Choose from a revolving credit or a credit card

Choose from a revolving credit or a credit card

Do you want to choose from a revolving credit or a credit card? If you want to have a card at your disposal to spend, the credit card is a good choice. On the other hand, do you want to make sure that you will incur the least possible costs? With a revolving credit you generally pay a lower interest on the amount that you would like to borrow. The credit card stands for the most optimal convenience, while with a revolving credit you ensure that the money borrowed will cost you less in the long term.