Author: Megan A. Lloyd
A revolving credit card is a form of loan intended to pay a rate that allows purchases made. This is a payment instrument issued by banks that allows you to pay in installments for the payment of certain products purchased.
How does the revolving credit card?
Unlike traditional credit cards, the revolving credit card is a financial instrument that will be charged the amount spent on the current account in a single solution, but allows you to pay in installments. In practice the bank or institution financial issues it opens a line of credit to the customer, with an expenditure ceiling. In practice, each installment taken from the bank, the amount available on the credit card attached to the revolving enriched by a figure equal to that of the installment paid, so that customers can carry other charges (always within the limits of the agreed ceiling , known as Fido).
Repayment of revolving credit cards
The percentage of the installments to be paid is shown on the contract. It can be an absolute value (egg € 100 per month) or a percentage value (egg 10% of the total).
Interest rates on revolving credit cards
Interest rates are calculated based on the parameters of TAN and APR. Compare the APR of different credit card credit.
Advantages of revolving credit cards
Ability to pay in installments payments for purchases.
Disadvantages of revolving credit cards
The customer must pay interest on all sums had in advance.
If the current account balance negatively related to the paper exceeds the amount of revolving credit (maximum), the customer must also pay the overdraft fee.
Among the various forms of financing, revolving credit cards, the rates of interest higher than ever.
How to choose the best credit card revolving?
When choosing a revolving credit card must pay particular attention to TAN (annual rate), APR (annual percentage rate) and fixed charges (annual fee, the cost of sending statement of account fees). The figure to watch is always that of the APR, since it expresses the actual cost of the loan.
Pay particular attention to the additional costs of revolving credit card, such as sending statement of account, the annual fee, and the committee to pay at the counter, which can be up to 5%.
Some statistics on revolving credit cards (as of April 2010)
The revolving credit cards on the market are 14 million, of which 4 million active. 3% of credit card transactions are covered by the revolving cards.
Some revolving credit cards
Some of the main revolving credit cards in circulation are: American Express Blue card revolving Compass Classic Card Barclays Revolving Carats, Mahoney It Consume Classic Card, Paper Prestitempo Deutsche Bank, Charter on Duchy Ages, Carat Aura Findomestica, and Carat Intense San Hourglass Paul.
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