So you can no longer borrow ‘infinite’ money. Fortunately, or unfortunately, we don’t always have our lives completely in our hands, which is why people sometimes borrow money quickly. A car that suddenly fails, an unexpected invoice, an insurance premium that comes sooner than planned, or a child that suddenly arrives. Fortunately, there is the possibility to borrow money quickly from various lenders with for example a quick loan in the UK.
Extra spending space with a revolving credit
With a revolving credit you can borrow money during the term and repay it when it suits you. Handy, because it gives you extra spending space. However, there is also a risk here. Because you can withdraw a redeemed amount again, it takes self-discipline to become completely debt free.
No more ‘infinite’ withdrawing money
Lenders have now set a maximum time limit on the time you can withdraw money with a revolving credit. DEFAM, Qander and Nationale Nederlanden, among others, have limited their revolving credit facilities to 12 or 36 months.
This means that you can no longer ‘infinite’ withdraw money with a revolving credit and thus continue to borrow as much as possible.
Self-regulation by lenders
With these new measures, the Association of Financing Companies in the Netherlands (VFN) will continue to self-regulate the sector.
Maximum term for revolving loans
Previously, a maximum term was introduced for new revolving loans. For new loans, you have to repay the loan amount within 15 years. Lenders now also have to regularly check whether the outstanding amount still matches the client’s financial situation.
Customers can loan money very easily
The aim is that customers only use a revolving loan as extra spending space, i.e. for small amounts and a short term. If you want to borrow more, a personal loan is better suited.