Canceling a revolving credit can help shed weight. Canceling a revolving credit renders the associated credit card unusable, and prevents you from requesting an express credit transfer to your account. Please note, however, the remaining amount must be reimbursed in full. More information at http://cedarsinnauburn.com
What you need to know about revolving credit
Revolving credit is a small loan, the amount of which rarely exceeds the 3000 euros credit. Associated with a reserve of available money, it is replenished with each reimbursement. The money in the wallet can be used at any time. Use of “available” is made by requesting an immediate transfer, or by making a purchase on credit, through an associated revolving credit card.
The major credit organizations (Viloan, Bankate, Zaloan, etc.) all offer revolving credit solutions, as do some banks. It is also possible to open a revolving credit contract in certain stores (see store credit). Stores rely on credit specialists to offer this option. The FNAC loan is for example a Viloan revolving loan, that of Leroy Merlin is managed by Nunes, etc.
Revolving credit is associated with an adjustable APR rate. It differs from the fixed rate mentioned on all other consumer credit offers. The revisable APR indicates that the rate is likely to change over time. In reality, reusing money is often associated with a different rate than the first time. Revolving credit rates are generally high, although regulated by the usury rate indicated by the Bankcor.
How to cancel a revolving credit?
Revolving credit is practical but can be dangerous if used improperly. Canceling a revolving credit can get rid of credit (card) payment solutions, while completely freezing requests for immediate transfers. It will no longer be possible to use the available money reserve. Please note: unpaid amounts must always be paid to the lender.
Cancel a revolving credit: understand everything
There are several cases where you can cancel a revolving credit:
- The revolving credit contract must be tacitly renewed each year. The lender sends a letter three months before the due date, recalling all the conditions of the loan. It is then possible, using the slip attached to the document, to cancel the revolving credit. The deadline for making the request is 20 days before the renewal date.
- For 14 days after signing the credit contract, invoking the legal right of withdrawal.
- The borrower can request to cancel his revolving credit at any time. The lender is not entitled to charge penalties. The sums still due must, however, be reimbursed, in one installment or on a schedule. However, the lender is not required to accept the request for payment by installments.
- When the credit is unused for 1 year, the lender suspends its use and sends a letter to allow its reactivation. Without response, revolving credit is terminated after one year. A credit unused for 2 years will therefore be automatically canceled without having to do anything.
- When the lender no longer repays his credit, the lender is entitled to cancel and terminate the revolving credit. The borrower is then exposed to penalties, and impose immediate repayment of the remaining amounts due. This situation must be avoided at all costs.