With a money reserve or credit opening.you can temporarily cope with unforeseen costs.
The capital of the money reserve is available on a continuous basis. So you decide whether you use it and when you pay it back again. Do you not use the money reserve? Then you do not pay any costs. Below you can compare the providers of a credit opening.
How does a money reserve work?
In practice, you will have to make the purchase through a current account with the lender. That means that you therefore temporarily go below 0 on the current account. Afterwards you can decide freely when you pay back the loan amount. You decide how much you lend. You can always re-enter the redeemed amount afterwards. Most cash reserves allow you to withdraw a credit amount between 500 and 5,000 euros. Would you prefer to borrow more money ? Then we recommend a classic personal loan . This immediately gives you a larger credit.
Is a money reserve forever?
No. Most credit openings are indeed for an indefinite period. That does not mean, however, that you would not be able to cancel the money reserve. You always have that right. Some credit openings also work for a fixed duration, whereby the duration is tacitly extended each time.
A credit card can be a money reserve
But not always. Everything depends on the system on which your credit card works. Certain Visa credit cards and Mastercard credit cards allow you to pay back the purchases you have paid via the card. In that case, there is indeed a credit gap. The lender lends you the purchase price of, for example, the washing machine or vacuum cleaner for a certain period of time. However, if your credit card settles all your purchases with the amount on your current account the month after that, there will be no credit facility.
Is there a minimum amount that I have to pay back?
Yes, that’s possible. The lender will include this in your practical arrangements. For example, there are creditors who require you to repay monthly a certain percentage of the withdrawn amount. For example, 6% with an absolute minimum of 25 euros. Also take into account the reset period. In order to prevent households from accumulating debts, the legislator has imposed this zero-term period. As a result, after a certain period of time, you will again have to place the credit balance balance at 0. The exact reset period depends on the amount of the credit line. Once you have completed all the arrears, the period of zeroing starts to count again.
Cost of credit opening
With most creditors you do not pay management or file costs for the credit opening. This means that you will only pay costs for the period in which you go below 0. Have you, for example, agreed a credit limit of 3,000 euros with the lender, but do you need 1,500 euros? Then you only pay interest on the EUR 1,500. Keep in mind that you pay interest each day at the credit opening. This interest or Annual Cost Percentage (APR) is also a lot higher than the interest on a personal loan. You do well to keep the period in which you withdraw money through the credit gap as short as possible.