Renewable Credit Solution, by LCL
LCL, one of the oldest French banks, is also present in the consumer loan market. Like its sisters (or competitors, everything depends on the point of view…), it offers its customers a revolving allowing them to face hard knocks or to be able to respond favorably to the demand for a compulsive purchase.
How does the LCL Renewable Credit Solution work?
The LCL revolving credit is presented as a classic cash reserve. An available sum, between $ 500 and $ 21,500, is made available to customers, depending on their repayment capacity. If necessary, it is possible to use all or part of the available sum. Subsequently, the reserve is reconstituted as the monthly installments are repaid.
Regarding these deadlines, the client can adopt two positions; either he accepts the amounts fixed by the Bank, or he fixes these amounts himself, according to his possibilities. Be careful, however, the lower the monthly payment, the longer the repayment, and the more expensive the revolving ...
However, let us not deny that it is this flexibility which makes the success of this type of product. Firstly, because it prevents us from finding ourselves without anything in the event of the unexpected, and secondly because it can be easily adapted to our resources.
Concerning the use of the sum available strictly speaking, there are again two possibilities. You can make a transfer of all or part of the money available in your checking account, in anticipation of a large purchase for example. But you can also use the Visa card backed by revolving credit. Exactly as is the case in other banking establishments.
In this regard, two different operating modes should be noted between the money reserves offered by funding organizations and those available to banking establishments. They are still able to associate the line of credit with a credit card . What the former are unable to do.
How much does the LCL revolving credit cost?
As is the case for all market players, the LCL does not charge fees for the administration or opening of the revolving credit account. As long as the money is not used, no fees can be charged or debited. It is then that it can get tough. The problem with the LCL is that we won't have the rate schedule. Only one example, referring to the loan of $ 3,000, repaid over 3 years, allows us to see a rate of 16.685% which can be revised and excluding optional insurance. But what about higher amounts, or longer durations?
Anyway, prepayments, partial or total are always accepted and always free of charge. The faster a reserve is replenished, the less it costs, and the faster it can be reused.
In short, the LCL offers exactly the same type of product as the Bank Popular , the Savings Bank , the Bank Postale or even the Crédit Agricole ; a reserve of money, associated with a credit card, via a special option allowing payment and withdrawal in cash or on credit. Between the different banks, only the rates change a little. But, just as Crédit Agricole had pleasantly surprised us with the lowest revolving credit rate observed, its subsidiary, LCL, is unable to provide us with its scales. And this, in spite of its complete developments on its product.