The advantages of the silver reserve
If you need a little cash, and you request it from your bank, you can quickly find yourself faced with a choice. Indeed, between depreciable loans, overdraft authorizations, and cash reserves, there are many possibilities. On the sole condition, of course, that your advisor grants you these facilities. Which is not the easiest point to resolve.
In the case of small amounts, the amortizing loan is rarely used. The bank overdraft can be a solution, but it is often very limited, in time, and in ceiling. As a reminder, all banks adopt the same rule; if your account is overdraft for more than 30 consecutive days, it may be outright canceled. However, it is not always easy, in the event of passenger needs, to know the exact dates of receipt of money.
The flexibility of revolving credit.
In fact, revolving credit, or cash reserve, turns out to be the most appropriate solution. A sum is allocated to you, and you dispose of it as you see fit. This is the first advantage of a revolving. Indeed, in a depreciable credit, it will release all the funds to you before a deadline stipulated in the contract. In a revolving credit, you have the option of using only part of the available sum.
On the other hand, it is possible for you to decide on the repayment terms yourself. A reserve of money is reconstituted as and measurement of your monthly repayments. But nothing prevents you from repaying in one go. No penalty will be counted. The idea of early repayment therefore does not exist in this product.
Finally, once your revolving credit is replenished, you can still use it at your leisure. With regard to an amortizable loan, once the borrowed amount is repaid, you no longer have access to liquidity. In a revolving credit, yes. It is indeed a reserve of money. You are charged for the latter, but it remains available as long as you want. And the money is only charged from the moment it is used. A reserve of money free of any withdrawal will therefore not generate any charges.
Where can I find a reserve of money?
The other big advantage of revolving credit is that you can find it very easily. Indeed, it is not necessarily useful to call on your Bank to benefit from such a product. Department stores, for example, are associated with finance companies which allow the purchase of certain expensive products in installments. Often, these companies also offer revolving credits. Organizations like Cetelem, Cofinoga or Paydaynow are one of these companies.
A revolving credit, it is therefore the possibility of being able to benefit from a reserve of money in case of urgent need or of hard blow, without this not constituting thereafter an unmanageable monthly charge (as long as one use them in moderation). The permanent availability of funds also allows a form of psychological comfort. Because we know that we can type in the emergency reserve if necessary. And that alone is already a plus for our daily serenity.