Revolving credit or personal loan

Identify your needs

Identify your needs

Before comparing the credit proposals available on the market, the potential borrower must first identify the use of the amount of money he wants to receive:

  • if this sum is used to finance a defined project such as an apartment renovation, the purchase of a car or a trip, it can turn to “traditional personal loans”,
  • If this money can be used in an undefined way or for multiple expenses, then it is preferable to move towards “revolving credits”.

The flexibility of revolving credit

The flexibility of revolving credit

The revolving credit (formerly known as a cash reserve or credit reserve) allows the borrower to have available or borrowing money that can be used without proof of use. It is an available credit, on which it can make drawings without proof of use, subject to sufficient credit, and subject to acceptance of the application by cofinoga. As long as he does not use it, it does not cost him anything. If he uses all or part of this sum, he must repay it in monthly installments of an amount also defined at the beginning. This revolving credit is gradually being reconstituted, which is why this type of credit is also called reconstitutable credit.

It is possible to use the revolving credit for the purchase of current consumption, expenses for specific occasions (back to school, holidays), the purchase of computer equipment or the purchase of decorative items.

However, it is not recommended to use your credit to pay your rent.

Personal loan:

Personal loan:

If the proposed purchase is determined, such as the purchase of a vehicle, a kitchen, a home theater, etc., it is better to opt for the personal loan. And for even greater security, choose conventional credit, which in some cases allows the sale to be canceled if the borrower does not obtain the financing.

In summary, if you have a defined project, opt for the personal loan, if you do not know yet to which purchase will be allocated money or if you just want to have an available amount “just in case”, opt for the revolving credit.