How revolving cards work

The revolving card represents an intermediate solution between a normal credit card and the provision of an immediate personal loan . In fact, the "revolving" payment, or payment in installments, exploits both the possibility of postponing payment from the month following the month in which the purchase was made, and the subdivision of the total expenditure incurred in several repayment solutions.



However, while the postponement of the payment takes place free of charge, the payment of the various installments takes place with the application of interest rates , which on average are higher than those imposed on personal loans .

As for the "balance" credit cards, also in this case you must have a good credit reputation in order to obtain them.

How revolving cards work



HOW REVOLVING CARDS WORK
This type of card has been widely disseminated, as it is a payment method that allows you to quickly get the extra money to spend, without having to embark on the procedures and time necessary to obtain financing , leaving other freedom of choice both on the sums available from time to time (with the exception of the limit imposed by the ceiling), and also on the same type of destination (ie by type of purchase, or in case of cash advance). In particular, they can be grouped into two categories:



revolving cards with interest rate applied to the entire sum
these cards can in turn be divided into two categories, ie those that apply the expected interest, regardless of the expenditure threshold and revolving cards that provide a fixed sum of reimbursement of the share of interests, which can grow according to the amounts with a logic of brackets;
revolving cards with a minimum interest threshold
these cards provide for a sum of expenditure below which the installment of interest is paid, while above it is an almost zero-rate loan.
WHAT ARE THE ADVANTAGES AND DISADVANTAGES OF REVOLVING CARDS?
The advantages are easy to understand, as there is a payment method available that allows you to incur high costs, then repayable in installments of a fairly modest amount.

But it is precisely the accumulation of various small installments that can create difficulties in being able to determine the impact on their repayment capacity, creating a monthly credit card balance gradually higher. In case of installments, these go to participate in the determination of their level of indebtedness , causing difficulties in the event that you have to request a loan.