The revolving cards, as we have already mentioned, work like normal credit cards and consequently fall into the category of so-called consumer credit . Their possession, in fact, allows the holder to use a small credit line , or a certain amount of money that can be used to make his own payments and which will have to be repaid later through a payment set in monthly installments.
They allow you to withdraw cash at ATMs , just like a normal credit card, both those scattered along the peninsula and abroad, to recharge your SIM and make the purchases you want, both at physical stores and on e-commerce . The credit line available to the user depends on its creditworthiness , or on the ability of the user to meet the debt incurred. The factors that determine it are in particular the income or assets available to it and the relationships previously maintained with the credit system, or its possible registration in a list of bad payers .
The advantages and disadvantages of revolving credit cards
However, it should be emphasized that precisely during the crisis that followed the bursting of the Subprime mortgage bubble, this type of financing has become increasingly popular and widespread in our country. The easiness of obtaining it and the possibility of customizing the amortization plan have been particularly easy to spread, drawing it on your own specific needs. For example, you can choose to repay the amount due in a single payment or to pay the installments provided for in the repayment plan month after month. Once the loan has been repaid, the credit is automatically regenerated.
Another not inconsiderable advantage is that deriving from the fact that if you intend to proceed with a purchase you can get a sum of money on loan without having to proceed from time to time to start up a new loan contract , thus having to provide the necessary guarantees and open a new practice for each purchase, with what may follow in terms of ancillary expenses.
The advantage that can be realized in the possibility of making several purchases in installments by paying a single periodic installment must be taken into consideration, a quality that stands out in particular foreshadowing the lighting of a loan finalized for each of the purchases which would force the user to provide for separate payments.
If these are the most obvious advantages, however, the possible contraindications should be highlighted, starting from the penalty payments due in the eventuality that the installments foreseen in the repayment plan are delayed, which are particularly high. A mole that is added to interest rates that are quite expensive, as indeed hinted by a recent study prepared by the Bank of Italy, according to which they can reach up to 24%. Given the policy pursued by the European Central Bank with quantitative easing, which has gradually eroded the cost of money, bringing it close to zero, this is a disadvantage of no small importance.
Finally, it should be remembered that each cash withdrawal requires the payment of a fixed amount and an addition calculated as a percentage . A series of contraindications that should certainly be taken into consideration before signing a revolving credit card.
Revolving credit cards: inquire online
There are more and more revolving credit cards available on the market. Precisely for this reason, before adopting one, it would be better to inquire to try to understand what the most convenient proposals could be. This can be done in particular by consulting online sites that offer news and guides that can better target consumers and encourage them to avoid the pitfalls proposed by an underestimation in this regard.
In addition to finding information, consumers should also try to exploit the advantages offered by the presence on the web of the so-called comparators , that is those portals that aim to compare market proposals in order to indicate to their users those able to mix at better convenience and effective quality.
Revolving credit cards: the best in circulation
What are the best online revolving credit cards currently in circulation? The first report in this sense is the responsibility of BP Bank , thanks to which the user can pay the balance or revolving thanks to an annual credit of 3600 euros. The annual fee for the card, which runs on the MasterCard circuit, amounts to 37 euros and can be requested either simultaneously with the opening of the account with the institution or at a later date.
Another proposal that has attracted the attention of many consumers is FX Gold , the credit card proposed by Unicredit that allows the user to count on a credit up to 5 thousand euros and to change the payment method according to personal needs, after payment of an annual fee of 90 euros. Equipped with Chip & PIN technology, it allows payments to be authenticated by entering a PIN instead of a signature, a method that exponentially reduces the risk of fraud and cloning.
Finally Corta Bank , the proposal by Intesa San Paolo that does not include activation costs and the payment of a fee starting from the second year, of 60 euros. The 3 thousand euro credit line is accompanied by the possibility of controlling site or app expenses and the free insurance coverage for purchases on the web, provided by ISA Finance .
Revolving credit cards are designed to meet the needs of consumers as if they were small loans. You can find other solutions in our specific article on microloans.