What Is The Maximum Amount Of Revolving Credit?

 

Formerly called revolving credit, revolving credit is a loan that allows borrowers to benefit from funds as they see fit. While this type of financial product offers a great deal of freedom to its users, it does have some limitations. Thus, a maximum amount for revolving credit has been set by the Consumer Code.

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  1. The maximum amount of revolving credit
  2. Ancillary costs not exceeding the maximum amount of the revolving credit
  3. Why a maximum amount of revolving credit?

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The maximum amount of revolving credit

 

 The maximum amount of revolving credit

 

The maximum amount of the revolving credit is $ 75,000. Previously, it was $ 21,500, but it was raised during the credit reform made by Christine Lagarde in 2011.
This larger amount allows for more expensive purchases.

In addition, the repayment period varies according to the amount of revolving credit :

  • It is 36 months when the total amount of the loan is less than or equal to 3 000 $
  • It is 60 months when the total amount of the loan is more than 3 000 $

Note that from $ 1,000, the lender is obliged to provide a traditional credit proposal so that the borrower can choose the offer that best suits his needs.

Ancillary costs not exceeding the maximum amount of the revolving credit

 

 Ancillary costs not exceeding the maximum amount of the revolving credit

 

The maximum amount of the revolving credit does not take into account all the ancillary costs that may be added to the loan offer. Indeed, it is not uncommon to see in particular file fees increase the amount due by the borrower. It should be noted, however, that some financial organizations include them in the total amount of the loan.
To all this can also be added the amount of insurance for credit.
Malynx tip!

Insurance is optional but strongly recommended, especially for people whose financial situation is a bit weak.

Although these insurances can sometimes be a bit high, they can however protect borrowers in case of illness, death or dismissal.

 

 

Why a maximum amount of revolving credit?

 Why a maximum amount of revolving credit?

It is the Consumer Code which governs all the conditions and other modes of operation of revolving credit as of all types of consumer credit. If there is a maximum amount for revolving credit , it is precisely for this type of loan to continue to reach the limits of consumer credit and thus enjoy their benefits.

Indeed, to qualify as a consumer credit, a revolving credit must be a minimum of $ 200 and up to $ 75,000.

If the funds lent exceed this amount, the credit is no longer protected by the Consumer Code and in particular by the Srivener law which offers:

    • A withdrawal period for the borrower that extends over fourteen business days from the signing of the loan offer. This period was previously only seven days,
    • Great clarity in the loan agreement,
    • The Consumer Code also offers a period of fifteen working days following the date of issue of the revolving loan offer to allow reflection and comparison of other credit offers.