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When you repay a revolving credit, the capital initially made available to you is reconstituted as you pay your monthly payments. But it is not suitable for all projects. It is not possible to buy a property with a revolving credit.

How does revolving credit work?

Several terms can be used to designate a revolving credit: "revolving credit", "permanent credit" or "reconstitutable credit". The revolving credit is part of the consumer credit, and can not be used for buy a property.

The amount awarded depends on your income. The contract can be renewed from one year to another. You are not required to use the entire amount granted under a revolving credit. In addition, you do not have no proof of purchase to provide. The credit agreement provides for a period of time beyond which the revolving credit is closed if it is not used.

What to finance with a revolving credit?

The use of a revolving credit requires a perfect management of its budget. Permanent credit can not be used to finance a real estate project in the long term (construction, purchase of housing, acquisition of land...)

It can be used for various expenses, deal with an unexpected event, buy furniture or finance small jobs. In view of the very high interest rate of revolving credit, however, it is better to plan your expenses or choose another type of loan cheaper.

With which type of loan to buy a property?

Many real estate loans exist to buy or build a home. This can range from standard home loan to official loan, through various assisted loans such as the PTZ, Housing Savings Loan, or the loan agreement.

Also know that these loans can be used for work (to improve the energy performance of a home for example). In some cases you benefit from tax credits.

Before you start, make sure to estimate the budget for your project. Ask at your bank for real estate loans you can claim.

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