Revolving credits may only be closed for extra spending space. Goodbank, the market leader for borrowing money, will make repayments compulsory.
Revolving credit? Relaying becomes the norm
Goodbank wants to move a large group of existing customers with a revolving credit to convert this into a personal loan that will be repaid. The lender has notified this to intermediaries who act as intermediaries for Goodbank loans.
Goodbank is also going to maximize the loan amount for new revolving loans at 15,000 euros. The monthly installment thereby becomes 2% of the credit limit. So new customers are also obliged to pay off.
The market leader for borrowing money puts a brake on the provision of revolving loans.
Flexibility requires self-discipline
With a revolving credit you can, in contrast to a personal loan, withdraw repaid amounts. This flexibility makes the loan product suitable as extra spending space or when things are not going well.
However, it requires self-discipline not to withdraw the amount that has already been repaid and to continue to borrow as much as possible. In addition, the interest for a revolving credit is flexible. This makes consumers vulnerable to interest rate rises.
This is one of the reasons that the money lending branch in 2019 comes with stricter lending standards for a revolving credit.
Only for extra spending space
Goodbank wants customers to choose a personal loan for spending purposes other than extra spending room (small amount, short period). They then receive a fixed interest rate and term and pay off the loan in full during the term.
The lender is aware that for some existing customers, the repayment obligation means that they cannot bear the monthly cost of the loan. They receive a reimbursement that reduces the debt. This reimbursement is based on the interest rate difference that has not been implemented during the term and applies to existing clients who were unable to switch.
Debt-free future or fall?
With this measure, Goodbank wants to ‘help its customers realize a debt-free future’. Customers with questions can visit a special Goodbank website.
Coincidental or not; this decision also comes after, among other things, the consumer program repeatedly paying attention to ‘usury rates’ with revolving loans from Goodbank. Previously Goodbank did not yet want to pay compensation to customers who could not transfer.