LCL offers the whole range of banking products. As such, the bank offers loans and in particular LCL revolving credit. The latter makes it possible to face unforeseen events and punctual money needs. It completes the loan range and in particular the 1% LCL credit type operations. Let’s look at the particulars of this little credit together.
LCL Renewable Credit Solution
LCL offers, like the majority of banks, a revolving credit product. The latter is called LCL Renewable Credit Solution, which therefore makes it easily identifiable. It incorporates the main principles of revolving credit. Let us recall the main principles of this small loan, before going into detail on the formula proposed by that of the bank.
What is revolving credit?
Revolving credit is part of the family of consumer loans. It is almost always a small loan, the amount of which rarely exceeds 3000 $. Revolving credit gives access to a sum of money previously defined, usable at any time without having to justify. In order to be able to benefit from this reserve of money, it is necessary to fill in a file beforehand by attaching the necessary supporting documents, and to submit it to the lending organization for validation. Each lender has their own conditions for accepting revolving credit. Note that as the name suggests, the amount awarded is renewed as it is reimbursed. The “available” money finally makes it possible to obtain an express transfer: a revolving credit without proof.
Revolving credit is particularly suitable for small ad hoc cash needs, and in particular to deal with unforeseen events. It is indeed necessary to be careful about its use because the rates charged are generally quite high compared to a more conventional credit such as personal loan or car credit. Note that the LCL revolving credit costs nothing if the amount of money made available to the customer is not used.
What to remember about revolving credit
- Reserve of money fixed on the contract and usable at any time.
- Revisable APR rate, indicating that it is likely to change with each new use.
- The rates are generally high, including in the case of the revolving credit LCL.
- Amount: generally less than the 3000 $ credit
- Repayment period: always less than 36 months when the amount does not exceed 3000 $.
The specifics of LCL revolving credit
- flexible monthly payments
- possibility to postpone up to 2 monthly payments per year. The carry-over must not take place on two consecutive monthly payments. This option is commonly called ” monthly break “.
- possible modification of the amount of the monthly payment, upwards or downwards. The modification must be accepted beforehand by LCL.
- total or partial prepayment possible at any time and free of charge.
- optional borrower insurance
Credit insurance is not required. LCL revolving credit offers two options:
- Classic insurance covering death, total and irreversible loss of autonomy and sick leave
- Classic insurance + job loss
The cost of insurance is added to the monthly payment of the loan and can have a significant impact on the total cost of the loan. In return, it will temporarily suspend the repayment of the credit, or even stop it definitively in the event of activation of the insurance.
- ” Flexible cash flow ” option
This option, which is specific to LCL, allows automatic transfers of its revolving credit LCL to its current account in order to better manage difficult ends of the month.
- Several ways to use your LCL revolving credit
It is possible to request a transfer to your checking account via the Internet, via your smartphone, via telephone or at an agency. To facilitate use, it is also possible to request a revolving credit online LCL (VISA). Like a standard bank card, the credit card can be used at all merchants and in automatic teller machines.
Should we subscribe to this LCL offer?
The bank regularly renews its offers and may even occasionally make specific offers to its customers. It is therefore important to compare the current LCL offer with the best offers on the market such as Cofidis revolving credit.
Note that this type of loan is mainly suitable for amounts less than a 1000 euros credit due to its fairly high rates, regularly of the order of 10% to 20%. The LCL revolving credit is no exception to the rule because, during our last statement, the revisable APR proposed for a 2000 $ credit over a repayment period of 28 months is 13.9%. For higher amounts, the personal loan or the appropriations affected such as the car loan or the work loan will be privileged. Whatever happens, it is essential to compare credit offers before committing.
How to take out an LCL revolving loan
Several means are available to the customer in order to take out an LCL revolving credit. Whichever option you choose, the first step will always be to define your need in terms of amount. From this choice will arise the monthly payment according to its monthly repayment capacity. Thereafter, it will be necessary to complete a credit request with more or less information depending on the data already available to LCL depending on whether the borrower is already a client or not.