Opening of loan: advantages and disadvantages

Legally, an opening of loan is the making available to a consumer of a certain amount of money that he can use immediately or in a deferred manner , in whole or in part.

The advantages of flexibility

It can be done with or without a credit card. This allows you, for example, to deal with the situation without having to submit a new request.

The advantages of flexibility

The opening of loan offers greater flexibility in managing your budget and has many advantages:

  • a reserve of money available at any time to cope with any unforeseen events , without having to enter a new file with your lending organization
  • no obligation of use : if you do not finally draw in your provision, it is returned to you at rate 0
  • secure payment in Belgium and abroad, as well as for your online purchases
  • the repayment of the loan is done in proportion to the amount spent the previous month
  • the possibility of adjusting the amount of the cash reserve if necessary (subject to acceptance by the loan society)

The disadvantages of budget management

Entering a revolving loan is quite simple in itself, as far as your finances allow, but it can be difficult for some to control their budget. People may find themselves over-indebted because of their loan cards.

Indeed, the provision is available permanently, which can encourage compulsive shopping . So be careful, because at the end of the loan agreement, you will have the obligation to repay your entire reserve. This means that the balance of the loan must be reset.

Also be sure to choose your formula if you decide to apply for a revolving loan. Some will suit you better than others, depending on your buying behavior. There are three forms of loan opening:

  1. credit card
  2. Money reserve without card
  3. Account overrun (the bank negative)

Would you like more information on opening loan? Find out how to apply or send us your loan application online .

Leon Kaplan Author