Continuous credit

With continuous credit, you can borrow money at any time up to a pre-determined maximum amount known as the credit limit.

Each time you repay the loan after reaching this maximum level you can borrow funds again up to the credit limit. This means that a continuous credit can be a convenient option if you do not need the whole sum at once or do not know exactly how much credit you need.

In most cases, each month you pay a fixed percentage of the credit limit to cover the loan repayments and interest charges. For example, if you have 2,500 euros continuous credit and the agreements states that you have to pay two percent of the credit limit each month, this means that each month you will pay 50 euros to cover repayment and interest.

Interest rate
With continuous credit, the interest rate is not fixed, so it can rise and fall. In general, if the interest rate rises, your total monthly payment will not rise, but the interest payment component will be greater than the loan repayment component. Conversely, the loan will be repaid more quickly if the interest rate is lower.