Belgians are fond of revolving credit, a type of loan that provides consumers with a reusable sum of money, repaid through monthly installments. It is possible to obtain a revolving credit through various cards. Let’s explain.
Which Cards for Revolving Credit?
A renewable credit is an amount a store (or lending institution) grants you as a reserve. You use this money as you wish but are required to repay it in installments when it’s used up or almost so. The installments are generally fixed and include interest.
This type of credit is termed renewable because you can replenish your reserve. This type of revolving credit requires a credit card. Here are the compatible ones.
Credit Cards
Lending institutions often issue these cards themselves, linked to your revolving credit. It can be a MasterCard, Visa, or CB and works like a regular card.
Store Cards
This type of card is only issued by stores (large retailers, etc.). Therefore, you can only use it in the store that provided it or their partner stores. For example, if it’s a card issued by Vandenborre, you can’t use it at a competitor, nor can you withdraw cash with it. Many store cards are loyalty cards.
They can also be distributed by online retailers, like La Redoute. The store issues the card, allowing you to pay for your online purchases when you make them, or later. Similarly, you can pay the full amount or on credit.
Multi-Store Cards
These are born from collaboration between a lending institution and various stores, giving you more places to use them. Even if some stores are competitors, you can use the card with them if they are part of the partnership. They are generally subject to the same conditions as store cards.
