Credit account 2019 – Account credits up to $ 50,000

Credit accounts have quickly become popular, which means that more and more people are choosing it as part of their everyday economy.

Very few people know what the exact meaning of a credit account is

credit score

Having a credit account online works like a mix between quick loans and a regular credit card, which you can use when you need to borrow money quickly.

When you make a withdrawal from your credit account, the credit is activated. The debt is then settled when the money, including the interest, is deposited back into the account.

Credit Account Facts

Credit Account

  • Free withdrawals from a credit limit of between $ 3000 – 20,000
  • Interest is only counted on the amount withdrawn
  • Flexible payback time
  • Fees are rarely added, but all costs are deductible interest rates
  • Refunds must be made with at least a minimum amount each month

You can see the credit account as a loan account from which you can borrow a certain amount of money each month. Let’s say you were granted a credit account with a credit limit of $ 15,000. This means that you have the opportunity to withdraw a maximum of $ 15,000 from this account during the month. However, these $ 15,000 will then be repaid, if you make full use of them.

If you do not withdraw from your credit account, you also do not have to repay anything.

Credit account can be seen as a more manageable alternative to a traditional sms loan. The difference, however, is that a sms loan can have a setup fee attached to it and also have a strict and, usually quite short, repayment period. The credit account offers you free withdrawals within a certain framework.

The interest to be repaid is only calculated on what you actually use the account and the repayment period can be very flexible. In other words, there are many benefits to having a credit account instead of taking a sms loan.

A credit account is not the same as an account credit.

It is easy to confuse these two with each other. However, credit is a completely different thing. Account credit is the margin the bank allows you to transfer your account with. You can have an account credit linked to your account, which then allows you to spend more money than you actually have in your account. The account credit is thus activated when, for example, you buy something that costs more than what you have in the account.

Credit account application

Credit account application

It is very easy to apply for a credit account and does not differ significantly from a fast loan with direct payment. The lender will ask you to fill in the details of the amount of credit you want to apply for and how big you want your first withdrawal to be. The application is then signed with BankID. Then your application is submitted for processing and any credit check / credit information, ie a UC. However, there are players in the market that offer credit accounts even without UC.

However, a credit account without UC is not something that everyone offers but differs on a case by case basis.

It may be wise to consider whether or not the lender is taking a UC in connection with your application. The risk with too many UCs is that it can adversely affect your creditworthiness, which can make it harder for you to get loans and credits in the future. This also affects other types of loans such as car loans, bank loans and mortgages.

In order to be granted the credit account, you usually have to fulfill certain requirements set by the lender. Of course, not all lenders make the same requirements, but first, you usually have to be at least 20 years of age and have a declared income. Other common conditions are that you must be debt free at Kronofogden.

Some lenders accept other requirements. As an example, it is enough that you are 18 or have a good ability to pay even if you do not have an income for the moment. Some lenders accept payment remarks. But as a rule, their risk-taking is offset, as they do with a higher interest rate on the credit account.

As you will probably notice when you start looking for lenders that offer credit accounts, there are a great many that offer both credit accounts and quick loans. If you are not completely familiar with how the various credits work, it can be difficult to know which option is most advantageous for you.

If you need to borrow, for example, $ 5,000, both a credit account and a quick loan can seem like good solutions. The short answer is that you simply have to choose the option that is the cheapest for you and because different lenders give you different terms, it is not possible to give a concrete answer on which option is the cheapest.

Generally speaking, however, the credit account is the most advantageous choice in this situation as no withdrawal fee is required and the repayment period is usually much longer than for the fast loan.

How to use your credit account

How to use your credit account

As previously mentioned, the credit account acts a bit like a hybrid between a quick loan and a credit card. You can withdraw from the account at any time as long as it is within your allowed credit limit. The loan you make will then have the nature of a loan, that is, the loan will be repaid including interest.

If you do not charge anything, you also do not pay anything. This is a big advantage with credit accounts – you only pay for what you actually use.

When you take out a quick loan, the loan is often regulated according to predetermined amounts. Some amounts may even be higher than what you actually need. However, if you take a “too large” loan, you still have to repay the entire loan and the associated interest. This is not the case with a credit account.

As for the repayment period of your withdrawal from your credit account, this is relatively flexible. However, most lenders require that you start repaying a minimum amount from the month after you made your withdrawal.

Note the difference here between a credit account and a quick loan. You should preferably pay the fast loan back in full already the month following the short maturity of the credit. Well, you have the option of repaying a larger amount than the requested minimum amount if you wish.

This usually leads to a lower cost as the interest rate has then been shorter than if you were to pay at the end of the term. In addition, some lenders offer an interest-free period, which pushes down the cost even more for you.

Interest-free periods occur for credit accounts but rarely for fast loans.

Example: You charge $ 6000 on the first day you have access to your credit account. The lender will now charge monthly interest for the first 15 days but after that your credit will be interest free until the end of month 2.

All lenders offering credit accounts usually also offer very favorable terms for the repayment period. Firstly, you usually get the opportunity to pay the amount over a longer period.

The duration of the repayment can depend mainly on how low the minimum amount for the repayment is. This can vary depending on who the lenders are and what terms are set for the amount of credit you used. For the most part, the repayment period is much longer for credit accounts than it is for quick loans.

Example: You are granted a credit of $ 15,000 in your credit account. At your first withdrawal, you charge $ 6,000 to use for a car repair.

When you receive the invoice for the withdrawal at the end of month 2, you pay the minimum amount (eg $ 1500) and choose that you want to pay the remaining amount. You then pay $ 1500 per month for the next three months together with a credit interest rate.

Compare offers

It is not easy to compare credit account offers. This is because each offer is basically unique.

Some of the things you can take a closer look at in your comparisons are the effective interest rate, the minimum monthly payment, if the credit runs without interest in the first month and whether payment remarks can be accepted.

But, isn’t the effective interest rate a bad measure of what a short consumer credit actually costs? Well, for fast loans, the effective interest rate is always directly wrong, but for a credit account it gives a more accurate picture of the cost of the credit. This is because the repayment period is much shorter for fast loans and the effective interest rate is calculated on an annual basis.

Credit account without UC

Credit account without UC

Just as you can borrow without UC, there are great opportunities to get a credit account without UC. However, whether you can get a credit account without UC or not depends on which credit information company the lender cooperates with.

It is not possible to get a credit account without going through a credit report, but credit information can, as is well known, be carried out by various credit reporting companies. UC, or the Information Center as they are also called, is thus not synonymous with credit information but is one of several companies offering these services.

Other companies include Creditsafe and Bisnode. If you get a credit account without UC then you will in any case be able to do credit information through another operator.

The reason why you want a credit account without UC is because UC saves your application in its register, which is reflected in your credit history. If lenders see that you have a lot of credit information in your name, they may begin to wonder why this is the case. With a credit account without UC you reduce the risk of this.

Costs

The credit account is advantageous in many ways, but there are some disadvantages too, such as high costs. Although it is an easy-to-manage product with flexible payback time, there are reasons to choose, for example, credit cards rather than credit accounts.

This has to do with the high costs associated with the credit account. The credit account usually has very high interest rates compared to credit cards, which is a major disadvantage. Although there is usually no cost for setup, withdrawals, newspapers and so on, this is a very costly form of credit.

In some cases, even the aforementioned costs occur in combination with high interest rates, which should be avoided as far as possible. Be sure to compare credit accounts and credit cards between each other to make sure you choose the best option possible.

If you are able to get a credit card, you should usually choose that option.

Laws and regulations

Some time ago, the law on certain business with consumer credits was introduced. The new legislation tightened the conditions for players in the consumer credit market. The new requirements rendered more stringent requirements for the lenders and also gave Finansinspektionen an increased influence regarding market surveillance.

Consumer protection was also strengthened by this and made it possible for you as a borrower to feel safer in the future when you take out loans or take credit.

Summary

A credit account is a new form of credit that is similar to a merger of a fast loan and a credit card. The credit account means that you have an account with a lender with a certain limit on how much money you can withdraw per month.

If you do not charge anything, it costs nothing. What you charge you will pay back over a longer repayment period. However, the credit account has a high interest rate compared to credit cards, which is a major disadvantage. At the same time, the credit account is usually free when it comes to withdrawals, newspapers and other fees.

You can get a credit account even if you have payment notes or no declared income, however, not all lenders offer this and it is also not something we recommend you take.

If you can take a credit card, we recommend that you choose the option over credit accounts as it is generally cheaper in view of the high interest rate associated with credit accounts.