Revolving Credit in Utrecht

Revolving Credit

Revolving credit offers residents of Utrecht a flexible credit option with a credit limit from banks or lenders. Withdraw funds when needed, repay and reuse – ideal for unexpected expenses in the city, such as repairs to your Utrecht home. However, the variable interest rate requires careful management to minimise extra costs.

What does revolving credit mean for Utrecht?

With revolving credit, the lender makes a credit limit available, typically €2,500 to €50,000, based on your financial situation and BKR check. In Utrecht, banks rigorously review your credit history. You can withdraw flexibly via app or card, repay a monthly minimum (e.g. €150 on a €10,000 limit for a new bike), and the amount becomes available again. Unlike a personal loan, it continues until terminated.

Legal frameworks for revolving credit

Revolving credit is governed by the Financial Supervision Act (Wft) (arts. 4:200-4:287) and Civil Code Book 6 (arts. 6:237-6:250). The European Consumer Credit Directive requires an ESIS document detailing interest and costs before conclusion. Up to €75,000, unreasonable interest rates are prohibited (art. 6:237(2) CC). AFM oversight ensures compliance; for disputes, you can turn to the District Court of Utrecht in Utrecht.

Comparison of revolving credit with other options

Flexibility with variable rates – see table for Utrecht context:

Read more about consumer credit and personal loans in Utrecht.

Rights and obligations under revolving credit

Rights of consumers in Utrecht

• 14-day cooling-off period: Free withdrawal (art. 6:230m CC).
• ESIS information: Including APR (art. 6:230g CC).
• Early repayment: Max 1% fee (art. 6:239 CC).
• No unreasonable penalties for arrears.

Your obligations

• Repay at least 2% of balance + interest monthly.
• Provide accurate income details.
• BKR registration for new credits.

Lender obligations

• Creditworthiness assessment (art. 4:250 Wft).
• Monthly statements of balances and interest.
• 1-month notice period (art. 6:249 CC).

Utrecht case examples

Example 1: The Jansen family from Overvecht in Utrecht withdraws €4,000 from a €15,000 credit line for kitchen renovation. At 8% interest: €32 interest + €80 repayment p/m. Later, they make extra repayments and withdraw €2,000 for a city trip – flexibility, but accumulating annual interest.

Example 2: Mr De Vries from Kanaleneiland misses a payment due to unemployment. The bank offers deferral after discussion; otherwise, debt collection and BKR issues affecting a Utrecht mortgage.

Example 3: Ms Smit from Zuilen exceeds her limit (overdraft 14%). Via the annual statement, she complains to the bank and AFM; interest corrected.

Tips for residents of Utrecht

Avoid pitfalls:

1. Compare: Via Independer or AFM register.
2. Check BKR: On bkr.nl.
3. Budget: Only withdraw what's needed; extra repayments save money.
4. Keep documents: ESIS and statements.
5. Seek help: At Het Juridisch Loket Utrecht, Utrecht Municipality debt assistance or District Court of Utrecht.
6. Alternatives: Saving or personal loan.

Related topics: BKR registration.