2.2. National Bank Thoroughbred Flexible (revolving credit)

A National Bank Thoroughbred Flexible loan is an all-in-one home loan and transactional bank account that uses surplus funds to help reduce interest costs and pay off the loan sooner. It works like an overdraft. You can re-borrow funds up to your loan limit, and you can make lump sum repayments at any time.

How revolving credit works

A revolving credit loan is a transactional account that is very similar to an overdraft. Some revolving credit loans have a reducing loan limit which will amortise (reduce) in the same way a normal table loan is repaid. Other revolving credit accounts are non-reducing and therefore similar to interest only loan facilities. Interest is charged on the daily outstanding balance.

By paying your salary (and any other income) directly into your revolving credit loan you immediately lower your loan account balance and the amount of interest you pay.

If you use your credit card for your everyday purchases, you can keep your revolving credit account balance lower for longer. To maximise the benefit, you must always pay your credit card balance in full on the due date.

See here for more information.

Revolving credit is best suited to

Revolving credit suits customers who like to actively manage their finances on a day-to-day basis.

They can benefit by:

Directly crediting their income to their Flexible home loan, and using it in conjunction with up to 55 days’ interest free credit on their credit card. This can save a considerable amount on their overall interest costs,
Having the ability to repay the loan at any time,
Having the ability to redraw up to the loan’s limit at any time, like an overdraft, without going through a separate application and approval process.