Tovar can be compared to a credit card, but in this case the payment card is not issued. The credit limit is set individually for each customer and you can see the amount, amount of money spent, payments to be made and other information in your user profile. You can transfer the available limit at any time to your bank account and use it at your discretion – withdraw it from an ATM in cash or pay for goods and services via the Internet.
EXAMPLE – Anna has a credit line of $ 1,000. Anna spends 300 USD buying a refrigerator. Anna will have to pay a commission and / or interest on the USD 300 spent instead of the total USD 1000.
Some companies offer new clients an interest-free period, ie the option to use interest-free loans for one month or more. It is similar to a credit card, where you do not have to pay interest until the end of the month when you repay the used credit limit. Banks have a long history of this practice and non-bank lenders are increasingly seeking to follow credit institutions. The main difference is that the credit card is a real, physically tactile payment card, but the credit line is only visible on the Internet. It is important that you do not have to specify for what purposes you plan to use the money.
What do I need to get a credit line?
Credit lines or overdraft are issued to individuals on similar terms as any quick credit . You need your bank account, your mobile phone, your email, and your age, income, and credit history (see below). To qualify for the service, you must:
- choose a lender (see above);
- fill out the questionnaire;
- Confirm user profile (transfer 1 cent to lender’s bank account)
- get approved and transfer the money to your account.
Prior to granting a loan, the customer’s income, credit history and past collaboration are checked. It usually takes no more than 20 to 30 minutes to evaluate your application and the credit limit is approved within approximately one hour (working hours). As the maximum amount for this service tends to be higher, you should be aware that in case of doubt you will be required to send a bank statement for the last three to six months.
Those with an income threshold below the minimum wage must be aware that the application is likely to be rejected. This is not uncommon, as customers are required to earn at least $ 500 a month after tax in order to receive an Swedbank overdraft. Certification from the SRS (State Revenue Service) or SSIA (State Social Insurance Agency) from a private person is no longer required, as this information is also available in electronic databases with the customer’s consent.
It is positive that you can apply for a credit line on the Internet from the age of 18, but more often from the age of 20. The maximum age limit for this type of loan is usually between 65 and 80 years. New entrants seeking to attract new customers tend to show more willingness. It is virtually impossible to get a loan without a formal income and job. The income, pension and benefits of a self-employed person can be treated as income in such cases and this significantly increases the number of potential borrowers.
What are the benefits?
The credit line is available on an ongoing basis and can be spent when needed. There’s no need to worry about borrowing at an unexpected moment.
- Beneficially, interest is payable only on the amount of money actually spent. The commission and interest are mostly lower than other online loans
- Discreetly – no purpose of spending money is required.
- Fast – application is processed and approved in less than an hour (working hours).
- Flexible – Spend as needed. Pay for what you spend. If you want to pay back faster and reduce your interest payments. Repayment term up to three years.
- Extra Security – Approving a credit limit guarantees that the loan will be available when you need it. There are no fears that a loan application might be rejected. You can use it at any time of the day.
What are the purposes of the credit line?
The motivation and reasons to use this service are different for everyone. For individuals, such services are an additional guarantee in today’s uncertain lifestyle. Knowing your credit limit, you should not spend it unnecessarily, but only when you really need to and are confident that you will be able to repay. If you run out of money a few days before your salary, you will know that the worst case scenario is always Plan B. Reasons to borrow can be anything from buying, building and repairing, paying for health and medical services, education or airline tickets, etc. a credit line may be granted to balance cash flow and to guarantee working capital in emergency situations requiring urgent payments for goods and services.
Before applying for a loan that you see in advertisements in the mass media, it is worth researching Credit and figuring out which offer is currently more profitable. It would not be a bad idea to find a lender that gives new clients some special commission or interest-free discounts. Latvian law also guarantees that you can always withdraw from the contract, and within the first 14 days you have the right of withdrawal and to withdraw without any justification, by refunding the amount spent, in accordance with the terms of the contract.
The maximum repayment term is three years, but you can repay at any time. It is important to keep in mind that a longer repayment term automatically means that you will pay more in percentage and that it is not worth the debt. Because the interest rate on the credit line is lower than other online loans, it is possible to plan higher and more expensive expenses and purchases.
Laying Credit Line Differences From Consumer Credit
- In the long run, a credit line is likely to be more profitable than using a consumer credit, provided you don’t know exactly who to spend the money on. Interest rates for both services tend to be similar, but when you choose overdraft services you gain much more flexibility and also save money as a result. Consumer credit interest is payable on any loan you receive, even if you do not spend it all. This means that if you get a consumer loan of $ 500 and spend only $ 200, you will pay interest on all $ 500. On the other hand, a credit line of 1000 USD only represents your credit limit and if you spend 200 USD from your limit, you will only be charged interest for these 200 USD. It should also be borne in mind that in many companies the line of credit may be used from time to time without interest or at least free of charge. Finding such deals is not always easy, so it is worth following our news on the Internet.
Differences in credit limit from fast loans
- We have already found that each of these types of loans is for different purposes. A quick loan on the Internet is for short term use only. The first time you can get it is free of commission and interest free for up to 30 days, but in the long run you can get and use a credit line on more favorable terms. The credit line, on the other hand, has lower interest rates, a longer repayment term and a guaranteed borrowing opportunity after the application is approved. However, for the most part, fast credit services are superior in terms of speed because they are generally easier to obtain and you can get money in your account faster than choosing an overdraft.
Credit line – the most important thing to know about it
The credit line offers many advantages and is becoming increasingly popular in Latvia. Many lenders, incl. Companies like Progline Credit, Serratum, Creditfast and others are increasingly aware that long-term customers are better off in the long run. As a result, there is a shift from short-term loans to consumer loans and credit lines. As the service can be applied for online, it is especially suitable for people who are on the cutting edge with the latest technology and have sufficient material. This approach allows you to compete successfully with banks, and the experience gained from working with fast credit enables you to ensure a fast and high quality loan application processing and lending process.
This service is a niche product for individuals who are unwilling or unable to make savings and rely on borrowing at a difficult time. Loans are available in a variety of ways, but it is good to take no last-minute action and have confidence in Plan B. As long as the money is not spent, the lender will not have to pay anything.
Before borrowing, read the terms of the contract. Penalty charges and / or penalties are payable in the event of late payment. Debt collectors and the court can be involved in recovering money. Similarly, entry in debtors’ records may be made, which makes it more difficult to borrow in the future. Borrow responsibly.