Consumer credit

Consumer credit is a relatively new type of short-term credit for Latvia. You can use it to borrow a certain amount that you can spend at your own discretion – for a purchase, travel, tuition, etc. This article will look at common creditor claims for consumer credit, as well as tips on how to get more (and lose less), when you apply for a consumer credit.

What do you need to know when you want to take a consumer loan?


First, you can save when you apply for a consumer loan by simply comparing offers. This can easily be done on the lenders’ websites, but keep in mind that not everywhere is transparent interest rates and sometimes they are only given after evaluating your ability to repay the loan, etc. Because consumer loan interest payments and maximum loan amount depend on your Monthly income, if you have lower monthly income, it may be more profitable to take a fixed interest rate loan, but if you have a higher income, you are “in love” with the banks, so it is safer to lend and hence the interest rate goes down.

Second, always look into credit processing fees. It seems that the difference of five dollars in the price of the design does not matter if the other lender has a lower interest rate, but the design fees are not always the ones found in the documents. Additionally, there may be additional fees associated with setting up an account with a lender if you have not yet used the services of a lender. And such costs are not always so small.

Finally, keep in mind that there are different ways to pay your loan. Payment may be degressive or uniform; in the first case, the interest paid back will be lower, and the first payments will be higher, so you will pay less each month. In contrast, the single payment method allows you to plan your budget more freely and predictably, since the monthly payment does not change, but in this case you will pay more in interest payments.

What does it take to get a consumer loan?


● Stable and regular income;

● Good credit history, or at least data on it;

● Most lenders lend only from the age of 21;

● Passport required;

● Data on your income for at least the last 3 months;

Make a purchase that you will not regret


Consumer credit is a good option if you want to make a purchase that you will not regret having to limit your finances for a while. Interest rates on consumer loans are higher than on almost all long-term loans, but they are not astronomical and, in most cases, even advantageous considering that it is a short-term loan. If you borrow responsibly, you will only gain by using a consumer loan.