Beware, fast credit is not a Christmas present.

At times like Christmas, when there is a surge in the number of purchases, we might need some extra money to buy everything we set our hearts on.

Many firms are aware of this opportunity and launch their offers of fast credit. These are small loans which are usually granted immediately over the internet, by telephone and are even offered in person in shopping centres; applicants are hardly asked for any documentation and sometimes do not have the funds or the collateral needed to access financing from banks.

Obviously, loans so easily granted (immediate, not much paperwork, few financial requirements) clearly come at a price: on some occasions, they have to be repaid in a short period of time, at a very high rate of interest and/or with high fees resulting in an APR that’s astronomical, a true reflection of the very high price you’ve paid for the loan.

For all of these reasons, before arranging fast credit, it’s important to find out the amount you are really going to be granted, the repayments you will make and, especially, to be aware of the price you are paying for borrowing the money.

Using this calculator, you can work out the APR of a loan.

Lastly, you should know that most of the firms offering loans of this kind are not supervised by the Banco de España. In Spain lending is not an activity reserved only for banks.

If you want to check whether the institution offering the loan is supervised by the Banco de España, consult our Institutions RegisterAbre en ventana nueva (“Registro de Entidades”) and its agents.