Short-term loans
These are loans that are characterised by their being quick to obtain, but which tend to be more expensive than other borrowing options.
You can usually apply for a loan of this type by filling out a form and providing a piece of ID, a utility bill, and a bank account number.
Advantages:
- Confidentiality and the simple application process
- Immediate response and payment
- Flexible repayment
Disadvantages:
- Interest is usually higher than for personal loans.
- It is often necessary to take out insurance to cover possible default in certain cases.
- You should compare conditions with other similar offers.
- Check the annual percentage rate (APR) to find out how much the loan will actually cost.
- Read and make sure you understand the terms of the loan agreement before signing it, since you have to repay the amount borrowed, together with fees and interest, on time.
- Budget carefully to avoid possible arrears or excessive debt.
FREQUENTLY ASKED QUESTIONS
What happens when you ask for finance when buying a product or paying for a service?
Read answeraboutWhat happens when you ask for finance when buying a product or paying for a service?
Are all lenders supervised by the Banco de España?
Read answeraboutAre all lenders supervised by the Banco de España?
