The credit line is granted only to citizens of the Republic of Latvia or to those who have a permanent residence permit. When submitting a credit line application, it should be …
The credit line is granted only to citizens of the Republic of Latvia or to those who have a permanent residence permit. When submitting a credit line application, it should be assumed that personal identification documents may be required.
Also, the customer needs an email address, a bank account and an active phone number. It is possible to apply for a credit line not only in the bank’s branches, but also in the internet bank or on the websites of private creditors.
Credit line against consumer credit?
If we compare the credit line with consumer credit, then these two types of loans are quite similar to both their interest rates and repayment terms, and even the loan amounts that can be obtained. But of course there are also some differences. The biggest difference is that the consumer loan has to determine the total amount of the loan at the beginning of the loan, but you can borrow the credit line in installments until you reach the maximum limit.
And this borrowings are very beneficial because the customer has to pay interest only on the amount of money actually received. This means that if you apply for 1500 Euro but only receive 200 Euro, the interest will be paid not for all 1500 Euro but 200 Euro, which in turn means a lot of savings! Basically, a credit line is more profitable if you don’t really know what your expenses will be,
Credit line against quick loans?
If we compare the line of credit with quick loans, it is immediately apparent that both of these services are quite different and the only thing they have in common is that they are mostly issued by non-bank creditors.
The credit line has lower interest rates, longer repayment terms, higher borrowing amount, and generally much better terms. But quick loans are basically possible quickly and it is also the main advantage of these loans. That’s why I would definitely choose this credit line, because a little while you can get a much better service.
Why are such services being created?
The credit line and credit limit have grown significantly over recent months and years, and this is because non-bank creditors are slowly trying to move towards longer-term lending and shifting from short-term loans to something more similar to consumer credit. But to compete with banks and provide better services to their customers, these companies are constantly trying to think new ideas. And the credit line and the credit limit are both such services that have come from this need to please customers and overtake the big banks in Latvia to get more profit.
The credit line, for example, allows people to use Internet credits to the extent they need, not to borrow more than necessary and to increase this loan by up to 10 times the limit set by the credit institution. And because there is no need to go to the bank or take a new credit card, people can benefit from such a service, and not even the bank’s creditors are slowly moving in these directions. Longer-term credit commitments are much safer business than short-term loans, and while profit margins are not so high, such loans earn long-term profits and are not fast as in the case of quick loans and SMS credits.