Quick loans are also popular with young people – for a variety of reasons – so that the first credit can be obtained free of charge, and so – the speed at which it is issued is as fast as possible – 15 minutes. Young people in financial difficulties, when they need a smaller or bigger cash loan – often do not hesitate and take the opportunity to apply for a loan online. But this borrowing opportunity is now denied.
As of February 13, 2013, fast loans will no longer be issued to 18- and 19-year-olds – 12 non-bank lenders are members of the Latvian Association of Non-bank Lenders (LNKA). This age limit will remain in effect as long as the State establishes a single credit register – and – it is possible to assess the solvency of each individual.
Fast loans companies were able to get the loan
Until now, fast loans companies were able to get the loan they needed quickly and easily for young people who had just reached the age of 18. The loan was also granted to unemployed young people who, at 18, still sit on the school bench.
So far, the number of 18- and 19-year-olds who have received a quick loan is low among all borrowers. However, it is these borrowers who may have difficulty repaying the loan because their income is often relatively low or non-existent – young people are supported by their parents’ wallets.
Failure to pay the loan on time can lead to a large increase in the loan amount, with interest being charged. In such cases, the young person is unable to “extinguish” his or her own credit obligations, and this puts his or her credit history at serious risk.
When choosing a lender, pay attention – “Responsible Lender” – a hallmark of credit companies – they are lenders who will temporarily stop lending to individuals between the ages of 18 and 19 – until they have the opportunity to evaluate their income.
If the borrowing has been reckless and the young person has not assessed his repayment options, it may be that the credit granted free of charge becomes a paid service. To avoid such situations – as of February 11, instant loans will not be temporarily granted to young people aged 18 and 19 – they will be available only to residents of Latvia who have reached the age of 20.
Choose a Responsible and Secured Lender! Check out the loans offered by the most popular credit companies here in the credit comparison chart. Before you borrow – evaluate your financial situation – your chances to repay the loan.