Quick loans

Sometimes you need money suddenly: your car breaks down, an unexpected bill arrives or urgent repairs are needed. You can ask a bank for a consumer loan, but the review there may take several days. For urgent cases there are fast loans, which are arranged online and paid out within hours. Below we explain how they work, what they cost and when it is better to avoid them.

What is a fast loan

A fast loan is a small loan for individuals that is arranged online and paid out quickly. You can apply from your phone or computer without leaving home, and the borrower check is automated. Such loans are usually issued without collateral or guarantors.

How quickly you get the money

If your application is approved, the money often arrives in your account the same day, and with some lenders within minutes. The timing depends on the lender and your bank: if your bank supports instant payments, the transfer arrives almost immediately. If your application is approved late in the evening, at the weekend or on a public holiday, the money may only arrive on the next business day.

How much you can borrow

Fast loans are most often issued for amounts from 100 to a few thousand euros. The minimum and maximum amount and term are shown on each lender’s card in the catalogue. Lenders usually approve a smaller amount for first-time customers, and the limit may increase if you repay on time.

When a fast loan makes sense

A fast loan can help with an urgent, one-off expense that cannot be postponed:

• repairing a car you need to get to work;
• urgent home repairs — for example, a broken boiler;
• an unexpected large bill that cannot be deferred;
• unforeseen funeral costs for a loved one.

In all these cases one thing matters: you should know in advance how you will repay the loan.

When you should not take a fast loan

• To repay another loan — this only makes the debt grow.
• To pay regular bills such as rent, utilities or phone. If you are short of money for them every month, a loan will not solve the problem.
• For entertainment, gifts or purchases you can do without.
• If you don’t know how you will repay it.

Before applying, weigh up all the downsides once more. You borrow someone else’s money for a while, but you will repay it with your own — and you still have to earn it.

How to apply for a fast loan

Choose a lender in the catalogue by comparing the terms, then go to its website. There you fill in an online application. It usually asks for:

• the loan amount and term;
• personal details and address;
• your residence status in the country;
• your employer and monthly income;
• regular expenses and existing loans;
• your bank account details.

The lender will assess your ability to repay by looking at your income, expenses and credit history. This may take a few minutes. Once approved, you will receive a contract that can be signed electronically — via online banking, an electronic signature or an SMS code. Read the contract carefully before signing. If anything raises doubts, it is better to decline.

What the lender may decide

• Approval. You will be told the loan amount, interest rate, total amount to repay, number of payments and dates.
• More information needed. The lender may ask you to confirm your income with a bank statement or verify details by phone.
• Rejection. Don’t rush to apply to another lender straight away. First try to understand why: check your credit history and consider whether the amount is too large for your income.

How much a fast loan costs

Fast loans are more expensive than bank loans: speed and the absence of collateral come at the price of a higher interest rate. In Latvia and several other EU countries, the law caps the maximum cost of consumer credit, but even within these limits a loan can be expensive. So compare not the monthly payment but the total cost of the loan: the annual percentage rate (APR) and the total amount to repay.

If you have spare money, you can repay the loan early: in the EU borrowers have this right, and no interest is charged for the remaining term. Remember that a payment counts as made on the day the money reaches the lender, not the day you send it.

Can you cancel a loan

Yes. In the EU you have the right to withdraw from a consumer credit agreement within 14 days without giving a reason — from the day you sign the contract or receive a copy of it, whichever is later. After withdrawing, you must repay the amount received and the interest for the days you used the money within 30 days. The lender may not charge any other fees for the withdrawal. The exact procedure is set out in your contract.

Fast loans and credit history

Can you get a fast loan with bad credit

Sometimes, but approval is not guaranteed and the terms are usually worse: a smaller amount and a higher rate, because the lender takes the higher risk into account. Each application is assessed individually, and the lender’s main concern is whether your income is enough to cover the payments after all essential expenses.

If someone guarantees a loan despite bad credit, with no checks and no income required, it is almost certainly a scam — especially if you are asked to pay something upfront. And if you already have overdue debts, a new loan is more likely to make things worse. In that case it is better to contact your current lenders and ask to change your repayment schedule.

What your credit history contains

Your credit history holds information about your loans and other obligations: amounts, terms, whether payments were made on time, and any arrears. In Latvia, this data is collected by the Credit Register of the Bank of Latvia and private credit bureaus. You can request your own data and check it for errors. Each lender assesses credit history by its own rules, so there is no single “credit score” used by everyone.

How applications affect your credit history

Before granting a loan, the lender checks your history, and these checks may be visible to other lenders. Many applications in a short period — especially rejected ones — look like a sign of financial difficulty. So don’t submit applications one after another: compare terms in the catalogue first and choose the one or two lenders that suit you best.

How to improve your credit history

The best way is to meet all your current obligations on time, gradually reduce your debts and avoid loans you would struggle to repay. Over time, regular payments improve your credit history and give you access to better offers. Learn more in the article “About bad credit history”.

How the AllCredits catalogue can help

The catalogue lists lenders offering fast loans in Latvia and other European countries. You can compare their terms — amounts, terms and cost examples — before you apply. The catalogue does not ask for your data or check your credit history, so browsing it has no effect on your history. You submit your application on the chosen lender’s website, and only the lender decides whether to grant the loan.

You can browse lenders in the “Fast loans” section. If you need a larger amount over a longer period, a long-term loan may be a better deal.

A fast loan is a solution for an urgent, one-off situation, not a way to cover a permanent shortage of money. Take one only if you are sure you can repay it on time.