How do Portugal’s loan and credit system work?

There might come a time when you need extra cash in the form of credit or a loan in Portugal. Knowing more about loans and credit might be useful.

Understanding how credit and loans work in a country like Portugal, as well as how to apply for them and the terms that come with loans and credit, is important. There are several loan options available, so knowing which one is the best to suit your needs is one thing you need to consider. When looking for a loan agent or provider in Portugal, you can visit Opinioesja, a review site that provides real customer feedback on loan agents and which companies are the best providers of loans and credit in Portugal.

Ensure Compliance and Registration of Loan and Credit Agents

Loan and credit agents or providers in Portugal need to be registered with the Banco de Portugal in order to operate. Loans are available from banks and various credit institutions, each with its own terms and conditions in relation to interest rates and repayment terms. When taking out a loan from a credit institution or loan provider, it is important to note that this will be recorded in the Central Credit Register, which is a database managed by the Banco de Portugal for assessing your credit record and details your loan payment history.

Personal Loans or Revolving Credit?

The two types of loans we will look at are personal loans and revolving credit, which can be used for a quick cash boost in times of an emergency or unforeseeable events such as your car breaking down or a major appliance in your home breaking.

Personal loans are available for amounts between EUR 200 and EUR 75,000. They can finance the purchase of goods and services and do not require that you provide any form of collateral for the loan. You also do not need to state the required use of the funds that will be made available to you. Personal loans can be granted by banks and credit institutions. If you need a personal loan, you might be interested in Credit ValorOK, a loan provider in Portugal. By clicking on the link, you can read real reviews from customers who have used and can recommend this provider.

The second option for a loan in Portugal is revolving credit. Revolving credit is a form of credit that is made available to you from the bank where you have an account, such as an overdraft facility or bank credit account. With an overdraft facility, you can get the funds over the balance of your current account, with a specified maximum limit. This is useful if you need a cash boost without taking out a loan, as you can use it as you pay it off. A bank credit account is a fixed-term agreement in which there is no set time for repayment, and a maximum credit limit is established. Note that the bank will consult the Central Credit Register to assess affordability before granting revolving credit.

Which is best for you?

It is extremely important to compare all the options available to you, as well as their terms, conditions, benefits, and disadvantages, before making a final decision. While a revolving credit facility might be useful, as you can keep your monthly repayments limited to one provider, a personal loan might be a quicker option. Ensure that you provide all documentation that is required for each option.