If you are interested in loans, you have come to the right place. Today, in our new article on the Mr. Credit blog, we’ll look at the peculiar topic of black loans.
They often need to be more clear about people who apply for a loan now and then. Most often, people think that because they are black loans, they are nasty or have some trickery. Let’s find out if this is the case.
Where did the term “black loans” come from?
If you look at how black loans are explained from the banks and the state’s point of view, you can understand that they are most often about illegal lenders. But don’t panic straight away. Nowadays, the PTAC database can be used to check the licenses of almost all lenders.
So, if you are “lucky” enough to come across a not-licensed lender, you can safely assume it is a black lender, and we do not recommend you take a loan from it. However, the term “black loans” is generally used in a slightly different context among the Latvian population. Let’s find out more about it.
Official black loans in Latvia
Yes, you understood correctly. Black loans are not always linked to scams and fraudulent lenders. In Latvia, loans have been offered under the name of black loans to people who have had difficulties applying for regular loans for several years now. This applies mainly to all debtors.
Black loans in Latvia are the same fast loans offered by official lenders, but usually on less favorable terms. For example, the interest rate can exceed 50%, the amount available may not even reach €1000, and the repayment period is usually quite limited. However, it is an option for those who cannot get a conventional loan.
Is it worth taking out a black loan?
Now, you may be confused about whether or not you should avoid black loans. Let’s put it this way: if you check everything and think carefully about your decisions, you won’t have to believe in popular idle beliefs. Let’s look at examples of when you should or should not apply for a black loan.
A black loan will be helpful to you if:
- the lender has an official license, so you can be sure that its activities are transparent;
- several lenders have refused you based on your credit history or poor credit rating;
- you need money quickly and easily without unnecessary complications.
Whatever situation you find yourself in, we recommend you think twice before signing a contract and agreeing to a loan. After all, unscrupulous lenders can abuse it to their advantage, seeing that Latvia is trying to “whitewash” the concept of black credits. It is, therefore, always important to be vigilant!
Wide range of loans on offer at Netcredit.lv
Of course, you must be even more careful when researching the black market than when looking for a car or personal loan. However, Netcredit.lv, the people’s lending assistant, makes it more accessible.
On their site, you can select the “Loans for debtors” section, which means the same as black loans, and see all the offers at once. Netcredit has the advantage of only comparing official loans, considering all the information about each creditor, which they are only sometimes open about. This saves much more time than searching for information and independently reviewing customer reviews.
Black credits only on a black day
When you discover that black loans are essentially the same as fast loans but with relaxed conditions, you may be tempted to turn to them for extra cash. But even though you need to apply wisely, it’s worth thinking further when applying for a black loan.
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After all, the amount you receive quickly often does not justify the unfavorable terms granted. This type of loan is mainly intended for a particular group of people, and we advise you to avoid it. But now you know that black loans are not as “black” as they may seem at first sight.
Labdien, mani sauc Māris, un esmu eskperts kredītu lietās. Pastāvīgi papildinot savas zināšanas, izmantojot jaunākās tehnoloģijas, es veidoju detalizētus pārskatus aizdevumu jomā. Mans mērķis ir sniegt lasītājiem aktuālas un vērtīgas zināšanas, lai jūs varētu pieņemt pareizus finanšu lēmumus.