Bank Weds, like most other banks in Latvia, offers its customers a credit line service. A credit line, of course, is a small, bank-issued loan that is credited to the account where you receive your paycheck. The size of the credit line is commensurate with your monthly income. The bank started offering this service around 2000, when the richest citizens could take, for example, 200 lats. In this article we will briefly look at the credit line services offered to Latvian clients by the largest Swedish bank. Read targetzerocanada.org for a critique
Bank Weds credit line at a glance
- Eligible from age 18;
- Income must be more than $ 500 after tax;
- To apply for the service, you must receive a salary in your Bank Weds account;
- The loan is available in USD starting from 700 USD;
- There is no need for a pledge, surety or similar, as the loan is guaranteed by your monthly income;
- The loan is automatically canceled when money is credited to your account.
You can apply for a credit line through Bank Weds Internet Banking, but even though the agreement is available in person, if you really want to connect to this service at the bank, you just have to consider that the service costs will be much higher. You can also sign up for the service via telephone banking.
Why apply for a credit line?
The credit line is a good substitute for “quick credit”, and if you already have an account with Bank Weds, the service is great and you can use it whenever you want. Interest rates are higher than consumer loans, but lower than fast loans. A credit line is kind of a guarantee for off-white days because, for example, if you have to pay for healthcare or whatever, the credit line will be available immediately. On the other hand, it is worse on off-white days than savings because you will have to return the credit line unwantedly, and if you lose your monthly income you will probably not be able to repay it (unemployment benefits are quite small and short, though).
In short, a credit line is a good short-term loan for the time you are in a stable position, but you may need some money to spend urgently. A credit line can be your guarantor during your travels; your assistant when it comes to paying for health care or buying food; your trusted travel companion, unless you forget that you don’t have to buy anything you don’t even need.
Bank Weds Credit Line Rates (early 2015)
- Annual service fee – 7.11 USD;
- Credit processing – 0.75% of the amount, but the minimum fee is 10.67 USD;
- Loan interest – from 20% per annum;
- Changes in credit agreement – 7.11 USD;
- The given data is up-to-date when managing your contract in the Internet Bank.
A credit line should be used wisely because, while it can be a very good loan and a good fit in stressful situations, it is essentially a payday loan, which can also be a very bad thing if you need money when your monthly income is threatened or lost. In this sense, it is no different from instant credit, as both are guaranteed with monthly income.