Personal loans, credit cards and buy now pay later in Spain

Key rules

• Compare the TAE: Judge any loan or card by its TAE, not the headline interest rate.
• Revolving cards: A card you repay in instalments is the costly kind, often at a very high TAE.
• Usury: A rate far above the Bank of Spain average for that product can make the contract void for the interest.
• Withdrawal: You have 14 calendar days to withdraw from a consumer credit contract without giving a reason.
• BNPL: Interest-free or very short BNPL may fall outside consumer credit protections.

Which product to choose

A bank personal loan is usually the cheapest way to borrow. A credit card used as revolving credit is far more expensive. Minicredits (small, short, mostly online loans) are the costliest of all. Buy now pay later (BNPL) is fine if it is interest-free and you pay on time.

The main types you will meet:

• Personal loan: a fixed amount over a fixed term.
• Credit card: either paid in full the next month, or revolving (you pay in instalments).
• Revolving credit line: credit you can draw on again as you repay.
• Minicredit: a small, short, high-cost loan.
• BNPL or point-of-sale financing: paying for a purchase in parts.
• Overdraft: spending more than your balance, authorised or not.

Compare offers by TAE

The TAE is the yearly cost of the credit, including interest and all mandatory charges. Compare the TAE, not the headline interest rate. Rates differ a lot by amount, term and your profile, so get at least two offers.

The Bank of Spain publishes monthly average rates for new consumer credit and cards. Put your offer next to the average for that product. A rate far above it is a warning sign.

Know your card

Check which kind of card you are being offered:

• Debit card: charges the money from your account straight away. No credit.
• Deferred-payment credit card: purchases are added up and debited together, usually next month, typically without interest.
• Revolving card: you repay a set instalment each month and the rest accrues interest, often at a very high TAE. Debt can last for years.
• Prepaid card: you load money first and can spend only that.

Many cards are sold as deferred payment but switch to revolving. Read the interest rate, fees and payment mode before you accept.

Before you sign

For loans between 200 and 75,000 euros, the lender must give you the standard information form (SECCI) free of charge, in good time before you are bound. It shows the total you will pay, the TIN (nominal interest rate), the TAE, insurance or extra costs, and your rights to withdraw and to repay early. The lender must also assess whether you can repay. Mortgages have their own rules.

Do not sign under pressure or accept bundled insurance you did not ask for.

Your rights after signing

You can withdraw from a consumer credit contract within 14 calendar days without giving a reason, by telling the lender in writing or another durable form before the deadline. The period runs from signing, or from when you receive the contract terms if that is later. You then return the capital plus interest accrued to the day you repay, within 30 days of notifying the withdrawal.

You can also repay a loan early, in whole or in part, and cut the interest and costs for the remaining term. The lender may charge a fee of at most 1% of the amount repaid if more than one year remains, or 0.5% if one year or less remains. No fee applies to overdrafts, or if you repay no more than 10,000 euros within 12 months.

When a rate is illegal: usury

A loan can be void if its interest is notably higher than the normal rate and manifestly disproportionate. Spain's Supreme Court compares your rate with the Bank of Spain average for that product. A revolving card at around 26% TAE, far above the average, can be usurious. If a court finds usury, you repay only the capital you borrowed, minus what you have already paid. If you think your rate qualifies, ask a consumer association or a lawyer.

Buy now pay later

BNPL is treated as consumer credit when it is above the legal thresholds. Interest-free credit and very short repayments often fall outside the rules, so you may have fewer protections. Ask whether the plan is interest-free and how long it lasts. New EU rules, due to apply from 20 November 2026, extend protection to interest-free credit and loans under 200 euros. Check with your bank or a consumer office what applies to your plan now.

The checklist, documents and warning signs below help you compare offers.

Timeline and deadlines

• Receive the standard information form and compare offers: before you sign or accept any offer

• Withdraw from the contract if you change your mind: within 14 calendar days of signing, or of receiving the contract terms if that is later

• Repay the capital and interest accrued up to the day of repayment after withdrawing: within 30 days of notifying the lender

• Repay the loan early, in whole or in part, if you want to cut the interest: at any time during the loan

Documents you need

• The standard European information form (SECCI): the lender must give it to you free of charge in good time before you are bound, and it shows the TAE, total amount payable and your withdrawal and early repayment rights.

• The signed credit contract: keep your copy, because the 14-day withdrawal period can start from the day you receive the contract terms.

• Your written withdrawal notice, if you withdraw: send it to the lender in writing or another durable form before the deadline.

Checklist

• Compare the TAE, the annual cost including interest and mandatory charges, of at least two offers before choosing.

• Look up the Bank of Spain's monthly average rates for new consumer credit and cards, and compare your offer with them.

• Confirm whether your card is a debit card, a deferred-payment credit card, a revolving card or a prepaid card.

• Ask whether a buy now pay later plan is interest-free and how long it lasts, so you know if consumer credit rules cover it.

• Ask for the standard information form before you sign any loan or financed purchase.

Warning signs in a credit offer

• A card that works as revolving credit: A card with a fixed monthly instalment, or a payment mode called "pago aplazado", "cuota fija", "crédito revolving" or "crédito permanente", is revolving credit. Each repayment restores your available credit, so the debt shrinks slowly and most of the instalment can be interest. Ask for payment in full each month, and check the TAE, the instalment and the repayment mode before you accept the card.

• A high TAE: The TAE is the total yearly cost of the credit. Revolving cards often have a TAE above 20%, and minicredits cost even more than bank personal loans, which are the cheapest. Compare the offer's TAE with the average rates the Banco de España publishes, and choose the lower one.

• Bundled insurance or add-ons: A lender can make a loan conditional on insurance only if the cost is shown in the pre-contract information form (SECCI) and included in the TAE. You can offer an equivalent policy from another insurer. Refuse extras you did not ask for, offer your own policy, and complain to the bank or the Banco de España if it is forced on you.

• Pressure to sign quickly: Pressure to sign fast, no SECCI form, fees demanded before the loan is granted, or no credit check are all signs of a costly or abusive lender. Ask for the SECCI form and take time to read the contract. Never pay anything upfront.

• Hidden costs and unregistered lenders: An attractive advertised TIN (the nominal interest rate) can hide fees. High default interest or late-payment charges, and contact only through messaging apps, are further warning signs. Look the lender up in the Banco de España register of entities, and read the fees and late-payment terms in the contract before signing.

Frequently asked questions

Can a credit card interest rate be illegal in Spain?

Yes, a credit card rate can be treated as usury if it is far above the average rate the Bank of Spain publishes for that product. Revolving cards at around 26% TAE have been found usurious by the courts.

Do I have to pay a fee if I repay my loan early?

Not always: the lender can charge at most 1% of the amount repaid early if more than one year of the loan remains, or 0.5% if one year or less remains. No fee is due if you repay 10,000 euros or less within 12 months, or if the loan is an overdraft credit line. You also get a reduction in the interest and costs for the remaining term.

Does buy now pay later count as a loan in Spain?

Yes, buy now pay later is consumer credit when it is above the legal thresholds, but interest-free or very short repayment plans often fall outside the rules. New EU rules apply from 20 November 2026 and extend protection to credit below 200 euros. Ask the seller or lender which rules cover your plan.

What information must a lender give me before I sign a consumer loan?

The lender must give you, free of charge, a standard European information form before you are bound. It shows the TIN (the nominal interest rate), the TAE, the total amount payable, the instalments and any mandatory insurance or extra costs. Use it to compare offers side by side.