Credit — types, annual percentage rate of charge (APR), mortgages, credit history

🧔 Adult The EU rule. EU consumer credit law defines a "creditor" broadly — a natural or legal person who grants or promises to grant credit in the course of their trade, business or profession (Directive (EU) 2023/2225, Article 3(2)) ✔. So the question is not only "is it a bank?", but "who exactly is giving me the money, and who supervises them?"

• Banks — credit institutions licensed by the banking supervisor.
• Non-bank lenders. Under Directive (EU) 2023/2225, Article 37, Member States must ensure that creditors and credit intermediaries that are not banks, payment institutions or e-money institutions are subject to an adequate admission process, registration and supervision by an independent competent authority ✔ (publications.europa.eu, CELEX 32023L2225, opened 21.10.2026).
• Other providers — for example peer-to-peer lending platforms, sellers offering payment in instalments. The EU/OECD-INFE framework points out that credit is also offered online, and that formal and informal providers carry different risks (competences 292, 299).

In practice: before you sign, check in the public register that the company is registered, and see whether its website shows the price clearly. Registration is not a judgement on the quality of its product — it is a starting point for checking.

Example: Bulgaria — The Consumer Credit Act defines a "creditor" as any natural or legal person who grants consumer credit in the course of their professional or commercial activity ✔ (Article 9(4)). Non-bank financial institutions are not licensed as banks but entered in a public register of the BNB under Article 3a of the Credit Institutions Act. The BNB describes the regime as "registration", not licensing ✔. The register is public and contains basic data on registered and deregistered companies; when opened, it was up to date as of 9 October 2026 ✔.

Check in your country — Which authority keeps the register of lenders (often the central bank, the financial supervisor or the consumer protection authority)? Search the register for the company's name and identification number before you sign.

🏗 Business/Organisation Credit for the activity of a company, an association or a self-employed person is not consumer credit. EU consumer credit rules protect a "consumer" — a natural person acting for purposes outside their trade, business or profession (Directive (EU) 2023/2225, Article 3(1)) ✔ (for small business — Module 18).

Myth → truth

• Myth: "Everyone who lends money is a bank and is checked like a bank."
• Truth: supervision differs. Check in the public register who is in front of you and under which regime they work.

Who profits? The lender — from interest and fees; you — from being able to do something today for which you do not have the money. The profit is fair when the price is clear before signing.

→ Continue at the source

• Example Bulgaria: BNB — Register of financial institutions under Article 3a of the Credit Institutions Act: https://www.bnb.bg/RegistersAndServices/RSFIRegister/index.htm ✔
• Example Bulgaria: Consumer Credit Act — consolidated text, lex.bg: https://lex.bg/bg/laws/ldoc/2135666506 ✔ (opened 21.10.2026)
• Directive (EU) 2023/2225 — EUR-Lex: https://eur-lex.europa.eu/eli/dir/2023/2225/oj ✔

🧔 Adult The EU rule — which credit is covered. The current Consumer Credit Directive 2008/48/EC covers credit between €200 and €75,000; it does not cover credit secured by a mortgage, credit to buy land or a building, overdrafts repayable within one month, or leasing without an obligation to buy (Article 2(2)(a)–(e)) ✔. The new Directive (EU) 2023/2225, applied from 20.11.2026, removes the lower limit, raises the upper limit to €100,000 (Article 2(2)(c)), covers most "buy now, pay later" products (Article 2(2)(h)) and still excludes mortgage-secured credit (Article 2(2)(a)–(b)) ✔. Mortgage credit has its own directive (Chapter 5).

Example: Bulgaria — The Consumer Credit Act covers credit advertised as such, and Article 3 also includes overdrafts repaid over more than three months and leasing with an option to acquire ✔ (Article 3(2)–(3); lex.bg, opened 21.10.2026). It does not apply to credit with a total amount above €75,000 or to credit secured by a mortgage on immovable property (Article 4(1), points 1–2) ✔. The bill for a new law (see Chapter 8) provides for a scope up to €100,000.

Check in your country — Find the national law on consumer credit (it transposes the EU directive) and look at its scope: up to what amount, and whether overdrafts, leasing and "buy now, pay later" are covered. The Your Europe page on consumer credit is a neutral starting point.

How to choose the type:

1. What is it for? The framework distinguishes credit that creates future income or wealth (e.g. training, equipment for work) from credit for consumption (competence 276). The second is usually worth it only if it is really necessary and there is a firm repayment plan.
2. Is it secured? If so, what do you lose if you do not pay (Chapter 7)?
3. How flexible is it? Revolving credit (card, overdraft) carries a risk with repeated use (competence 301): you pay the minimum, and the interest keeps running.
4. Is it offered "interest-free"? An interest-free period may turn into interest once it ends if you have not repaid everything (competences 327, 330).

Myth → truth

• Myth: "The overdraft is my money."
• Truth: an overdraft is a loan from the bank. It has a price and must be repaid (competence 323).

Who profits? The seller — when credit makes you buy more, or more expensively, than planned (competence 326). You — when the type of credit fits the purpose and the term.

→ Continue at the source

• Your Europe — Consumer credit and loans: https://europa.eu/youreurope/citizens/consumers/financial-products-and-services/consumer-credits-and-loans/index_en.htm ✔
• Directive 2008/48/EC — EUR-Lex: https://eur-lex.europa.eu/eli/dir/2008/48/oj ✔

🧔 Adult The EU rule (Directive 2008/48/EC ✔, publications.europa.eu, opened 21.10.2026):

• Article 3(i): the APR is "the total cost of the credit to the consumer, expressed as an annual percentage of the total amount of credit".
• Article 3(g): the total cost includes interest, commissions, taxes and any other fees the consumer must pay in connection with the credit agreement; costs of ancillary services, in particular insurance premiums, are included if that service is compulsory in order to obtain the credit or to obtain it on the terms marketed.
• Article 19: the APR equates, on an annual basis, to the present value of all commitments (drawdowns, repayments and charges) and is calculated by the formula in Annex I; charges for the consumer's own non-compliance are not included.
• Article 5(1)(g): before the contract you must receive the APR and the total amount payable, illustrated by a representative example.
• Article 22(2): consumers may not waive the rights given to them by the national law implementing the Directive.
• From 20.11.2026, Directive (EU) 2023/2225: the same method (Article 30), and a new obligation — Member States must introduce measures to effectively prevent excessively high borrowing rates, APRs or total costs of credit, "such as caps" (Article 31(1)) ✔.

Example: Bulgaria — Consumer Credit Act ✔ (consolidated text, lex.bg, opened 21.10.2026): Article 19(1) — the APR "expresses the total costs of the credit for the consumer", present and future, as a percentage of the credit granted; (2) — calculated by the formula in Annex No. 1; (3) — some costs are excluded, e.g. those caused by the consumer's non-performance and the price of the goods or service; (4) — the APR "may not be higher than five times the statutory interest on late payments in euro and in foreign currency, set by decree of the Council of Ministers" (the law contains no number: the statutory interest is set separately and changes, so the cap is not a constant); (5) — clauses exceeding the cap "are considered null and void". Article 11(1), points 9 and 10: the contract must state the interest rate and the conditions for applying it, as well as the APR and the total amount payable. Article 10a: the lender may not charge fees for actions related to drawing down and managing the credit; additional services may be charged. Article 20: rights under the law cannot be limited; waiving them is invalid. The cap was introduced by an amendment (State Gazette No. 35 of 2014, in force from 23.07.2014) ✔. If a service is a compulsory condition for getting the credit, its cost is part of the total cost (Supplementary Provisions, § 1, item 1) ✔.

Check in your country — Does your country cap the APR or the total cost of credit, and how is the cap calculated? Look at the consumer protection authority or the financial supervisor; from 20.11.2026 every Member State must have such measures (Directive (EU) 2023/2225, Article 31).

How to read it in practice:

1. Find the APR and the total amount to repay in the offer.
2. See what is included in the fees and whether there is a "service package" you did not ask for; if such a service is a compulsory condition for getting the credit, its cost is part of the total cost of the credit.
3. Remember that a longer term lowers the instalment but raises the total price (Module 7).
4. The real price also depends on inflation (competence 291) and on whether the interest is fixed or variable.

Myth → truth

• Myth: "The instalment is low, so the loan is cheap."
• Truth: a low instalment often comes from a long term. Look at the APR and the total amount.

Who profits? Whoever receives the fees and the interest — which is why the offer must show them clearly. You profit when you compare at least two offers by APR.

→ Continue at the source

• Directive (EU) 2023/2225 (APR calculation, advertising): https://eur-lex.europa.eu/eli/dir/2023/2225/oj ✔ text opened (EUR-Lex/Cellar, 19.10.2026): Article 8 — standard information in advertising, Article 30 — APR calculation (formula in Annex III), Article 31 — measures against excessive interest, APR and costs (e.g. caps)
• Example Bulgaria: CPC — useful advice "When you conclude a credit agreement": https://www.kzp.bg/bg/polezni-saveti/credit ✔ (in Bulgarian)

🧔 Adult The EU rule (Directive 2008/48/EC ✔, publications.europa.eu, opened 21.10.2026; from 20.11.2026 — the matching articles of Directive (EU) 2023/2225):

• Article 5(1) (pre-contract information): in good time before you are bound, the lender gives you the information needed to compare offers, on paper or another durable medium, by means of the SECCI form (from 20.11.2026: Article 10, with the key elements on one page).
• Article 8 (creditworthiness): before the contract, the lender assesses your creditworthiness on the basis of sufficient information and, where necessary, by consulting the relevant database; it reassesses before any significant increase of the credit (from 20.11.2026: Article 18 — a "thorough" assessment, in the consumer's interest).
• Article 14 (right of withdrawal): you can withdraw within 14 calendar days without giving a reason — from the conclusion of the contract or from receiving the contract terms, whichever is later; you repay the capital and the interest for the period of use, no later than 30 calendar days after notifying the lender (from 20.11.2026: Article 26 ✔).
• Article 16 (early repayment): you may repay fully or partially at any time, with a reduction of the interest and costs for the remaining term. Compensation is allowed only for a period with a fixed rate and may not exceed 1 % of the amount repaid early if more than one year remains, or 0.5 % if one year or less remains; none is due for repayment under a credit insurance, for an overdraft, or for a period with a variable rate (from 20.11.2026: Article 29 ✔).

Your Europe also notes that compensation for early repayment must not exceed the interest actually lost ✔ — national law may be more specific, so look at it.

Example: Bulgaria — Consumer Credit Act (✔ lex.bg, opened 21.10.2026): Article 5 — information for comparing offers "in the form of a standard European form" (Annex No. 2); Article 16 — creditworthiness assessment, with the possibility to check the Central Credit Register or another database; reassessment if the credit increases by more than 25 %; Article 29 — withdrawal within 14 days (confirmed by Your Europe: "14 calendar days" ✔, and by the CPC: "within 14 days of its conclusion" ✔); Article 32 — early repayment at any time, compensation up to 1 % / 0.5 % with a fixed rate, none with a variable rate, insurance payment or overdraft; Article 33 — the lender may not refuse a partial payment; in case of delay, interest is charged on the overdue amount for the period of the delay. CPC: the lender has no right to oblige you to issue a promissory note as security ✔ (CPC, "When you conclude a credit agreement").

Check in your country — Your national consumer credit law sets the same 14 days and the same early-repayment caps (Member States may add a threshold or allow higher proven losses). Ask the lender for the SECCI form — it has the same structure in every EU country.

What to do before you sign:

1. Ask for a written offer and the SECCI form; check that the figures in the contract match the form.
2. Give yourself time. Do not sign "now, because the offer expires today" without fitting the instalment into your budget (Module 8).
3. Find out whether you can repay early and what it will cost.
4. Remember that you can renegotiate: if the terms become unsuitable, see whether there is an option to change them or a better offer elsewhere (competences 320–321). Before that, calculate the whole result, including any early-repayment charge.

Myth → truth

• Myth: "Once I sign, there is no way back."
• Truth: with consumer credit you have 14 days to withdraw without a reason, and the right to repay early at any time (Directive 2008/48/EC, Articles 14 and 16; from 20.11.2026, Directive (EU) 2023/2225, Articles 26 and 29).

Who profits? The person who has read the SECCI form and compared two offers: they do not pay for services they do not need.

→ Continue at the source

• Example Bulgaria: CPC — Consumer credit: https://www.kzp.bg/bg/polezni-saveti/credit ✔ (in Bulgarian)
• Your Europe: https://europa.eu/youreurope/citizens/consumers/financial-products-and-services/consumer-credits-and-loans/index_en.htm ✔

🧔 Adult The EU rule — the Mortgage Credit Directive 2014/17/EU (✔ publications.europa.eu, opened 21.10.2026):

• Article 3(1): it covers credit secured by a mortgage (or comparable security) on residential property and credit to acquire or retain property rights in land or buildings.
• Article 14: before you are bound, you receive personalised information on the European Standardised Information Sheet (ESIS); a binding offer comes with an ESIS. Article 14(6): Member States set a period of at least seven days to compare offers and decide — a reflection period before signing, a right of withdrawal after signing, or both.
• Article 18: the lender makes a thorough creditworthiness assessment and may make the credit available only if you are likely to meet your obligations; the assessment must not rely mainly on the value of the property.
• Article 12(4) (insurance): if insurance is required, the lender must accept a policy from a provider other than its preferred one, if the level of cover is equivalent. See also Module 12, Chapter 7.
• Article 24: for variable-rate credit, the indexes or reference rates must be clear, accessible, objective and verifiable.
• Article 23 (foreign currency): for a foreign-currency loan, you must have the right to convert the loan into another currency under specified conditions, or another arrangement that limits exchange-rate risk; the lender warns you at least when the amount outstanding or the instalments vary by more than 20 %.
• Article 25 (early repayment): you have the right to repay early, with a reduction of the cost; Member States may allow fair compensation, which must not exceed the lender's financial loss.
• Article 28: Member States encourage lenders to show reasonable forbearance before starting foreclosure.

Example: Bulgaria — The national law on consumer credit for immovable property (✔ consolidated text, lex.bg, opened 21.10.2026): Article 1(2) — covers credit "secured by a mortgage or another comparable security on immovable property" and credit to acquire or retain rights in property; Article 9(3) and Article 5(2), point 5 — the draft contract is a binding offer; you have no fewer than 14 days from receiving it to decide (longer than the EU minimum of 7 days); Articles 13–14 — creditworthiness assessment; Article 12(3) — the lender must accept policies from insurers it does not work with if the cover is equivalent (from a review of the text ✔ and an explanation by the Association of Bulgarian Insurers ✔); Article 25 — for variable rates the reference rate follows a methodology that is part of the contract and cannot be changed unilaterally; Articles 33–35 — right to convert the currency and notice if the amount due or the instalments change by more than 20 %; Article 41 — early repayment at any time; compensation of up to 1 % of the amount repaid early is due only if you repay before you have paid 12 monthly instalments from drawdown; after that, none is due (Article 41(3)–(4)) ✔.

Check in your country — Find the national law that transposes Directive 2014/17/EU and look for: how many days you have to decide (at least 7), what early repayment costs, and what rules apply to foreign-currency loans. Ask the lender for the ESIS sheet.

What this means in numbers (fictional example): a loan of €100,000 for 25 years (300 instalments).

(Formula and explanation — Module 7.) If the interest is variable and rises from 4 % to 6 %, the instalment grows by more than €116 a month. A question for yourself: can my budget take this?

Currency risk. If your income is in one currency and the loan in another, the exchange rate affects the instalment (competence 300). That is why EU law provides for conversion and for a warning when the change exceeds 20 %.

Down payment. EU law does not set a single number. In many EU countries, the national central bank or macroprudential authority sets limits on mortgage lending — for example on the loan-to-value ratio (LTV), on the debt-to-income (DTI) or debt-service-to-income ratio (DSTI) and on the maximum term; these borrower-based measures are not harmonised by EU law, are set under national law and differ from country to country ✔ (ESRB, "Other measures" — national notifications of borrower-based measures, opened 21.10.2026: https://www.esrb.europa.eu/national_policy/other/html/index.en.html). Within these limits, each bank sets the exact down payment by its own rules. Do the maths: the more you put down, the smaller the principal and the interest.

Example: Bulgaria — From 1.10.2024 the BNB requires banks, for housing loans, that the loan at origination does not exceed 85 % of the property value, that debt payments do not exceed 50 % of monthly income, and that the term does not exceed 30 years (with a limited exception of up to 5 % of the volume) ✔ (BNB, press release of 11.09.2024, opened 21.10.2026). Within these limits, each bank sets its own down payment ⚠ (whether the BNB requirements are unchanged on 21.10.2026 — no newer release was found).

Check in your country — Does your central bank or macroprudential authority set limits on LTV, DSTI or the term of housing loans? Look on its website under "macroprudential policy" or "borrower-based measures".

What the total price includes: interest; fees; insurance; property valuation; notary fees and taxes on the purchase. Compare offers by APR and by the total amount, not only by the interest rate.

The risk of losing the home. If payments stop for a long time, the lender can start enforcement against the mortgaged property (competence 302). So do not take the biggest amount the bank is willing to lend, but the one your budget can carry even at a higher interest rate. If you run into difficulty, call the lender before the first missed instalment (Module 23).

Myth → truth

• Myth: "The bank approved me for this much, so I can pay it."
• Truth: approval shows what the bank is willing to lend. What you can afford is shown by your budget, including at a higher interest rate.

Who profits? The bank — from interest over decades. You — when you have a stable income, a reserve and an instalment that does not squeeze you.

→ Continue at the source

• Directive 2014/17/EU (Mortgage Credit Directive): https://eur-lex.europa.eu/eli/dir/2014/17/oj ✔ opened; Article 14(6): a period of at least 7 days to decide (reflection period and/or right of withdrawal)
• Example Bulgaria: the law on consumer credit for immovable property — consolidated text, lex.bg: https://lex.bg/bg/laws/ldoc/2136890030 ✔ (opened 21.10.2026; in Bulgarian)
• Example Bulgaria: BNB — requirements for housing loans (LTV 85 %, DSTI 50 %, 30 years): https://bnb.bg/AboutUs/PressOffice/POPressReleases/POPRDate/PR_20240911_1_EN ✔
• Example Bulgaria: Association of Bulgarian Insurers — property insurance with a loan: https://www.abz.bg/article/moga-li-da-izbera-sam-zastrahovkata-na-imota-pri-kredit-2454 ✔ (in Bulgarian)
• Bank of Finland Bulletin — instruments to prevent the risk of indebtedness in Europe: https://www.bofbulletin.fi/en/2022/1/instruments-to-prevent-risk-of-indebtedness-becoming-more-common-in-europe/ (background; not opened — the claim is checked ✔ against the ESRB below)
• ESRB — "Other measures": borrower-based measures (LTV, DTI, DSTI caps) are national macroprudential measures not harmonised by Union law; list of national notifications: https://www.esrb.europa.eu/national_policy/other/html/index.en.html ✔ (opened 21.10.2026)

🧔 Adult The EU rule. There is no single EU credit register. Each country has its own databases — a public register run by the central bank, private credit bureaus, or both. EU law sets common rules for them (Directive (EU) 2023/2225, Article 19 ✔, applied from 20.11.2026):

• databases on consumer credit hold at least information on arrears, the type of credit and the identity of the creditor (paragraph 4);
• only supervised lenders that fully comply with the GDPR have access; special categories of personal data and data from social networks may not be used (paragraphs 2 and 5);
• if your application is rejected because of a database check, the lender tells you without undue delay and free of charge the result, the database consulted and the categories of data used (paragraph 6);
• you must be informed within 30 days when arrears are registered, and of your rights under the GDPR (paragraph 7);
• there must be complaint procedures for challenging what a database says (paragraph 8).

Data protection rights. Credit information is personal data. Under the General Data Protection Regulation (Regulation (EU) 2016/679), you have the right of access (Article 15), the right to rectification (Article 16) and protection against a decision based solely on automated processing (Article 22) ✔ (the text of the Regulation was opened on EUR-Lex, 19.10.2026). Directive (EU) 2023/2225 adds that when the lender uses automated processing, you can ask for human intervention: an explanation, your own point of view and a review of the decision ✔ (Article 18(8)).

Example: Bulgaria — What it is. The Central Credit Register (CCR) is an information system on the credit indebtedness of customers, organised and maintained by the BNB and governed by BNB Ordinance No. 22 ✔. The BNB states that it serves to assess creditworthiness and to prevent over-indebtedness ✔. Who reports. Banks, financial institutions, payment institutions, e-money institutions and others report every month (by the 15th of the following month) data on all active loans of their customers, regardless of the amount; co-debtors and guarantors are also recorded ✔. Who sees it. The data may be used by the reporting institutions under the Ordinance; the BNB uses aggregated data for its own needs ✔. It is not a publicly accessible "black book" — but you have the right to see your own data. What is recorded and for how long. The report covers the current status, arrears on active and repaid loans for 5 years, and newly concluded contracts; an overdue period is recorded when it differs from 0–30 days; individual overdue periods are removed automatically, one by one, after 60 months ✔. How to get your report. It is free within up to 14 days; faster — for a fee under the CCR tariff ✔. Electronically: the application is submitted personally on the cred.bnb.bg portal with a qualified electronic signature on a smart card; a cloud signature is not accepted ✔. In writing: at the BNB, 6 Slavyanska Street, Sofia (working days, 8:30–15:45), or by post with a notarised signature; the report is issued against the applicant's signature, or to an authorised person with a notarised power of attorney ✔. The BNB does not send reports by email ✔. If there is an error. You submit a written request to the institution that reported the data. It examines it and replies in writing within 7 working days; if the request is justified, it corrects and resubmits the data free of charge. The BNB itself cannot correct the data ✔. The data protection authority is the Commission for Personal Data Protection (CPDP).

Check in your country — Who keeps credit data in your country (the central bank, private credit bureaus, or both)? How do you get your own report, and is it free? Which is your national data protection authority? Start from the central bank's website and the national data protection authority.

What goes into the assessment. The EU/OECD-INFE framework says: the lender may look at your income, your usual expenses and other loans; some income (bonuses, one-off receipts, gifts) may not be taken into account (competence 308); the assessment methods change over time (306).

How to look after your history:

1. Pay on time — ideally by automatic payment, but only if there is money in the account.
2. Do not take new loans to repay old ones without doing the maths (competence 339; Module 23).
3. Ask for a report on yourself at least once a year and before a big loan.
4. If there is an error — file a request, see above.

Myth → truth

• Myth: "If I pay the late instalment, my history is cleared at once."
• Truth: arrears stay in the register until the time limits expire (in Bulgaria, up to 60 months for individual periods). That is why paying on time is cheaper than cleaning up later.

Who profits? Everyone involved — when the information is correct: the lender makes fewer ill-considered loans, and you get terms that match your history. You profit most when you know your history and correct the errors.

→ Continue at the source

• Regulation (EU) 2016/679 (GDPR) — EUR-Lex: https://eur-lex.europa.eu/eli/reg/2016/679/oj ✔
• Example Bulgaria: BNB — Central Credit Register: https://www.bnb.bg/RegistersAndServices/RSCreditRegister/index.htm ✔
• Example Bulgaria: BNB — electronic access to CCR information: https://www.bnb.bg/RegistersAndServices/RSServices/RSCentralCreditRegister/index.htm ✔
• Example Bulgaria: BNB — CCR, frequently asked questions: https://www.bnb.bg/AboutUs/AUFAQ/CONTR_CREDIT_REGISTER_FAQ ✔
• Example Bulgaria: CPDP: https://www.cpdp.bg ✔ (the official website of the Commission for Personal Data Protection)

🧔 Adult If you are asked to be a guarantor: this is not a formality and not "just a signature". The EU/OECD-INFE framework says: understand the social and financial consequences of being asked to be a guarantor and of the responsibility when instalments are not paid (286–287). Ask:

1. What is the amount, the term and the interest of the loan?
2. Could I pay it if needed? What happens to my own loans and history — in many countries guarantors are recorded in the credit register too (in Bulgaria, in the CCR ✔)?
3. Can we ask for a statement of payments?
4. Is there another way (a smaller loan, a longer term, saving, other collateral)?

If you are looking for a guarantor: tell the whole truth and give access to the contract. A friendship without clear rules is often the first loss.

Collateral. Know whether the loan is secured and what you lose if you do not pay (competence 290). Which kind of collateral a product accepts — see the contract and the SECCI form.

Example: Bulgaria — The CPC states that the lender has no right to oblige you to issue a promissory note ✔.

Check in your country — What kinds of security may a lender ask for in consumer credit, and what does a guarantor sign? Ask your consumer protection authority.

🏗 Business/Organisation An owner who is a personal guarantor for their company's loan takes on personal liability; for small business — Module 18.

Myth → truth

• Myth: "The guarantor only signs, they won't have to pay."
• Truth: the guarantor is liable for the debt if the borrower does not pay; and in many countries they are also recorded in the credit register.

Who profits? The lender — it has a second source of payment. The borrower — may get the credit. The guarantor takes the risk and usually gains nothing material.

→ Continue at the source

• Example Bulgaria: CPC — When you conclude a credit agreement: https://www.kzp.bg/bg/polezni-saveti/credit ✔ (in Bulgarian)
• Example Bulgaria: BNB — CCR (co-debtors and guarantors are also recorded): https://www.bnb.bg/RegistersAndServices/RSCreditRegister/index.htm ✔

🧔 Adult Questionnaire before signing (answer in writing):

1. Purpose. What is it for? Does it create income/value, or is it consumption? (276)
2. Alternatives. Saving, postponing, sharing, help from people close to you? (283)
3. Amount and term. Exactly how much do I need? Would less do?
4. Price. What is the interest, the APR, the total amount to repay, the fees, the insurance? (275, 278)
5. Type of interest. Fixed or variable? What happens to the instalment if the rate rises? (291)
6. Budget. Does the instalment fit into my budget (Module 8) with a reserve left over? What is the ratio of all instalments to income? (271–272, 279)
7. SECCI. Have I received the form and checked it against the contract? (296)
8. Exit. What does early repayment cost? How do I withdraw within 14 days? (Chapter 4)
9. Collateral and guarantor. What am I risking, and whom am I involving? (Chapter 7)
10. Lender. Is it a bank or a registered lender? Have I checked the public register? (Chapter 1)
11. History. Do I know what the credit register says about me? (Chapter 6)
12. If it gets hard. I will contact the lender before the first missed instalment (351) — Module 23.

What changes with Directive (EU) 2023/2225. The 2023 Consumer Credit Directive replaces Directive 2008/48/EC, which is repealed with effect from 20.11.2026 (Article 47) ✔. Member States had to transpose it by 20.11.2025 and must apply it from 20.11.2026 ✔ (Article 48(1); European Parliament, Legislative Observatory). Main changes ✔ (checked in the official text, 21.10.2026):

• the scope includes loans under €200 and "buy now, pay later" products; it excludes credit to acquire rights in land or buildings and agreements above €100,000 (Article 2(2)(b) and (c) ✔);
• advertising must be "fair, clear and not misleading" (Article 7 ✔), with a clear warning such as "Caution! Borrowing money costs money" (Article 8(1) ✔);
• clear pre-contract information and free adequate explanations from the lender;
• a ban on granting credit without your prior request and explicit agreement (Article 17 ✔);
• a stricter creditworthiness assessment with relevant data on income and expenses, without the special categories of personal data under the GDPR; human intervention in automated processing (Article 18 ✔);
• measures against excessive interest and costs, such as caps (Article 31 ✔);
• access to independent debt advisory services with only limited charges (Article 36 ✔);
• 14 days to withdraw and the right to repay early at any time (Articles 26 and 29 ✔);
• data on a cancer diagnosis may not be used for insurance linked to a credit after a period set by the Member State (no more than 15 years after the end of treatment; Article 14(4) ✔).

Example: Bulgaria — On 23.09.2026 Parliament adopted at first reading a new consumer credit law submitted by the Council of Ministers ✔ (Bulgarian News Agency (BTA), opened 19.10.2026). According to the report, it: keeps the APR cap of five times the statutory interest, but not for loans up to three minimum monthly wages; extends the scope to €100,000, including short-term loans, overdrafts, interest-free loans and "buy now, pay later"; introduces a stricter creditworthiness assessment; bans unsolicited credit (including pre-approved credit cards and raising a limit unilaterally without consent); and provides for registers of credit intermediaries and lenders at the CPC. This is a bill: the final text may change after second reading. Until it is adopted, the current Consumer Credit Act described in this module applies — on 21.10.2026 no new law has been published, and the Consumer Credit Act is in force, last amended in State Gazette No. 87 of 2026 ✔ (lex.bg, opened 21.10.2026).

Check in your country — Has your country adopted its law transposing Directive (EU) 2023/2225 (the deadline was 20.11.2025)? Look on the website of the finance or economy ministry, the consumer protection authority, or in the national official journal. Until it applies, the current consumer credit law remains in force.

Myth → truth

• Myth: "The new law will soon make loans safe, so there is nothing for me to check."
• Truth: the law regulates information and protection; whether a loan suits you is still your decision, and judging it requires a budget.

Who profits? The person who asks the questions before signing. The new rules help everyone, but those who use them benefit most.

→ Continue at the source

• European Parliament — Legislative Observatory, Directive 2023/2225: https://oeil.europarl.europa.eu/oeil/en/document-summary?id=1764052 ✔
• EUR-Lex — Directive (EU) 2023/2225: https://eur-lex.europa.eu/eli/dir/2023/2225/oj ✔ (full text opened 19.10.2026; re-checked 21.10.2026)
• Example Bulgaria: BTA — the bill at first reading: https://www.bta.bg/bg/news/bulgaria/1209748-gpr-po-kredita-da-ne-e-po-visok-ot-pet-pati-razmera-na-zakonnata-lihva-po-prosro ✔ (secondary but equivalent news source; a bill — not in force; in Bulgarian)