The majority of Portuguese people who use consumer credit end up not indicating what they are going to use the money for, a practice that can be expensive. According to Executive Digest, a website specializing in business and current affairs, between January and October this year, 86% of the 36,995 credit applications submitted did not specify the purpose of the financing.
Indicating the destination of the credit seems like a detail, but it can represent a significant difference in the final invoice. According to the same source, only 14% of consumers reported what they would use the money for.
Among these, home works lead the list with 2,070 requests, followed by credit consolidation with 1,850 requests. Holidays (377), household appliances (335), furniture or decoration (201) and cars or motorbikes (162) complete the set of most common purposes.
Savings that can be significant
Tiago Pestana, credit analyst cited by the same source, highlights that declaring the purpose of the credit allows access to more advantageous conditions from various financial institutions. “We are talking about savings that can range from tens to hundreds or even thousands of euros over the life of the contract.
In some cases, a loan of 10 thousand euros to buy a car can cost 1,000 euros less than a generic loan of the same value”, explained the expert.
Banco de Portugal figures confirm this difference in interest rates. In the fourth quarter of 2025, the APR on a new car loan is 10.8%, which may fall to 5.4% in the case of a financial lease. On the other hand, the APR for “other personal loans” exceeds 15.6%, more than 10 percentage points above the rate for car loans.
The detail that makes a difference
According to Tiago Pestana, the lack of information and comparison often leads to less advantageous choices. Indicating the purpose of a loan seems like a detail, but it is crucial to guaranteeing relevant savings.
Furthermore, the expert emphasizes that ensuring the best proposal is even more important than choosing the right purpose. Therefore, using a credit intermediary can prove decisive.
It also warns of the importance of comparing offers and correctly filling out all the details of the financing request.
A small gesture, such as indicating that the credit will be used to purchase a car, can significantly reduce the final cost of the loan and avoid unnecessary payments over the years.
According to the same source, this practice continues to be little followed by the Portuguese, highlighting the need for greater financial literacy and attention when choosing consumer credit. The choice to inform the purpose is not just bureaucratic: it translates into concrete savings, which can reach considerable amounts.
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