Revolving credit in Spain: Between financial inclusion and consumer risk
Revolving credit
Fecha: julio 2025
Aitana Bryant, Ángel Berges and Juana María Periago
SEFO, Spanish and International Economic & Financial Outlook, V. 14 N.º4 (July 2025)
Revolving credit has emerged as both a tool for financial inclusion and a source of concern in Spain, especially as its usage grows amid legal scrutiny and regulatory debate. Recent Supreme Court rulings demonstrate a need for clearer consumer information and greater transparency in contract terms, while European examples offer potential regulatory models. Although revolving credit remains a small share of household borrowing, close to 2%, its flexible features make it appealing to vulnerable borrowers. However, without robust consumer protection and financial education, the risk of long-term debt accumulation and exclusion from formal financial systems remains high. The implementation of Directive (EU) 2023/2225 provides an opportunity for Spain to enhance legal certainty, implement international best practices, and strike a better balance between access and safeguards.