If the lender believes that the loan applicant will repay the loan in time, he will agree to provide the loan even though it is a long term loan. This way, he is guaranteed that the loan will be repaid. In most of the cases, a loan is provided for any other type of loan.

The main advantage of taking money loans

It is the ease at which it is approved. If the lender does not approve the loan amount in time, then no one will suffer any financial loss. People have to pay the loan amounts on time because if they do not, the lender may take legal action against them. Lenders also prefer this option because there is no chance for default.

But if you do not have the money for the loan amount, you have to face the consequences. If you fail to make repayment then you could face a jail term and a heavy fine. In case of bad credit, the lender may not grant you any loan amount at all. So it is very important to check your credit report before going for any loan.

You can use these instant loans – Bridge payday for any other purposes like buying a car, wedding, vacation, education, etc. So, you can fulfill your urgent needs with the help of these loans.

While applying for these loans, you should make sure you provide complete and accurate information because the lenders want to verify all details before sanctioning the loan amount. The lender may also ask for some proof like bank statements, salary slips, income tax returns etc.

The repayment period of these loans depends on the monthly income

The longer the monthly income of an individual, the more is his eligibility to avail the loan. Usually, the loan is granted to people who earn above a certain amount and the monthly income is not more than that. The loan is given in monthly installments so that you can afford the installments.

The loan amount is very small compared to the monthly income and the interest rate is also very low. So it is easy to pay back the loan amount. Even though these loans are easy to pay back, the loan taker has to bear the total interest amount.

Another benefit of these loans is that the interest rates are different from lender to lender. You can easily apply for these loans by contacting a good lender in your area or even online.

There are many lenders in the market that provides these loans to the bad credit people. You can compare their quotes and find the best deal for yourself. If you are having poor credit history then these loans are not a solution but the only solution is to get a secured loan.

A way to solve the problem of bad credit is to open a card

You can use credit cards to pay the loan amount and you will be able to repay the money without any hassle.

You should also check the terms and conditions of the credit cards. The credit cards must offer the best interest rate so that you can easily repay the loan amount with the help of card.

When bad credit is experienced due to some reasons, it is easy to apply for these loans as long as there are no problems in the credit history of an individual. These loans can be obtained even with bad credit and the only thing that remains is to negotiate and find the best deal.

Small personal loans are a great way to get things you need for emergencies. There are a lot of different types of small personal loans and finding the best one for you may be hard. Make sure you know what you need before you apply for the loan so you will not end up with a bad loan.

People get emergency money for many reasons. Sometimes they are short on cash or do not have enough for a big purchase, like a car or home. The small personal loans are used for emergencies, so be prepared for that.

You can use cash advances for emergency needs. These cash advances will be applied to your monthly credit card payments if you get approved. Cash advances are usually just a phone call away as long as you know where to look.

Some of these loans can be paid back over a number of months. They usually last for five to seven years. This is a great option for a lot of people. It allows them to keep their credit score up while they are trying to pay off their debts.

If you are going to use a cash advance?

If you are going to use a cash advance, and it turns out that you do not need all of your money right away, consider debt consolidation. Debt consolidation is when you transfer all of your debt to a new loan to pay off. Your credit rating will not be negatively affected by this, but your monthly payments will go down.

Usually, this type of loan is available only to people who have bad credit. If you have good credit, the lender can still consider you for the loan. It does not hurt your credit, but it can help it.

If you have bad credit, you probably know how difficult it is to get a loan. Having a bad credit score is the same as having poor credit. If you want to get a cash advance, you might have to wait a while to get approved, but you can at least take it a step further by trying to consolidate your debt.

An important thing to remember before you take out a loan is that there are many ways to make money. While personal loans can help you in some situations, it is not something that you should use every day. They can be a great financial tool for emergencies, but not for a long term basis.

Another reason to avoid small personal loans is because of the cost of the loan. While they do have a low cost of borrowing, they can add up quickly. If you do not intend to pay the loan back, it is not a problem, but if you do intend to pay it back, you will end up paying more.

The best place to look for small personal loans?

The best place to look for small personal loans is online. This is because you can find a lot of great deals online. You also have a much better chance of finding a deal if you search for your loan locally.

No matter where you get your small personal loans, make sure you do not skip important details. Do your research and do not settle for the first offer you see. Do not make assumptions about what you can afford, or how much you can borrow.

Do not be afraid to ask questions when it comes to getting personal loans. Ask about the interest rate, payment options, and any fees. You do not want to get caught up in a cycle of making multiple small payments when you do not have to.

MYTH 1: If the bank doesn’t want to give you a loan, you shouldn’t take a loan

This belief prevails, especially among older generations. They often believe in the infallibility of banks. However, many people faced a situation where, being in a great financial situation, the bank refused them credit.

The truth is that banks’ activities are often complex and unclear. It’s very easy just not to meet the bank’s requirements. Often, making one minor mistake will result in you receiving an email saying “we rejected your credit application number …”. Unfortunately, in most cases, you won’t even know what you did wrong and why you received this decision.

For non-bank loans, formalities are kept to a minimum. However, if something does not agree, then very often the company granting such loans calls you to clarify the situation.

Myth 2: Non-bank loans are dangerous

A very common argument is “a non-bank loan without a credit check and credit history is dangerous.” At the same time, it is enough to ask how these people know about it. Most often, the source of such beliefs are various companies and series in which people taking loans were harassed by telephones and threats.

However, here you should think about how much this series has in common with reality. Mostly very little. Non-bank loans are the most secure. Today, every company operating legally in Poland has transparent regulations. If you have any doubts about it, just read it carefully. You will understand then that when you take a non-bank loan you have nothing to fear.

Also, remember that every company operating in Poland and granting non-bank loans without a credit check and credit history is subject to the same Polish law as banks.

Myth 3: Non-bank loans are illegal

Since banks, when granting loans, check creditworthiness at credit checker and credit history, it means that companies that do not do so operate illegally – that’s what some people think. At the same time, this is obviously not true.

Non-bank loans are legal and are subject to Polish legal regulations. Although they are not so controlled by the state, you will still find a register of loan companies kept by the Association of Loan Companies on the website of the Polish Financial Supervision Authority (KNF). In addition, the PFSA may take appropriate action in relation to companies granting non-bank loans. That is why such actions are absolutely legal.

Myth 4: We always get a non-bank loan

Some people think that non-bank loans are granted in every situation. At the same time, this is not the case. Although formalities are kept to a minimum, in some situations non-bank loans without a credit check and credit history cannot be granted. An example is a situation in which it is not possible to verify the identity of an applicant for a loan. In this situation, for security reasons, the person applying for a loan will not receive it.

Myth 5: Taking loans outside the bank will fall into a spiral of debt

In fact, falling into a so-called debt spiral (where one loan is paid back to take another) has nothing to do with non-bank loans. It depends more on the person’s approach to life.

You might as well fall into such a spiral of debts by taking loans from banks. However, in this case, such a spiral may reach the amount of even tens of thousands of dollars, while in the case of non-bank loans of several thousand dollars. Of course, when taking non-bank loans without a credit check and credit history, you must remember that you have to give back the money. Failure to pay the loan over time involves additional fees.

Myth 6: Every company offering non-bank loans does not check credit and credit history

Each company that offers payday loans and non-bank loans determines how it offers its services. Some companies do not check credit, others credit history and yet others check both registers. At the same time, each loan company clearly informs where and how it checks the applicant. And if you have any doubts, you can always contact the customer service department and ask if you can take a non-bank loan in this company without a credit check and credit history.

Myth 7: Non-bank loans are expensive

Some people are convinced that by taking a non-bank loan they are exposed to higher interest rates than in the case of a bank loan. At the same time, it is worth remembering that this is not always the case. The truth is that there are many companies offering non-bank loans without a credit check and credit history. There are also many banks offering loans (in addition, there are often different loan offers in one bank). Therefore, it is difficult to explicitly issue a verdict, which is more profitable.

Sometimes the interest rate on non-bank loans is lower than on bank loans. In addition, it is worth paying attention to the fact that when taking a non-bank loan, you can determine the loan amount much more flexibly. Instead of taking a loan of USD 1000, you can take e.g. USD 600. Even if the interest rate is higher (e.g. 8% instead of 6%), the costs associated with the loan will be lower because you have borrowed a smaller amount.

Summary

There are many myths about non-bank loans without a credit check and credit history. In this article, we only covered the most important topics. If you have any other doubts about taking such loans, leave a comment under the article and describe your thoughts there.

In this site we have a solution to your financial problem: it is about the wonderful Loans in the online act that can be ordered online and receive in a matter of minutes. The online credits of our platform have almost no requirements and are designed for everyone.

If you are in need of urgent financing but you can not apply at the bank, we recommend that you look within our selector for the different cash loans that we have for you. The small credits that we grant do not need to present papers beyond an extract of your bank account (to show that you are the owner) and a scan of your identity document, it is about loans in the act without requirements. In our portal, we love helping people who can not access any conventional credit.

Fast cash transfer direct payday loans online 

Internet is a great tool that, in addition to serving us to communicate or search for information, is also ideal for making purchases, placing orders and even requesting Loans on the spot. Citrus North announced that their payday loans direct lenders are one of the fastest, most comfortable and accessible methods that we currently have in order to obtain money now.

Banks have lost the “human” factor and are not sensitive to customer problems. For them, everything is numbers, accounts, and data. There is no trust or common sense and that is why they only lend money to a certain “circle”. This is not the case on our site where we really want to help you. We have a wide range of personal loans and insurance there is at least one that suits your needs. You can solve your small last-minute expenses, those unforeseen events that cannot wait a single day.

We are proud of having transformed ourselves into an online financial institution charged with filling a gap and solving a need of the Mexican population. Loans in the act are intended to help our clients in the best way possible. For us, it is not the same that you have debts and that you are in financial difficulties. That’s why we look for the best possible rates and financing. Our philosophy is very simple: grant money to everyone so that everyone has a new opportunity through personal loans fast online.

What are the requirements of the Loans on the spot?

You should not meet almost any requirement. The requirements are minimum so that everyone can access the Loans in the act without truth. You will be able to get the money you need without paperwork, without lines, without wasting time and without unfair questions accessing cash loans only with ID.

In addition to being of legal age (this is something that the law requires) the only conditions that you must fulfill are: to be a legal resident in Mexico (either by birth or by choice), to have a valid identity document, to have a receipt or extract with the account number where the money will be transferred, a cell phone number to communicate and an email address where you will receive the key to the acceptance. Millions of people meet all the requirements!

It will be difficult for you to find a web page that offers you as much as ours. We have different types of Loans in the act, either mini-credits with a value of up to X Mexican pesos or credits of greater quantity (between A and B Mexican pesos). In any case, the process is very simple and only takes a few minutes.

How much time do I receive the Loan money on the spot?

The maximum period of approval of these urgent online personal loans and transfer of money is 24 hours and in many cases, this “delay” is due to the characteristics of the bank of which we are clients.

Even if you do not have a job, can not get an endorsement or are registered in a list of debtors, you can apply for one of the many Loans in the act without a salary receipt that we have available. Enjoy the liquidity you have always dreamed of, solve your financial problems with these loans in cash without a salary receipt without waiting for the next pay or receive the rent and settle your debts with the best market conditions either physical or online.

Take the test: enter in the selector of our home page, choose the amount and the lapse of return, complete the registration form, send the attachments you think convenient and wait for our contact. When you receive the confirmation that the loan has been approved, it only remains to wait for your bank to show it in the statement of the account. And then it’s a matter of using the cash if you withdraw it from an ATM. You can also take advantage to make a payment online or even make a bank transfer to the desired destination. It’s all very easy.

Definition

Loan whose guarantee is based on a mortgage. Mortgage credit is generally used to finance a real estate acquisition or to carry out work. Since the March 23, 2006 surety reform and the introduction of the rechargeable mortgage, it is possible to use it to secure several successive loans .

The different varieties of mortgages

The contract that binds the borrower to the lending institution falls under the conventional mortgage . It can be established only in authentic form, which explains the formalism that surrounds it and the obligation to resort to a notary.

Mortgage registration can only relate to property owned by the borrower. It is therefore useless to propose the good of a close to guarantee the loan.

The rechargeable mortgage

Introduced by the 2006 reform with the aim of boosting consumption, the rechargeable mortgage allows the guarantee to be used for new loans (1). It requires the drafting of a new authentic deed and must follow the same formalism as for any loan and in particular be the subject of a prior offer in which is indexed a mortgage situation of the building put in guarantee .

(1): It is possible to borrow from another bank than the one listed first.

Mortgage life loan

It is a very particular application of the mortgage, still quite unknown and sometimes criticized for the risks it entails. It must be said that the consequences can be disastrous if the mechanism is not adapted to the situation of the borrowers.

Principle

The particularity of the PVH is to postpone repayment of the loan on the death of borrowers. It is perfectly suited to the situation of pensioners. It should be noted that the capital may be paid in one-time or annuity form, the use of funds remaining entirely free. The risks are mainly of 2 types:

1. A high cost of credit : Unreimbursed interest is capitalized, meaning that each year the interest in turn produces interest, magnifying the debt from year to year.
2. Inherited heirs of a patrimony : the latter may however decide to keep the property by repaying the loan themselves. In the opposite case, the bank will proceed with the sale of the property, the balance eventually entering the estate assets.

Good to know: only a few specialized organizations such as the mortgage lend this type of financing.

Refund

It occurs when the borrower (or co-borrowers) dies. However, it is possible to repay all or part of the capital before the term. In this case, the lending institution may require early repayment indemnities, provided that they have been provided for in the prior offer.

Formalism

The contract must be authenticated by a notary, which, despite the cost of the formality, has the advantage of being advised by a public officer and being informed of the risks involved.

The obligations of the borrower

The guarantee based on the value of the property , it is obvious that the bank will ensure that the general condition of the mortgaged property does not deteriorate over time. It must therefore be maintained in such a way that its resale price does not fall.

Bonded Mortgage: Avoiding Insurance

An original alternative, the secured mortgage loan provides financing without meeting the insurance obligation. It allows to obtain a capital of up to 70% of the value of mortgaged assets over a period of up to 25 years. Unlike the PVH, the debt is repaid (capital and interest) periodically. In return, the lender imposes to subscribe to a mutual guarantee.

The lender privilege of deniers

Another real security, the IPPD has the advantage of being more economical than the mortgage since it does not require land registration . However, its scope remains limited as it can only apply to existing goods. It is therefore impossible to allocate it to financing the construction of a single-family house or the purchase of an off-plan apartment.

Raised hand

Another disadvantage of the real securities is that they require a release in case of early repayment , which banks do not always specify when subscribing. This is a percentage that applies to the original amount. For example, count € 770 for a borrowed capital of € 150,000.

You can also contact them if you already have several loan with another lender. GA Finance will then investigate the possibilities for merging your current loan into a new loan. Often this results in a considerably lower interest rate than you are used to paying and that saves considerably in costs.

Procedure

From the moment your response is registered with them, they will send you a confirmation via e-mail that your request has been received. The sooner you respond to this, the sooner they can inform you of the result of your application. In general, after completing your application completely, you can expect the answer within 2 hours.

Pay attention. If you have been in arrears in the repayment of your loan for a period of more than 3 months, you will be listed on the blacklist. If you are listed on this ‘black list’ they can unfortunately not be of service.

All costs for the loan are included in the Annual Cost Percentage (APR) or the interest charged on the loan amount. You do not have to pay any other costs outside of your monthly charge.

The repayment of the credit agreement is done with the help of a standing order. In this way you ensure that you always meet your obligation on time. A good tip, always check this, you would not be the first of whom the permanent assignments disappear or are blocked by all kinds of causes that have nothing to do with you.

The self-employed can also go to GA Finance. However, there are 2 conditions:

You have been self-employed for more than 2 years

You are in possession of an income tax assessment notice for a full financial year.

If you have a temporary employment contract, you can only turn to GA Finance if you find someone in your family or acquaintance with a permanent employment contract willing to enter into the agreement with you. However, we strongly advise against this.

If you work on the basis of an interim contract, the period must certainly be longer than 2 years.

You can go to GA Finance from the moment that

• You are of age (18 years)
• You are employed on a permanent basis
• You have a seniority of at least 1 year.
• The age limit has been set at 75 years.

The online application module

The online application module at GA Finance is very simple.

You indicate how much you wish to borrow, adjust the repayment time and you will immediately see how much this will cost you.

Then complete the no-obligation application form for an installment loan and click on ‘Send’.

An employee of GA Finance will call you as soon as possible in connection with your loan.

This way your application can be fully discussed with you.

We also see many online brokers who today refuse to support requests from entrepreneurs who do not have at least 20% contribution.

Form the application file with the bank

The constitution of a professional credit file takes a lot of time, because the bank asks for many documents.

List of documents to provide

• 3 last balance sheets or estimated over 3 years if it is a creation with cash flow plan.
• Statutes if it is a company created or draft statutes if society in creation
• Two-sided ID card of the leader
• Proof of residence of less than six months
• KBIS excerpt of less than three months for incorporated companies
• Details of the request with presentation of the situation (purpose of financing, current situation, commercial objectives of the company …)
• Latest bank statements (from 3 to 6 months following the banks)
• Manager’s financial situation (personal account statements, amortization tables for outstanding loans, last tax statement, current investment statements)
• Compromise or promise to sell (if it is a real estate acquisition).

Which address ?

The first reflex would obviously be to answer: “to your bank”. Even if the latter is to be effectively consulted, experience proves that it is necessary to put it in competition, either because you may face a refusal or because the proposed conditions are unsatisfactory.

You can also consult the brokers, present on the Internet, provided they have a local physical relay. Only a bank near your home or business may be interested in your file. We advise you to contact several to play the competition.

Remember to ask these few questions before granting your trust.

• How long has the broker been in?
• Is he registered with ORIAS?
• Is it up to date with its professional liability insurance and financial guarantee contributions?
• What is the amount of his fees?

What is the repayment period?

The duration varies from one bank to another and depends on the nature of the request. These are generally short- and medium-term loans of up to 7 years or even 10 years for the longest periods.

Can we get funding without contribution?

The question is very current because the demands of professional credit without contribution are more and more numerous. If the demand is for an existing company with excellent balance sheets, it is safe to say that the funding will not be a problem. If on the other hand, the request concerns a company in difficulty , it will obviously be more complicated.

Be aware, however, that for a temporary cash flow problem or for a single deficit year, the bank’s commitment department will be able to establish a sufficiently broad appreciation of the situation.

If the goal is to create a company , you have to admit that it will be very difficult to find funding without a significant contribution. Some brokers refuse to take care of customers who do not have a minimum capital.

The average contribution required by the banks is of the order of 20% , but again everything will depend on the situation of the company, the amount of loan requested and the quality of the project (imply its potential for profitability) .

With or without input, know that if you have a real professional know-how in your field of activity and even better if you have already practiced as a business manager , your experience will weigh a lot in the balance.

What can I finance?

The needs covered are varied and may concern:

• The purchase of equipmentThe purchase of real estate (often professional premises)
• Inventory purchase
• A capital increase
• The acquisition of capital goods
• The purchase of transport vehicles
• A cash need

In a general way everything that is financed by the company. It should be noted that the cash requirements are more generally the subject of a demand for overdraft authorization. To cover this need, it is simpler to go to one’s own bank, because an outside establishment will never accept to intervene in a company in difficulty.

For each project its loan

The term includes a whole series of devices that will allow you to receive funding without having to justify the expense. It therefore falls into the category of unrestricted loans .

I need a cash advance

Depending on your needs and the situation you are in, you have 3 options available.

The authorized overdraft

If your need for cash is between 500 and 2000 euros, you can ask your bank for a credit overdraft provided you negotiate the rate because the levels of agios practiced often flirt with the rates of wear.

However, well-negotiated, the overdraft solution has the advantage of having real flexibility ( no repayment plan imposed ) and settle the debt over a very short period. Be careful not to make a discovery without obtaining a written agreement from the bank, which would cause significant financial costs.

Request an advance from your employer

You do not always think about it, but a simple payday advance can solve a temporary financial problem. If you want to fill a bank overdraft of a few hundred euros or face an unexpected expense and your boss is understanding, know that a payday has two advantages:

1. You benefit from a personal loan without interest.
2. You can negotiate the repayment of the deposit over several months.

I want to finance a favorite purchase

To finance a sudden expense or an impromptu expense (decoration, appliances, computer equipment, etc.), all personal loans may be suitable. The choice of duration will obviously depend on the amount of your purchase and your repayment capacity.

Be aware that major retailers often offer to finance the purchase through their subsidiaries or partnerships with major banking groups.

Our advice: if you finance your purchase through a loan, remember to specify it on the order form. Thus, in case of refusal of funding by the store or your bank, you will benefit from the protection of the Consumer Code and you can denounce your acha t.

I have to replace my car

But take the time to compare the dealership proposal (all car brands offer a financing solution) with your bank’s. In general, the lenders do not require the vehicle to be pledged. If this were the case, remember that you can only sell your vehicle if the loan is settled

I will do some work

The type of funding depends on the amount of work. If you borrow more than 75,000 euros, you have to opt for a mortgage, which will allow on the one hand to benefit from a cheap rate and on the other hand to repay over a longer period (10 or 15 years) , which will reduce the monthly payment.

Below, an assigned loan will do the trick. The rate will be higher than a mortgage and the duration will hardly go beyond 7 years .

I want to help my children

If your children are pursuing long studies, be aware that many banks seek to attract future graduates by offering them personal loan formulas at 0%. However, a student loan needs to be a guarantor. Also think of public subsidies like OSEO that offer student loans.

Some alternatives

Borrow abroad

Many borrowers facing a refusal from a French bank are turning to financing solutions abroad. If you are considering such a solution, know that requests rarely succeed. Foreign banks are demanding in granting credit to non-national borrowers .

Loans between individuals

This is a popular formula that can work if you are careful to avoid the pitfalls. And they are many. Apart from the case of the family loan that we will not deal with and which is probably the best formula, obtaining a personal loan from an individual requires to respect a strict formalism (tax declaration among others).

On the other hand, many pitfalls await you as we indicate in our file on loans granted by individuals. Prêt-d’Union remains to this day the only body benefits from the ACP (Prudential Supervisory Authority) approvals necessary to exercise and strong shareholdings with Crédit Mutuel and AG2R LA MONDIALE).

Make a simulation

To simulate your personal loan, simply follow the instructions on the form. You can in just a few minutes, compare all the bank offers . Play the competition and take the time to think. Remember: whatever the amount and duration, a credit commits you.

If your request is for financing of less than one thousand euros, we advise you to pay back over a short period to reduce the overall cost. In any case, for small amounts, you will hardly find offers over a period of more than two years.

As you can see in the table above, the 12-month personal loan is the most economical solution. Beyond a period of one year, the rates quickly become dissuasive.

Regulations

You benefit from the protection of the Consumer Code if your personal credit is between € 200 and € 75,000. The Law requires banks and major retailers to specify on the advertisements and offers the APR (annual percentage rate of charge) which takes into account all the costs impacting your loan.

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But after all, what is paycheck card and how to benefit from its advantages?

Payroll credit card is one in which the minimum amount of the invoice is automatically deducted from the paycheck or INSS benefit . By having the minimum payment already discounted, it has rates up to 5x lower than traditional credit cards

This type of card can be used to make and install purchases. In addition, it is also possible to cash withdrawals (in 24 hour networks, when this option is available).

So knowing how this credit modality works can help make better choices.

How does the Consigned Credit Card work?

Like other cards, the consumer receives a credit limit from the bank to spend and to pay their expenses.

Then, the amount of debt is paid monthly to the bank, by the credit invoice. What changes is how this payment is made.

When set aside, part of the invoice amount is automatically debited from the paycheck. Thus, at the maturity date, the amount of 5% is deducted directly from the INSS paycheck or benefit .

The payable margin of the payroll deductible credit card is 5% of the net monthly income . This margin is an additional margin of 30% that is used for loans.

That is, the margin of the card of 5% is exclusive, so even those who have already committed the entire margin for loan, can acquire the card.

Check out this handy example to understand how the payment of the credit card bill can be made.

Therefore, if the amount spent has been higher than what was debited from the account, the customer can make the additional payment in the amount you wish, paying the invoice bill, until the date of its expiration, in any bank.

The holder can also choose to keep only the monthly consignment. If you make this option, the balance difference will be added to the total of the next invoice.

The card limit value can also be withdrawn and deposited into the account holder. The minimum amount (5%) is discounted in the same way, monthly, and the balance paid returns as credit limit.

See who can hire the consigned card and take advantage of its benefits.

Who can make a Consigned Credit Card?

Who can hire a paycheck credit card?

Although it is a more accessible personal credit line, paycheck card can only be requested by some groups. So find out if it is recommended for you!

The payroll deductible credit card is intended for Retirees, Pensioners of the INSS and Public Servants, as well as Military of the Armed Forces and Workers of private companies .

To hire you, the interested party need only have a source of fixed income that has an agreement with one or more banks that do this type of operation.

The documents required for the payroll deductible credit card application are:

• RG or CPF;
• Proof of residence;
• Proof of income.

Retirees and Pensioners INSS, can only contract the card in the State of receipt of the benefit and in banks agreed .

Federal Public Servants – SIAPE, must issue the Authorization of Consignee in SIGEPE, to have access to the card.

Another rule is that it is only allowed the issuance of a card consigned by CPF or holder .

What are the limits and interest of the Consigned Card?

The limit granted to INSS beneficiaries is up to 25 times the margin value of the card. For Federal Public Servants (SIAPE) , the value can reach 27 times.

The rates charged by banks and financial institutions revolve around 3.00% to 4.5% per month. Even the revolving credit rate is much lower, averaging 3.50% per month. Amount well below the interest of the overdraft or the conventional credit card.

And the differences do not stop there! Check out the 10 differences between the payday loan and the conventional credit card.

10 differences between the Consigned Credit Card and the Credit Card

Much is talked about credit card options. So it’s worth comparing them to find out what is most advantageous for your pocket or need.

1) Average interest rate

The average interest rate on credit cards can cause the initial debt to increase greatly.

• Conventional credit card : from 12.00% to 15.00% per month;
• Paycheck-deductible credit card : from 3.00% to 3.50% per month;

The fees can vary depending on the policy of each bank and depending on the type of card.

2) Payment method

The invoice of the purchases or withdrawals made from these cards are carried out differently:

• Conventional credit card : via invoice or automatic debit;
• Payroll deductible credit card : minimum value of 5% discount on payroll or INSS benefit. The remaining balance can be paid via ticket.

3) Monthly payment amount

The installments or monthly installments can be paid in full or in part:

• Conventional credit card : payment of full or minimum amount (minimum payment subject to revolving credit rates);
• Paychecked credit card : payment of the minimum amount of 5% discounted directly from the paycheck. The unpaid additional balance is automatically added to the next month’s invoice (subject to revolving rates).

4) Payment date

There are also differences from the date allowed for debt payments.

• Conventional credit card : It is possible to pay out of time (extras will usually be added on the next invoice);
• Payroll-deductible credit card: minimum amount discounted at maturity. Payment of the surplus balance can be paid after expiration (accruals will usually be added on the next invoice);

5) Conditions for releasing credit

Unlike the conventional card, the paycheck-deductible credit card can be issued to retirees, pensioners or public servants, even if they are denied.

• Conventional credit card : credit blocked for negatives;
• Paycheck credit card: credit released for negatives ;

6) Deadline for payment

Some card options offer grace and extended deadlines.

• Conventional credit card : on average 30-35 days;
• Paycheck credit card: can arrive up to 50 days (variable condition depending on the policy of each bank or card issuer);

It is important to remember that whenever a debt is not repaid in the original term, it is subject to interest.

7) Installment option

In addition to the payment installments, the invoice can also be split again, in both cases. The conditions may vary depending on the credit policy of each institution.

• Conventional credit card: payment of invoice can be paid in up to 48 months;
• Paycheck credit card: payment of the invoice can be paid in up to 72 months;

The longer the payment term, the higher the interest rate.

8) Annuity

Annuity is usually a common rate of credit cards. However, this rule changes with the consigned:

• Conventional credit card: charged, in most cases;
• Paycheck credit card: exempt, in most cases;

9) International card issuance

Seen to an advantage, international flag cards often make life easier for travelers.

• Conventional credit card: yes;
• Paycheck credit card: yes;

10) Cash withdrawals

In some cases, the credit card limit can also be used for cash withdrawals.

• Conventional credit card: yes;
• Paycheck credit card: yes. Withdraw up to 96% of the limit granted, depending on the bank.

But in the end, which one is better? The answer to this question will depend on your need. However, the two types of credit have advantages and disadvantages, which should be evaluated.

Advantages and disadvantages

Like any loan, the consigned card has advantages and disadvantages. Understand what they are.

Benefits

• Minimum amount of the installment is deducted directly from the salary or benefit;
• Without consultation with SPC / Serasa;
• Rates starting at 3.00% am
• Accepted in several establishments (depending on the flag of the card);
• Cash withdrawals (variable condition depending on the policy of each bank or card issuer);
• Loyalty program (variable condition depending on the policy of each bank or card issuer).

Disadvantages

• The minimum payment of the invoice is automatically deducted from the salary or benefit (it is not possible to cancel the debit);
• Interest greater than the payroll loan;
• Some carriers may charge card issuance fee;
• Higher debt risk if not controlled.

Another important assessment to be made by those who are looking for credit and money in the short term is the comparison between credit card and payroll loan.

What is the difference between the Consigned Credit Card for the Consigned Loan?

Although they are similar in some respects, there is even a difference between the appropriations earmarked.

For example: with the card, part of the credit available is for the payment of the invoice. Already in the consigned loan the money can be used in the way that the consumer prefers.

In practical terms, we can say that because of this difference, in the loan the amount granted is higher. The installments can be worth up to 30% of your income or monthly benefit.

And is it possible to use both at the same time?

The answer is yes. Provided the consignable margin does not exceed 35% of the ceiling allowed . Respecting, in this way, the 5% for the consigned card, which is the maximum limit for expenses and withdrawals.

So is it worth making the paycheck credit card?

This card is an interesting option compared to ordinary card and other credit lines. One of the reasons, as already mentioned, is that the other modalities present higher interest rates.

But it is important to remember that even if interest rates are lower, any credit should be used consciously.

Thus, using the consigned card in cases of real necessity, it is possible to have access to all the benefits, without harming the budget.

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