Solving an emergency requires speed. A payroll credit can be authorized up to 5 business days and provide you with the amount you need. However, there are some details that you should evaluate before deciding if this type of loan is best for you. Are you interested in acquiring this kind of credits? Here we give you the details.
What is a payroll credit?
This is how fast loans are known that do not have a guarantee and whose payment is constant as it is charged directly from your payroll account. Hence its name.
The bank notes that these loans represent 23.5% of the total consumer credit portfolio. This is explained because no external person is required to serve as a guarantee, instead your payroll account is used as a guarantee of payment.
Although this ease of placement makes it a very attractive product, it does not exclude you from generating debts if you choose a type of credit that does not match your income and your lifestyle.
Advantages and disadvantages of payroll credit
To make your experience with a payroll credit the best, we recommend you consider the following.
- It is essential that you have a payroll account.
- Consider that the convenience of payment should not sacrifice your payroll savings, your current expenses or jeopardize work benefits that are deposited in that account.
- The loan amounts are based on your seniority and your salary.
- Includes extra insurance payments and account opening fee.
- Losing your job or leaving your account without funds would seriously affect your credit payment.
- The terms, in general, can be up to 60 months.
- The money they lend you has no specific destination, you can freely dispose of it.
- If you forget to pay for water or other services, automatic charges for this type of credit may be best for you.
Payroll credit or personal credit, which one suits me?
Personal credit is an authorized monetary amount that a debtor or client must pay in full, together with the interests stipulated in their contract. A payroll credit and a personal one can mean different use situations. Based on this, we recommend that you consider what is best to occupy.
For example, if you need to make the payment of an urgent medical intervention and you do not have the guarantee and care of medical insurance, but with a payroll account, payroll credit may be an option.
The speed with which these types of loans can be approved and their low interest rates mean that their use does not represent a great risk to the economy of those who request them. Unless, as mentioned above, do not consider what your payment possibilities are without neglecting daily expenses.
Depending on the type of investment you need, you can occupy a personal credit . This, unlike the payroll, lacks a guarantee that facilitates its placement. Therefore, it is likely that the interest rate is higher, in addition to the payment of the monthly payments will not be made automatically, but will depend on the credited.
It is best to look for an option that suits your finances
This option offers amounts of up to 350 thousand pesos with an average interest of 12%. This varies depending on the credit history and the person’s ability to pay, therefore, those with the best credit score will be able to get their credit at a rate of 9.9%.
It considers that, although the bank has registered the average interest rates of payroll credit as lower than that of personal credit , it is important that you look at indicators such as the CAT that includes additional costs to the rate of these products.
How to compare between one payroll credit and another?
Something very common for payroll credit is the collection of life and unemployment insurance. The first is to pay off the debt if you die. The second works as a payment amount in case a labor crisis occurs. Therefore, your monthly payments will not only impact capital, you will also cover these additional costs . Hence the importance of carefully reviewing your contract.
Remember to compare different offers to avoid overindebtedness. If you do not have the financial solvency to make these payments, you may want to find another form of financing that does not involve credit.
Following the recommendations of the National Commission for the Protection and Defense of Financial Services Users, to have a reference of the money we can invest in a payroll loan, all your expenses and your monthly savings are subtracted from your total income, and the result will be the money you can use to pay the credit.
If you still have uncertainty about how to find a credit option that suits you, we suggest you take advantage of the Personal Credit and Payroll Simulator. This page provides you with answers and comparisons to concerns about which is the cheapest CAT or what interest rate suits you depending on your income and the amount you wish to acquire.
Following these recommendations you will have a broad overview of the options available to get your payroll credit and reduce the chances of getting hooked with loans that harm your economy and leave you with unpayable debts.