When it comes to choosing which loan to take, it is important to be thoroughly familiar with the types of credit you can afford, for a conscious hiring. After all, the loan has to serve to help you, and not further complicate your financial situation.
Get to know the most important points of payday loan, advantages and disadvantages , that will help you make the best decision!
Advantages of the Payday Loan
If you are a civil servant, retiree or pensioner , consigned loan can bring many benefits to your financial life. Know the main advantages when hiring this type of credit.
The maximum interest rate defined by the Central Bank for the Payday loan revolves around 2.10% per month . Compared to other personal loans, where rates exceed 15% per month, the paycheck is well worth it. In addition, the interest is pre-fixed , that is, you know exactly what the value of the installments at the time of hiring. This amount will not change during the term of the agreement. That is, all installments will have the same value, from first to last, regardless of the term of the loan
One great advantage of Payday loans is what we call the assignable margin . This means that you can not accumulate installments that exceed 30% of your salary. For example, if your retirement is $ 3,000.00, you can only accumulate installments of loans of up to $ 900.00. That way, you do not commit all of your income, which helps you to not accumulate accounts and still keeps your financial life in order.
The hiring of the Payday loan is very simple, only personal documents, proof of address and, lately, a photo of you.
It is increasingly common to make this type of transaction for authorized applications . When borrowing is done online, you are more assured of user safety and timely follow up of your request. In addition, it guarantees extreme privacy and secrecy , since other people do not need to know their motives or the amount requested.
Often, the loan is a feature used to clear debts and clear the name, but there are all types of loans approved for people with the name with restriction. That is, at a time when a loan is so important, the doors usually close.
However, if this is your case, with the payday loan, you can get the credit to clear your name . For this modality no analysis is performed in credit protection agencies. Thus, you can pay off your debts with the lowest interest rate on the market. And, in addition, with very reduced rates, mainly if compared to other modalitiesIn the Payday loan, you can pay the benefit up to 96 times for public servants and 72 times for INSS beneficiaries. This way, you have the flexibility to choose the amount and hence the value of the plots. In addition, it is possible to make up to nine loans within its assignable margin, which is 30% of the salary value.
For example, receiving a salary of $ 1,000.00, you can use 30% in loans, totaling $ 300.00 of assignable margin. Within these $ 300.00 you can have up to nine lines of credit. The value and number of parcels varies according to your need and the consignable limit.
Disadvantages of Payday Loan
Although it has many advantages, we can not fail to show the disadvantages of Payday for you to make your decision consciously. Check below what are:
For the value of the installments to be smaller, the option is to split the loan amount more times. But, you have to be careful, as the installment can take a long time. However, if the client wishes, the installments may be anticipated and the interest rate reduced
It is possible to advance your installments so you can choose to pay an amount beyond what is expected and reduce interest on the remaining installments. But, there is no possibility of, by any necessity, you increase the amount of installments after the contract made. However, there is the possibility of refinancing the debt, which is the resumption of the contract and the release of an extra value without increasing the value of the installments .