How does No Credit Check sound to you. If you have bad credit Payday Loans Online is your place

What is a payday loan?

payday loan is a category of credit for individuals that has the payment of the installments directly discounted from their paycheck or their pension benefit. That is, it is a form of credit that necessarily requires that you are employed (in a public or private company) or that you are a retiree or a pensioner.

Benefits

Minor risk, lower ratesThe main feature of payroll deductible loans is their form of automatic collection and linked to a stable source of income. In this way, the risk of non-payment becomes very low. Because of this, it is possible for the lender to offer lower interest rates than other lending arrangements. The interest rates vary according to the amount contracted. If you are retired or pensioner, you can check the interest rates practiced by all banks on the website of the Ministry of Social Security. For other cases, rates are available on the Central Bank website.

Easier Contracting

Often the company in which you work or the body from which you receive benefits offers means to facilitate access to the payday loan. Because it is a loan linked to a company, syndicate or public agency, it is not necessary to present a guarantor, guarantee of property or other assets. This also makes it possible to credit people with records of default in credit protection agencies.

No delays, no fines

Since the charge is automatic, when hiring a payday loan, you will not have to worry about ticket maturities. Thus, you also will not have the worry of paying late fees.

Free Credit Opening Rate (TAC)

It is prohibited to charge the credit opening fee (or any other name that the rate can receive). And it is important that you, the consumer, know this to know how to choose the best deal when it comes to taking out your loan. Stay tuned for fees charged.

Term of up to 72 months

In 2014, the National Social Security Council approved the increase in the maximum period for payment of loans payable by INSS retirees and pensioners. Before, the maximum term was 60 months, currently this term has been extended to 72 months.

Disadvantages

Impacts in cases of job change or resignation

In this situation, the bond with your employer was terminated. However, your loan continues to exist. So if you have payables, they remain your commitment. First of all, see your loan agreement. Some of them include clauses that authorize the employer to deduct up to 30% of the amount of your termination to pay off the debt. It is important to know that even with this discount your debt may continue to exist, as the 30% may not be enough to settle the total.

It is necessary to negotiate the payment according to your new situation. To do this, talk to the bank that ceded the credit. You can renegotiate the payment terms by extending the term or by making the payment in advance of the installments due. In general, when you are disconnected from the employer with whom you borrowed, the interest rate increases. This is because the lender will have fewer guarantees that the loan will be taken away.

If you have changed jobs, see if your new job has an agreement with the bank that made your financing. If you have, simply transfer the debt to the new company in which you work. Payments will continue to come out of your paycheck. Does your new employer have a different partner bank? Compare rates. Making a new loan to repay at one go may have more advantages than paying for interest rates.

Less freedom to allocate plots

By having your payment deducted automatically, you will not have the flexibility to negotiate payments on different dates. That is, you can not avoid the discount of your benefit or your salary. In the event of an emergency, for example, you may run out of funds to pay higher priority bills. You need to be aware of this by hiring your loan so you do not get into debt using the overdraft, which has much higher interest rates than other categories of credit. The cheap can get expensive.

Fewer options when choosing the account for credit

Despite the facilitated hiring, it is necessary that your employer has an active agreement with the bank or financial institution that will effect the credit. This happens so that discounts are made on your payroll, pay stubs or counter-checks. If you move more than one account, your best credit limit might not be available at the bank where your employer is contracted. Thus, you may have your available value limited to a smaller amount and not in line with your profile.

The longer the term, the more interest to pay

Whenever you are financing securities, be aware of the effect of interest on interest (compound interest). Although the term for payment of payday loans is up to 72 months, it is necessary to analyze how much longer this will cost. Be aware of the relationship between the total amount to be paid and the benefit you will get when you take out a longer loan. It is worth trying to settle your loan in less time.

Now that you already know more about payday loans, look at these 5 tips to increase your chances of getting your personal loan approved . Do not forget: there are many other types of loans. Follow our publications and take advantage of what your savings can offer you.

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