There are several ways to get extra money for any project. One of them, which raises doubts, is the payday loan with check, through which the installments are paid using this means, with debit in the current account of the applicant.
The payday loan with a check is a real possibility for those who want fast credit, without paperwork and with several payment options.
This method of trading can be considered obsolete for day-to-day payments due to the popularization of credit card, and today it is only restricted to high-value expenses. However, it is still common for financiers to offer this type of payday loan.
It may seem risky for them to have this feature. However, since it involves a checking account and proof of income, it is advantageous for both parties to use it.
For those who do not have several alternatives to get extra money, this is showing a real chance to advance something that is being postponed for lack of funds.
Of course, all checks are pre-dated, which makes possible good planning for the settlement of the installments.
Next, have a comprehensive guide on check payday loans and enjoy this alternative when applying for a payday loan.
What is personal payday loan with check?
This is a fairly viable form of credit for anyone who has a checking account at any bank. It can be done for both self-employed and for those who have a CLT registration.
As the name says, installments are paid through pre-dated checks. They are also the guarantee instruments of debt repayment.
Checks are left with the financial creditor at the time of signing the transaction. Therefore, if you agree to pay 18 installments, for example, the same amount of checks will be filled, signed and stored until the date of deposit.
The dates for deposit in each check, according to what has been signed in contract, must be determined.
But how does the whole process work? Is it bureaucratic? How long does it take for the amount requested to be available in the checking account? What about payment terms? See the next item for details on how this operation works.
How it works?
Just like any similar transaction, the payday loan with check is granted after evaluation and credit approval. The sheets are then delivered to the creditor company, duly completed, signed, and dated.
The amount is credited to the checking account within 24 hours and it is common that a longer time is given for the deposit of the first check – between 45 and 60 days.
The money is available in the current account of the applicant or his guarantor in a very short time.
This is a general rule, but every financial one has its own particularities and it is important to consult them before closing deals. In order to have more advantages in the operation, it is convenient to compare the proposals, mainly the interest practiced according to the number of installments. As usual, the more times, the higher the amount to be paid.
See below for more information on how to settle the installments, as well as general questions about this point.
How is the payday loan paid?
Once the checks are in the power of the financier when signing the agreement, they are deposited in the determined dates. Generally, it occurs once a month, the same day or the next business day, in the case of Saturdays, Sundays or holidays.
If there are no funds at the time of cashing the checks, the documents are protested and the name of the current account holder becomes part of the registration of credit protection agencies. Soon, he becomes defaulter and his credit is seriously impaired.
A payday loan with a check can be paid in at least 3 and at most 36 installments. Because a check is deducted per month, this term can extend from 3 months to 3 years. Deadlines are determined when signing the contract.
When a person thinks about getting a payday loan, one of the first things considered is in relation to the interest rate practiced. Check now that the payday loan with check has good indexes.
Compared to other payday loan modalities, using a check as a form of payment pays off more because it has lower interest rates. This happens because the checks serve as guarantee of payment, since there is the anticipation of values.
The numbers vary between 4 and 6% per month. Therefore, they are much smaller than using the overdraft or credit card limit, for example.
This variation is due to the fact that each financial institution or bank has its own interest and negotiation policy. Before signing a contract, it is worth checking possibilities in this sense, since there is always a more rewarding proposal.
So, check out the requirements that customers normally make at the time of signing the contract. Of course, they may vary according to the lender, but some requirements are general.
What are the requirements to be followed?
The negotiation is carried out after fulfilling some requirements, which can also be observed in other payday loan modalities Photo.
As is common in any credit operation, some requirements must be met when applying for a payday loan with a check as a form of payment.
The first of these is that the slip used for discharge of the amount to be paid and, of course, the related checking account must be held by the requestor of the transaction. Some banks or financial institutions may negotiate other people’s checks, especially if they are guarantors or guarantors.
There is yet another way to rely on third-party resources to get the business done (see details in a topic especially dedicated to this subject).
Another requirement is linked to the account opening date. It can not exist just to make the business viable, but to be up and running for a minimum of 6 months and have recent financial turnover.
If the bank or financial organization deems necessary, there may still be a need to prove a minimum income through pay stubs or other documents.
Does such a payday loan have many benefits or is it similar to other forms of credit? In the next subtitle, have more information on this subject.
What are the advantages of a payday payday loan?
This type of payday loan makes it possible to get lower interest rate credit in the short term, which makes even more urgent borrowing possible.
The first one is that interest rates are lower than in other types of payday loans. In addition to the checks that serve as proof of payment, a document that covers income is an essential item, which in itself already drops the indexes.
Another benefit that can not be ignored is zero bureaucracy in the course of negotiations and also in making the amount available. Previously, you saw that money can be in the account in just 24 hours, which is perfect for anyone who has an urgency to use this amount. It is worth mentioning that there is no intermediation in the deposit of money.
Between the credit assessment and the offer of the amount, there is usually a short time. To make the operation even shorter, it is important that the requester quickly submits the required documents.
And what about people who have credit restrictions, how does it work? Can they use the check to get a payday loan? Should the bead be owned by yourself or by someone else? Find out now.