Is payday loans an advantageous option?

There are many ways to get a loan. Sometimes the options are so many that it is natural to be a little lost. For this, we will understand why payday loans is an advantageous option.

What is payday loans?

It is a type of free loan, which in itself already makes payday loans an advantageous option. That is, different from financing, it can be used for any purpose. However, it can only be requested by people with a formal job or with some INSS benefit. This requirement occurs due to the form of payment of the loan. Each month, the money is automatically debited from the bank account before it even enters. The advantage of this type of transaction is that, due to the greater payment guarantee, the bank can offer lower interest rates than in the traditional loan.

Why is payday loans an advantageous option?

In addition to your a loan where you can use the feature however you want, there are several other interesting advantages. Let’s list each one of them:

Quick Loan

payday loans is also an advantageous option because it is a very fast loan. Usually, the money falls into your account in less than 24 hours after being approved, and may vary depending on the institution. Because of this, it is useful for situations where an urgent loan is needed.

A lower salary

payday loans leave no option. You will have to live on a lower salary or retirement during the pay period. So be careful. It is good to keep an eye on the accounts, to know if the installments fit with your likely future expenses. It is necessary to fit the credit discharge into your financial planning, otherwise, an increase in debt may occur.

Credit analysis

Like any loan, payroll deductible credit can be denied. The bank will assess your debt history in addition to your current income and decide whether or not to approve it. However, this type of transaction has a special feature. As the payment is made from your salary or benefit, the total amount of the installment is calculated on top of it. According to the Central Bank, the share cannot be greater than 35% of the income. This can have some consequences when borrowing. If the value is high, the duration will be longer, so the interest may be higher. In this type of situation it is even more important to carefully study the best place to obtain credit. For help, visit our Contact Us and subscribe to our newsletter.

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