How does payday loan work?
Make those who still think that there is only one type of credit or credit card to help with financial expenses.
Today, banks offer various modalities and credit limits to meet different needs.
There are, for example: prepaid, debit, credit, payroll deductible, national, international, gold, platinum, corporate cards, etc.
Find out now how payroll credit card works and the key differences compared to other cards .
What is payday loan?
It is the one in which the invoice is discounted every month direct from the paycheck or INSS benefit. And this, within the limit of up to 5% of net income .
This is one of the personal credit options available that can make life easier for those who need money in the short term.
It can be used for withdrawals or for installments in the purchase of goods and services .
Still in doubt about how paycheck credit card works? So enjoy to have all the doubts answered.
Who can apply?
Retirees, Pensioners, Public Servants (active and inactive), Private Enterprise Workers and Military of the Armed Forces.
These are the groups that can get the paycheck credit card. The transaction can occur either in the bank where they are account holders or in any other that they have interest.
This type of credit is allowed for people who have fixed guaranteed income , even if they are not.
Therefore, the release of the credit is not subject to consultation with the SPC or Serasa .
Discount on the paycheck
When contracting the payroll deductible credit card, the client authorizes the bank to deduct from the current account the debts related to the monthly expenses , in the absence of payment of the invoice.
Thus, the minimum monthly installment is deducted from the cardholder’s salary, retirement or INSS pension. This amount can not exceed 5% of net monthly income.
Example: if a Retiree earns $ 2,500 in retirement, he can commit up to $ 125 every month with the payment of expenses of this type of card.
Minimum amount discounted monthly
If you prefer, the consumer can choose to pay the billet of the monthly invoice in its full amount, until the due date. Thus, it will also release more credit limit for new purchases or withdrawals.
If the amount spent in the month is greater than the assignable limit (as quoted in the example above R $ 125), the surplus balance is added to the total of the next invoice .
Interest rate value
The minimum amount is automatically deposited by the banks on the due date of the invoice. This also ensures that the amount borrowed will be received. Thus, it is possible to reduce the chances of default.
In this way, financial institutions can offer consumers as benefit interest rates cheaper than conventional rates for other types of credit .
Currently, the nominal interest rate of the consigned card is 3% per month. While the conventional credit card can reach more than 15% a month.
Exclusive assignable margin
Retirees, Pensioners and Public Servants, Private Enterprise Workers and Armed Forces Military Personnel can commit up to 35% of their net monthly income with loans .
Of this amount, 5% is exclusively destined to use with the consigned credit card expenses.
Thus, in case of necessity or urgency, and if the consignable margin of 30% has already been used, the consumer may use the exclusive consignable margin for withdrawals or purchases parceled out on the carton.
If the margin of 30% is available the uses can be combined.
Read also : Loan and Credit Card Consigned at the same time
Limit for withdrawals
The payroll deductible credit card also allows, in some cases, the withdrawal of up to 90% of the limit credit .
Generally, this amount is calculated based on the multiple of disposable income, but may vary according to the credit policy of each bank.
The amount withdrawn can be used in the way the consumer wants.
But that’s not all yet. Know the 5 main differences between paycheck card and conventional credit card.
5 differences between the Payroll Credit Card and other credit cards
In addition to the advantages mentioned above, know the 5 main advantages between paycheck credit card and other credit cards.
1 – No annual fee
Unlike other types of credit cards, in the case of paycheck credit card there is no annual fee or maintenance fee.
With this exemption, you can save up to R $ 300 in fees annually.
2 – No risk of having the name in Serasa
As the minimum amounts are automatically deducted every month from the paycheck, there is no risk of the consumer making no payment.
The conventional card, if not paid on time, may fall in the revolving credit, which tends to increase the value of the original debt, up to four times more.
And with that, if the debt is not paid, it can still lead to delinquency and adhesion to the SPC or Serasa.
3 – No penalty for late payment
As the minimum payment is made on the due date, there is no incidence of fine or interest. Unlike the conventional card that charges in case of late payment.
So even if the consumer does not pay the bill, you do not have to worry about forgetting to pay the bill.
4 – Card with international flag
Many banks already issue consigned credit card with international flag, which is accepted in several establishments. In addition, it is also possible to participate in loyalty programs.
5 – Installments and longer payment periods
Consignment credit card purchases can be made up to 72 times.
Payment can take place within 45 days after purchase. Unlike the conventional card, in which generally, there is no shortage for payment.
When is the Consigned Credit Card worth it?
The paycheck-deductible credit card is worth being used in any situation where it is necessary to use any other type of credit.
Just make a comparison between rates and benefits, to find out the advantages. This is because, as many finance experts say, payroll deductible loans reduce the chance of borrowing .
It is important to emphasize, however, that like any credit or financing, it should be used conscientiously. In the end, this is a long-term debt.
Therefore, if properly used, with the consigned credit card, the consumer can perform all the operations he needs, paying lower interest, zero annuity and still have access to the exclusive benefits of this modality .
How to apply for your Payroll Credit Card online
To make the online claim or simulation of the payroll deductible credit card , you must have CPF, RG, proof of address and proof of income in hand.
Federal Public Servants (SIAPE) must issue the consignee authorization through SIGEPE .
With this basic information, banks can now check the disposable margin available and approve the paycheck-deductible credit card.
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