Review the option of a payroll loan that helps stabilize your financial situation. Discover the advantages of taking out this loan in this article.
Payroll loans are financial loans that are granted based on salary to employees who receive their salary in a checking account. Loan payments are made through automatic transfer of the amount and frequency agreed with the employee, that is, the amount is subtracted monthly or biweekly.
This financing scheme, in addition to being very convenient and easy for customers to obtain, is very useful for getting out of an economic problem if used correctly, becoming a powerful ally for workers who seek answers quickly.
Advantages of opting for a payroll loan
The vast majority of financial products aim to meet certain needs of their customers, however, none adapt as well to the needs of workers in general as payroll loans.
It is common for financial health recommendations to be directed towards choosing products that adapt to individual needs, but the advantage of the payroll loan option is that it is unlikely to exceed some of the basic requirements that are requested in other financing modalities.
One of the main financial advantages is that, due to the nature and circumstances in which these types of loans are offered, it is possible to have a fixed interest rate, which makes it easier to design a repayment scheme that includes fixed installments.
If the correct analysis is carried out, the worker can complete the payment of a payroll loan within a specific period, without having to worry about delays or unexpected changes.
Extra guarantees that work in favor of users
Although it may seem that the authorization is guaranteed, the bank, when consulting your credit data at the credit agency, may grant you a credit according to your capacity.
To make the most of this type of loan, the golden rule is that the total amount to be paid does not exceed 30% of your monthly disposable income. If you have other obligations, the ideal is not to exceed 10%, to avoid the risk of over-indebtedness.
It is recommended that before requesting it, the client calculates his/her monthly income and subtracts fixed expenses, but also includes the payment of other debts that he/she may have. Then, also include in the calculation a small amount that serves as a safety margin for unforeseen events.
With this, the client can have a more precise and clear net calculation of what percentage of extra debt they may have so that, when requesting the payroll loan, it is very clear how much money they can allocate for payment.
Another clear advantage of these products is that the number of requirements is minimal:
- The bank does not ask for any type of guarantee or bail, as pawnshops usually do, as the payment is covered by the worker's salary;
- Loan amounts depend on the employee's length of service and salary;
- Fixed terms can vary from 6 to 72 months;
- Deductions from the employee's payroll are generally made every two weeks, however, they can be adjusted to the frequency agreed with the bank according to the cycle in which the salary is received;
- In many cases, the applicant is already pre-authorized because the bank has the information.
For many people who do not have a credit history, this type of loan is a very good option to generate one. In addition, this type of financing is a powerful tool that workers should be able to access in case of an unforeseen event or emergency. In these cases, once you have gotten out of trouble, the best advice is to pay everything off immediately. Doing so before the end of the term is much better.