Given the current economic scenario, it is not surprising that an increasing number of people apply for the famous payday loan. Well known for its speed and ease, this type of credit is one of the most sought by those who want to pay off debts and clear the name in the square. However, it can also be used to pay taxes on time, buy appliances, take a trip, invest in studies, among other reasons.
Check Out 4 Truths About Payday loan
Now yes! Once you know some of the major personal credit rumors, it’s time to learn a little more about how it works and can help you organize your accounts.
1. Every payday loan depends on a credit analysis.
Do not confuse the practicality of payday loan with lack of discretion when releasing credit! Before the money falls into your account, the financial institution needs to calculate the risks of lending you money. This requires some documents, such as CPF, RG, proof of residence and proof of income.
Along with your credit score, this data is used in credit analysis to determine approval and, if so, what your interest rates will be. But do not worry! Especially for those with a clean name, the procedure is very quick and within minutes you get pre-approved offers.
2. Even those who are negative can get a loan
Contrary to popular belief, anyone with a dirty name can also be approved for a payday loan . In this case, credit analysis is usually a little more careful, taking into account factors such as already committed income, past debt repayment history, among others.
In addition to the response time being slightly longer for negative people, banks and financiers often work with higher interest rates. After all, in their assessment, the risk of default is also higher. Anyway, it is worth doing a simulation and see the options available. This is because, even in these situations, the interest rates on a payday loan still tend to be much lower than those on overdraft or revolving card interest.
3. No Guarantees Required in Contract
As said before, some loan arrangements, such as home or vehicle refinancing, work at very attractive rates. However, in order to apply, it is essential to have one or more of these assets settled in your name. In the payday loan , no. Just give your word and pass the credit review. Thus, it is a good option for renters who do not have or are still paying for a vehicle.
4. I can use the loan money to do anything I want
Another advantage of personal credit is that in order to hire you do not have to give any justification or right destination for using the money. Once released, the loan money can be used to repay debt to travel. However, before placing the order, it is worth thinking about how you plan to spend the money and ask for only the amount strictly necessary. After all, you will be paying interest for it.