Many people end up with a negative credit history and don't know how to apply for a loan. Read our article to the end and see how you can apply for a loan even if your name is on a negative credit list.
If you have a negative credit history and need a loan, there's a well-known alternative that you can apply for despite having a negative credit history: the payroll loan , one of the loans with the lowest interest rates on the market. Below, we'll explain everything about payroll loans .
What is a payroll loan?
A payroll loan is one of the best credit lines for people with a negative credit history who want to be able to apply for a loan.
But why is it so good? Because payroll loans are one of the credit lines with the lowest interest rates on the market and are very secure.
Interest rates on payroll loans tend to be lower than other types of loans because the guarantee of payment is quite high, since the loan payment is automatically debited directly from the client's salary.
For this reason, one of the requirements for your payroll loan to be approved is that you have some verifiable source of monthly income, whether from your job at a private company, a public company, or your retirement pension.
How can I apply for a payroll loan?
You will need to go to an agency with the necessary documents, and don't forget your proof of income.
After all this, the bank will analyze your request, and the client, along with the bank manager, will analyze and choose the loan amount based on your income and the repayment period.
Conduct thorough research before applying for a payroll loan
Regarding interest rates, they tend to be much lower than most other types of loans; however, each bank operates in its own way and with its own conditions.
That's why it's important that you check their rate table.
You need to keep in mind that when you apply for your payroll loan, banks will not approve an installment that exceeds 30% of the amount the worker receives.
For example, if you have a salary of R$1,800, your installment cannot exceed R$540.
Another very important thing is that the repayment period for your secured loan cannot exceed 72 months, which would be 6 years making monthly payments on your loan.