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Payroll credit, ask for it or accept it only if necessary

The payroll credit is a loan offered by a bank or a financial institution, the fulfillment of the payments are guaranteed in the salary you receive, in fact they make discounts from your salary. This credit differs from personal credit in that you must have a payroll account and discounts or charges are made directly from deposits in your account.

The Condusef suggests that these credits are used responsibly, otherwise they can become a serious problem. So, before requesting it, consider the following: Is the expense you make with what they lend you urgent or can it wait? How much is it going to cost? Can you pay it?

Before getting a payroll loan, make sure that you can cover the partial payments. Photo: Pixabay.

You need to think about whether you need what you would buy with credit, and if it is the right time to request it. If the expense is not so necessary or urgent, you can continue saving and postpone the loan application, this will benefit you a lot since you could reduce the amount of what you request.

As for you to evaluate what it will cost you, it is necessary that you compare the Total Annual Cost (CAT), because the higher the CAT, the more expensive your credit will be. The CAT is a percentage that incorporates most of the costs and expenses that a credit includes. When you make the comparison between what the different financial institutions offer, make sure that it refers to payroll credit and that the number of payments is the same.

It also verifies the total amount you will pay, so that you have one more point of reference in your comparison and so that you can determine whether or not it is worth acquiring the credit. That figure will include costs, fees and commissions.

Check the commissions you will pay, read the entire contract and solve your doubts.

Before contracting the loan make sure that you can cover the monthly payments or fortnightly payments, then calculate precisely what you need for your expenses and determine if you can have the money to cover the partial payments of the credit.

The first thing you should ensure is that it does not affect your basic expenses.

There is a myth that you can only acquire a payroll loan at the bank that handles your payroll, where they deposit your salary. Condusef points out that there is currently a resource for you to get the payroll credit with the bank you want. This is called payroll portability, and it is a right that you have to request your bank to transfer the money from your credit payments to the bank of your choice.

When you request a payroll credit from the bank that handles it, they respond very quickly because they have your information, even the bank can offer it to you and have it pre-approved, so you can receive the credit in less than 72 hours.

When you obtain a payroll loan, you must pay the interest plus a commission for the opening, life insurance and unemployment insurance. Even if payroll loans have a competitive interest rate, the additional costs can make it more expensive.

More information in our Credits Section.