For you who need credit and want more freedom both at the time of hiring and at the time of payment, here’s everything you need to know about unsecured personal loan.
Have you gotten overdraft or had to pay high interest on the credit card rotary? Are you not comfortable placing your equity or car as collateral for a loan? Do you need a quick solution to help with your financial situation? If you have answered yes to any of these questions, unsecured personal credit can be a great solution for you.
What is unsecured personal loan?
Unsecured Personal Loan is an individual credit category that does not require you to place your assets (or your salary) in the purchase agreement as a way to secure payment. That is, you do not need to involve your car or your property in business as happens when you take out a secured loan.
More accessible than other types of credit
Unsecured personal credit is much more open to several consumer profiles. This is because:
- Unlike the home equity loan, the unsecured personal loan does not require you to have a property registered in your name to acquire the loan;
- Unlike when you take out a vehicle warranty loan, you will not need to include your car in the purchase agreement;
- To get your loan, you do not have to have a signed work permit or receive social security benefits. These are some of the requirements when hiring a payroll loan , for example.
Freedom to pay
Other loan categories have the payment of installments automatically deducted from your salary or benefit. This does not happen when you opt for unsecured personal loan. In addition, installments and maturity dates are generally more flexible and can be traded. In this way, you have at your disposal more autonomy to manage your money and to avoid that, in emergency situations, your savings are out of control. In the worst case scenario, you will not need to give your car or home to the bank if you can not repay the loan.
More competitive rates
If you’ve had a chance to check interest rates on special checks, you’ll know why they’re being criticized by many finance experts . This is because their value is much higher than the interest rates of other types of personal credit, including those of the unsecured personal loan. Overdraft interest rates are as much as 300% higher than what you would pay for an unsecured personal loan.
Faster hiring process
By now, you may have noticed that unsecured personal loan is practically a “free style” credit. Precisely for this reason, hiring becomes a much faster and easier process. You will only have to go through a credit analysis, without having to send documents like deeds, tuition and everything else. In addition, the process gets even faster when online loan services are available.
An exit to avoid default
In August 2017, an unprecedented survey of the Credit Protection Service (SPC Brasil) and the National Confederation of Shopkeepers (CNDL) was published on indicators of default in Brazil. The study found that approximately 60 million people are lagging behind their financial commitments in the country. This number represents almost 40% of all Brazilian consumers over 18 years of age.
Delinquency and the probable negative name can generate several disorders that are sometimes unknown to the consumer:
Once your name appears on the list of defaulters, any installment purchase, loans and financing may be refused. If it is not declined, you will likely pay much higher fees because of your default history.
If it was already difficult to get a job, not paying bills, can make it difficult to find. Companies can have access to the CPF of the candidates to investigate pending financial and other irregularities. And this can result in fewer options available for your professional growth.
For these and other reasons, it is advantageous to avoid delinquency as much as possible. The study “Defaulters in Brazil 2017: Profile and behavior towards debt” identified the main commitments in arrears between the defaulters and negatives interviewed:
All of the above commitments usually have higher interest rates than a personal loan. An unsecured personal loan may be a more convenient solution to get the lowest interest rate. So with a good strategy, you can prevent you from entering (or allowing you to leave) the list of defaulters.
Almost half of the respondents (47.7%) in the quoted research admits not being able to repay the debt in the next three months. Do not freak out. Make a plan to clear your overdue accounts. If possible, seek the help of an experienced professional to resolve the situation.
Tip: In case of any financial misfortune that makes it difficult for you to pay all bills, try to negotiate with your supplier and / or lender. You can achieve better conditions that can keep your name from getting dirty in the square.
Now that you already know more about payroll loans, look at these 5 tips to increase your chances of getting your personal loan approved . Do not forget: there are many other types of loans. Follow our publications and take advantage of what your savings can offer you.