Before borrowing money, it is necessary to understand what type of credit is the one that suits your needs. There are many in the market and one of the most striking and ends up convincing several Colombians is the free loan. Why? What makes it so attractive? How does it work? Suits me? Today we will answer all those questions so that you can decide if that is the type of credit you need to request and thus meet the goal that you have proposed.
How does it work?
The payroll credit works as a form of contract, in which the applicant gives his employer permission to deduct from his salary the monthly installments agreed with the financial institution, among them the most common, banks.
So, basically you request a credit and instead of making the monthly payment at the bank or through an application on your cell phone, this will be debited from your salary.
Why should you apply for a payroll loan? Is it convenient or not?
This type of credit has different advantages that are worth analyzing before deciding on an alternative. And it is not for nothing that it has become one of the most requested in the Colombian market.
- First, perhaps most importantly, it offers lower interest rates, which means it is cheaper. Why? This credit has a lower risk of users falling into default since payment is made automatically, without the customer even having the option of using the money for something else. As the risks are lower, the interest charged also falls.
- Second, the application process is also more streamlined because a guarantor, guarantor, or co-signer is not required; that is to say, no additional guarantees are needed since the commitment of the debit or discount that will be made of the payroll is enough.
- Third, they are ideal for strengthening your credit history. Because the risk of default is very low, by meeting payments correctly you are helping to create a good financial record or continue to strengthen it. In the future, when you want to apply for a larger credit such as a car or a home loan, you will have no greater problems obtaining it, as you previously demonstrated that you are a good client.
- Fourth, you do not necessarily have to apply for credit at the same financial institution where you receive your salary . The user can choose and compare among the available alternatives until finding the most convenient option. Of course, to do this it is important to take into account all the factors already mentioned.
- Fifth, even if you change jobs, continuity of the payroll credit is allowed. Sixth, this credit can be requested both if the client is an employee or a pensioner. In any case, the essential thing is that there is a registered monthly income.
- Lastly, the payroll credit also represents a time savings. You do not even have to worry about remembering the payment date, making the payment online or even going personally to the financial institution. By signing the “contract”, payments are made automatically month after month.
Some points to consider
As with any financial instrument, there are a few points that can be considered to put it to good use. For example, it is advisable to apply for the credit when you have a certain seniority or a contract in between, since this will give you the peace of mind of knowing that you will continue with the job and will be able to pay the credit.
On the other hand, the credit will be approved only if the applicant does not receive less than 50% of the net salary, once the corresponding law discounts have been made. If the percentage is less, it will not take place.
Some people seek to apply for multiple payroll credits at the same time or request too high an amount, causing the amount they receive once all debts have been paid to be minimal, and not enough to cover their obligations. Be very careful when applying for one of these credits and choose well the amount you are willing to pay, since this will be automatically debited and there will be no going back until the credit is completely canceled.