The current market provides alternatives for those seeking sustainable growth and debt relief. Individuals can resort to these multiple solutions. However, knowing the variety of lines of credit to pay off debts is not easy. How to choose the most advantageous and suitable for your profile? Futher reading at joseinobyoki.com
Getting borrowed money today is almost instantaneous because of online and secure systems. However, it is still necessary to understand the mechanisms used by the companies to release a certain line of credit.
There are countless fears about credit lines as interest rates are extremely high. With this, it becomes difficult for the cooperative to seek a viable exit. Large institutions like ordinary banks seek the best for themselves , which can undermine the formation of a solid partnership.
In this article, we will discuss how to apply for this financial aid , the main lines of credit currently available in the Brazilian market and how to choose a cooperative reference. So if you want to improve management in relation to personal finances , read on and find out how you can simplify your life in just a few steps !
How to use credit lines to clear debts?
In Brazil, in order to obtain a credit line, it is necessary to have recourse to an authorized institution – it can be a bank, financial or cooperative – each with its specific advantages .
This loan is granted by banks and financial institutions, where a credit analysis is done. It is recommended to be unrestricted in agencies of analysis and information such as SE Credit, SSX Credit and ZZP.
Institutions usually request documents when granting credit to pay off debts, so it is important to have these personal vouchers in hand . Each company has its own process for analysis. Generally, they are:
birth or marriage certificate;
proof of income;
proof of address.
The high interest rates practiced today are seen as traps if not analyzed with great caution. The Central Bank of Brazil practices a base rate, but each enterprise adds its administrative burden with support in the risk of default.
A common practice among credit line providers is to analyze the customer’s score . This important tool aims to provide institutions with relevant information about the cooperative before the concession and closing of the business.
With the digital world becoming more and more present in the personal life, some companies have adopted other methods to analyze the score. The analyzes can be obtained by social networks in order to clarify if the individual is a good payer. All this with the purpose of analyzing each specificity in order to be able to sign a contract.
What are the credit lines to remove existing debts?
Amidst so many sources of financial funding available in the market , it becomes difficult to understand how to hire credit and the best options for the ideal profile of each individual. That is why it is important to know each one in detail . Find out which ones are currently available in the market!
Loan with guarantee
It is the mode of credit that offers the best interest rate and long term to take it off. The cooperative provides a good to the institution as collateral in case of default to contract the loan .
The guarantor can be real estate, vehicles, salaries and even jewelry. This category is one of the oldest modes of lending working capital and flexible to honor with payment.
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In this loan, the installments are deducted directly from the payroll or from retirement and the capital is available directly in the checking account. The institution defines the installments, interest rates and value .
Although it compromises the salary, this option prevents the loan from being taken out , consequently, this brings interest rates around 1.5% per month. It was pointed out by the Brazilian Institute of Consumer Defense (Idec) as one of the best concession options, because, even with the name compromised, an analysis is possible to release the credit.
Known for simplicity and speed , it is the easiest mode of capital lending. It is made by means of bank slip, automatic debit or pre-dated check, being possible to choose the best date for expiration .
It can be requested by any person , even negatives, just a proof of income. The interest can be between 1% and 15% per month, varying in the case of the value and term for payment of installments.
Loan with anticipation of the thirteenth salary
With an average rate that revolves around 3% per month, it can be a viable alternative . This type of credit granting to individuals makes the discount of interest and charges when the receipt of the thirteenth salary occurs.
A prudent initiative to take into consideration before resorting to this line of credit is to have financial planning. After all, this ensures that there are no essential resource cuts, which may be needed throughout the year.
Intended for formal or informal microentrepreneurs with annual gross revenues of up to R $ 120 thousand, microcredit serves those who bitterly find it difficult to obtain credits. To obtain it is required not to have restrictions in organs like SE Credit, ZZP and SSX Credit.
Rates vary between 2% and 4% per month, well below the traditional lines available . It is not necessary to present a proof of income, however, as a guarantee to avoid defaults, a guarantor or property is requested as security.
How to choose the financial institution to repay debts?
Credit unions are presented as alternatives to the monopoly banks and allies of the cooperative to manage the personal administration . These institutions have as priority to promote the development of a specific sector of the economy with local emphasis and institutional sustainability.
In addition to financial products, insurance against damage and other types of loan are also available. The cooperative further assists in teaching how to manage the financial part through key management instructions.
Innovation and technology are the secret to the growth and freedom of the cooperative , so it is imperative to choose a cooperative that presents various means of payment, such as internet banking, bank collection and mobile application.
Lines of credit to pay off debts are diverse and flexible , with all sorts of profiles pursuing prosperity in development. All of these options have the mission of improving personal savings .
Now that you understand better about credit lines to clear debts , you can already contact us and find out how we can help you!