What is a payroll credit?
Everyone at some time in our life has resorted to borrowing, either to finish the fortnight, buy something on sale or buy a home or a car. The reasons are many; however, only some forms of financing really help us get what we need without consequences for our pocket, such as payroll credit. Why?
This is nothing more than a simple, fixed amount credit , which can be obtained by an employee who receives his salary periodically through a deposit on his card or account where they deposit your salary, says the Saveline Bank . If in this way you receive your pay, you already meet one of the first requirements to obtain it.
Payroll vs. …
- Credit , departmental or self-service cards : It will not allow you to spend more, because the amount borrowed is based on your ability to pay . You will avoid interest and late fees or pay late, as the monthly , weekly or biweekly fee is automatically discounted.
- Personal credit : You will be calm for the days of payment , since the automatic discounts avoid the extraordinary costs and commissions for late deposit or non-payment. In addition, you are more likely to pass because your salary is the guarantee.
- Automotive financing: It can also help you get the money you need to renew your vehicle, in addition to the automatic discounts to pay for it will avoid extraordinary interest.
Payroll credit is a favorite of Mexicans, as its granting to millions of workers increased 2.6% between June 2017 and the same month, but in 2018, Saveline Bank said. In addition, it is one of the least delinquent reports, since its delinquency level was 3.0%, lower than that reported by the consumer finance sector as a whole (cards, personal financing, etc.)
Loan without Credit Bureau
The idea that the Credit Bureau is only a record for debtors still exists … and in part this is true, but in reality the information it has not only has to do with delinquents and is not always to harm users.
Those who have opened a bank account no matter what type, have applied for a loan or a mortgage , automotive, departmental card and even, hired mobile telephony and cable TV, are within this register.
This company generates a history that allows financial institutions (multiple banks or other credit and commercial institutions) in Mexico to know what type of financial products you have requested and if you have been a good payer. By this last one you obtain a qualification that many financial institutions consider to lend you. So if you are fulfilled and you pay on time you don’t have to worry, because for you it will be easier to access loans.
Be careful if any person or company promises to erase you from the Bureau because this is impossible. Better check your status in the Bureau , it’s free once a year. For more information click here.
The healthiest thing for your pocket is to have a good track record; However, this is not always possible for different reasons, from eventualities (accidents, unemployment , illnesses, etc.) to disorganization, bad habits and lack of education in the management of your finances.
However, it is not always essential to have a good credit history to borrow. Although most financial companies require it, some offer a vote of confidence to loan seekers even if they do not have a good rating.
Many times they do not ask for a guarantee or a good record, because your salary is a sufficient guarantee for them.
Who can apply for a payroll loan?
Most public and private sector employees can request a credit with automatic monthly , weekly or biweekly discount to the account where their salary is deposited.
However, state government workers, teachers, retirees and public sector pensioners are more likely to access these credit solutions, as solvency and timely salary are sufficient support to be subject to funding.
How to apply for a payroll loan?
If you already have all the information you need and are sure to request a credit with automatic discount to your card or payroll account, it is important that you consider that some institutions ask for certain requirements, such as being old in the workplace or other.
In the case of public sector workers the requirements are less, some of the most common are:
- The last two heels or payroll receipts
- Valid official ID
- Additional document (only if the institution or bank where your salary is deposited requires it, such as proof of address or months of employment)
The amounts lent you can go from three thousand to 300 thousand pesos, and processing the credit application can take 24 to 48 hours, so once approved you will be sure that it will be deposited as soon as possible directly into your account where You receive your pay.
Eventualities happen and many times we need resources to solve them. If you find yourself paying your payroll credit , but you need to borrow a little more, you can request a refinance.
Formally refinancing is the extension of a current credit line . That is, if you already have one with a bank or financial group , they lend you a little more for what you need.
The main condition to access refinancing is to be punctual in your payments. If so, it is practically approved and under conditions similar to those of your original financing: same term , interest rate , etc. Once approved the resources will be deposited in the account where you receive your salary.
In some cases, refinancing offers you new financing with the option of reducing interest rates (lower interest rates) and even increasing terms , etc., unlike asking for new loans, cards, going to a lender or any other type of financing.
This new amount will serve to finish paying what you owe from the first, and the rest to use it in whatever you need. In this way you can achieve savings and the rest of your goals, such as finishing paying another debt (reducing interest and costs ), starting a business plan or any other purpose.
What happens if I don’t pay a payroll credit?
Reasons for not paying loans are many, among which the eventualities stand out: dismissal or change of employment, retirement, death or any other; or, a disorganization and even willingness not to pay.
Initially, one of the first consequences is the accumulation of interest and commissions payable late or unpaid, which obviously will cost a lot to resolve. Therefore, it is best to try to pay on time.
However, if the reason for your non-payment is a change of employment you must notify the entity with whom you have the financing on the new bank account from where they can deduct the monthly , biweekly or weekly payment , to avoid delays.
If the default occurs due to death, accident resulting in disability and even unemployment , some institutions offer life insurance to pay off the debt or restructure the term of the loans. Everything will depend on the clauses of your contract. Sometimes the hiring of this type of insurance is mandatory.
Remember that a payroll credit should help you achieve your goals and consolidate your equity future, therefore, you will be a good payer as long as the payments from where you deposit your pay are automatically discounted.
Why use a payroll credit?
The loans have different uses, it all depends on the type of financial product you choose: a card , to acquire a car, start your business, etc., but also the way you manage your resources, because the population in Mexico still lags a long way. in the proper management of your personal finances.
Expenses of food, personal or service payments (40.9%), attending emergencies or unforeseen events (18.2%), buying, repairing, remodeling or expanding a house; buy land, vehicles, jewelry, animals, etc. (11.5%), health (18.8%), education (11.8%), pay vacations or parties (3.7%), start, expand or operate a business (6.2%) and pay a debt (4.9%), are the main reasons why we Mexicans resort to financing, according to the National Survey of Financial Inclusion (ENIF) 2018.
Here the recommendation is that you apply for your credit for that which you think will really be worthwhile and that will improve your quality of life . Think about it!
One of the most versatile loans that allows you to do all of the above, and even more, is the credit with automatic discount to the account where you deposit your salary , which also has the advantage of not indebting you more or else, delaying payments.
Remember that a loan of this type benefits you as long as you use it responsibly, only when you need it, and of course, that you have a fixed income to pay it off.