Similar to the conventional credit card, payroll-deductible credit card avoids debt and has much lower interest rates. Similar to payroll loans, this new means of credit is possible with a business-bank partnership. As with the loan, the payroll-deductible credit card yields lower interest rates and generates less debt because of the payment guarantee.
Who Can Make a Payroll Credit Card?
In order to acquire the payroll credit card you must first have an agreement between the company you work for, or the entity that pays your benefit, and the bank you receive the payment from.
If this agreement already exists, simply request the card from your bank, it is through this agreement that the bank will have the security that the payment of the invoice will be deducted from your payroll.
Therefore, to apply for the payroll deductible credit card, you have to fall into one of the following categories:
- work with signed portfolio;
- be retired or pensioner of the INSS;
- be a municipal, state or federal civil servant;
- be military of the armed forces.
What are the differences between Conventional Credit Card and Payroll Credit Card?
Among the main differences, in payroll loans there is no annual fee, which can be exorbitant in some conventional credit cards.
The payroll credit limit is also much higher than that of the conventional card, since by law it is possible to commit up to 35% of salary with payroll, unlike conventional cards that usually have limits bordering on maximum 20% of income. Another positive point is that the customer is not required to be an account holder of the bank where he asked for credit, and may still be negatively named, because to make the payroll credit card you do not need to perform credit analysis.
But the main difference between payroll-deductible credit card and conventional credit card is in the interest rate and the payment term. The payroll card has a much lower cost for the bank’s guarantee of payment of the invoice, as the money deducts directly from the customer’s salary.
Payroll Credit Card Advantages
The main advantage is that the payroll card does not allow debt, one of the biggest problems caused by conventional cards. Invoice amount is discounted on a given date. It is also impossible to pay the minimum amount of the bill, as happens with conventional cards, which only generates higher interest.
No Annuity Charge and you can cash out up to 90% of your credit limit. To make the card is also not necessary to consult the SPC or SERASA.
The payroll card bill is the same as the conventional one, with a description of all purchases, with values, locations, dates, etc. And just like conventional cards, some payroll card banners also have point programs.
The payroll-deductible credit card has average interest of only 3% per month, usually the rate is not only lower than that of a payroll-deductible loan, but there are already some financial companies that work with interest rates below the loan.
Disadvantages of Payroll Credit Cards
It has higher interest rates than a payroll loan, so if you need cash on hand quickly, it is better to opt for the loan.
The invoice payment is automatically deducted from your account and you do not have the option to cancel the debit payment.
Some carriers charge card issuance fees to cardholders and potential dependents.
This type of credit is a good option. It is good for controlling monthly spending and suitable for those who are tired of the absurd charges of conventional credit cards.