The motivation to apply for a loan can come from several factors – from setting a higher investment, such as buying a car, to the emergence of an emergency such as medical treatment, for example. However, regardless of your goal of getting credit, you need to keep something in mind: choose the modality that offers the lowest interest rate possible.
More than 60 million people closed the year 2018 in debt. One of the main reasons for this is that most debt is linked to credit card and overdraft, which charge the most expensive rates in the market. Not to fall into this trap, you will find out following this article how to get credit with lower rates.
Loan to reduce debt
The popularity of credit card and overdraft is due to the practicality of these loan arrangements. But what comes easy ends up charging its price.
On credit cards, for example, many people forget the invoice deadline and only find out after they are paying exorbitant interest. As for the overdraft, the statement gives the impression that money is an extension of our salary, which makes one spend mercilessly and accumulate a debt that will be perpetuated for a long time.
The best alternatives
The secret, therefore, lies in analyzing which lines of credit are most advantageous. But what are they?
1. Payroll Loans
One of the alternatives with the lowest rates is private payroll loans. In this mode, debt installments are automatically deducted through the payroll discount, which gives financial institutions a greater guarantee that the debt will actually be paid. This is precisely why interest charges are lower.
However, not all people have access to payroll loans. This modality is offered to INSS pensioners and retirees, military members of the Armed Forces, civil servants and employees of private companies with a formal contract that have agreements with financial institutions to offer this modality.
2. Online Personal Loan
Online personal loan is another modality that is on the rise . In addition to low interest rates, it stands out for its practicality, as it is possible to apply for credit without leaving home.
Personal loan services offer lower rates because they do not bear some high costs of large agencies, such as physical structure, and require a smaller workforce.
The disadvantage is precisely the most rigorous credit analysis. That is, if your name is in defaulters list, you risk not having the loan approved. However, if credit is approved it is a great option to replace your credit card and overdraft debt, getting rid of the exorbitant interest.
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