Payroll loans are a type of personal credit that can greatly facilitate access to loans. Because it is based on the possibility of requesting a loan with a lower risk of default, with payment of installments directly from your payroll. But did you know that there are some risks of the payroll loan?

So, just a good research, comparison and a very complete financial planning of your personal finances. Because we don't want the new loan to cause a headache, do we?

Payroll credit, as we said, is a type of personal loan that offers lower interest rates and better terms to pay off your debt. 

But this is only possible for those who are federal, state or municipal civil servants, retired and beneficiaries of the INSS, or who work in a private company that has an agreement of this type with a bank or finance company.

So if you're interested, don't worry! Just stay with us and check out in our exclusive article everything you need to know about the risks of taking out a payroll loan, in addition to understanding ways to avoid them.

So let's go?

When taking out a payroll loan, the customer will have the value of the loan portion deducted directly from their payroll, or from the benefit received by the INSS. In this way, the bank has a much greater guarantee of payment and faces much lower risk of default by the customer.

Therefore, with lower risks, the bank or finance company will be able to offer the customer a contract with much more advantageous loan conditions! For example, interest rates drop and the term for paying off the total debt will be much longer than with other types of personal loans.

However, it may happen that a customer is having difficulties in continuing to pay off his payroll loan with that specific bank or finance company. Thus, there are some risks of the payroll loan that we must take into account.

So, how about checking out what 5 of these risks are below? 

There is an ideal maximum percentage for you to be able to apply for a payroll loan in relation to the total amount of your monthly income. Thus, it is only possible to receive a loan that does not commit more than 35% of your net monthly income.

So, even if there is this limit, it is important not to risk compromising your monthly income so much. Because you run the risk of receiving a much smaller amount for your household budget, which can harm you a lot.

In short, evaluate your income well before making any hiring. In addition, always keep in mind the risks of the payroll loan when compromising your monthly income so much, okay?

When taking out a payroll loan, the customer will have the value of the loan portion deducted directly from their payroll, or from the benefit received by the INSS. 

In this way, the bank has a much greater guarantee of payment and faces much lower risks of default by the customer.

Therefore, with lower risks, the bank or finance company will be able to offer the customer a contract with much more advantageous loan conditions! For example, interest rates drop and the term for paying off the total debt will be much longer than with other types of personal loans.

However, this may be one of the risks of the payroll loan. Because it may happen that a customer is having difficulties continuing to pay off his payroll loan with that specific bank or financial institution.

Because, unlike financing, the payroll loan has fixed interest rates. That is, the total debt amount does not increase over time. 

So, pay attention to payroll loan contracts that place debtor balance amounts increasing over time, and a final amount higher than the credit you applied for. Because this is another one of the risks of the payroll loan.

So, read all the conditions of a contract well before signing anything, and protect yourself from this kind of deception!

Because there is the “consignable margin”. That is, anyone applying for a payable loan has a maximum monthly limit that all installments of their credits can have. Currently, that margin is 35%. 

Thus, one of the risks of the payroll loan is that you run out of this margin and thus not be able to carry out any new credit operations. 

Because there are many malicious people out there, waiting for any opportunity to apply blows to those who are vulnerable in need of a loan. That is, the scams are one more among the risks of the payroll loan.

So, to prevent this type of situation, keep the following tips in mind:

So, did you just see how many are the risks of the payroll loan? So, how about learning now how to avoid these situations and thus escape a lot of headache when applying for a loan?

So keep reading and check out our tips below!

There are many ways to avoid all these payroll loan risks. Plus, they're surprisingly simple! So, just a little more care and some changes in attitude before, during and after applying for the payroll loan.

So, why not continue with us and check out our tips to avoid further problems with your payroll loan? Come on, it's very simple!

Because it may seem obvious, but many people do not correctly check the credibility of the creditor financial institution before applying for a payroll loan. Thus, they end up falling into blows!

So, before anything else, take the following steps:

Thus, it will be more difficult for you to make a mistake and end up falling into scams, or taking out a payroll loan with poor conditions. Furthermore, you do not run the risk of defaulting and not receiving the credit you requested, just having your personal data stolen.

Very important when it comes to any financial product or service: always do a lot of research and run simulations before hiring! That is, enter the digital platforms of the different financial institutions and simulate the payroll loan you want online.

Furthermore, there are platforms specialized in comparing different loans and conditions. This makes it much easier to understand which is the best credit and rate conditions for you.

So, the probability of falling into one of the payroll loan scam risks will be much smaller! In short, only through simulations and comparisons will you be sure you are getting the best conditions in the loan agreement.

So, never stop researching and simulating a lot before hiring!

Payroll loan risks may even be lower than in other types of personal credit. Meanwhile, you need to do good financial planning in the same way.

So, organize yourself before requesting any type of consignment on your behalf. Because you need to consider your family budget, how much will be deducted from your monthly income, and whether your essential expenses will not run out of funds to pay.

So, carry out good financial planning and ask for a risk-conscious payroll loan, with greater control of your payment capacity.

Now, keep the payroll loan risks in mind before applying for yours!

So, always remember that payroll can be one of the safest loans among the different types of personal credit. However, it is not risk free. And as we show, there are some risks and very simple ways to avoid these headaches!

So, be very careful before, during and after applying for your credit, and be free of all the risks of the payroll loan!

This brings us to the end of our exclusive article on payroll and its possible risks. In addition, now you know which are the small attitudes that can make all the difference during the research and application process for your payroll loan.

Now it's time to write everything down and ask for your credit safely! So, we hope that now it is easier and simpler to get payroll loans in a practical and safe way. Until later!