Consigned credit card: what it is and how it works
You certainly have or have had a credit card, right? That's because we are increasingly interested in payment facilities and advantages that cards offer, such as longer payment terms and the possibility of installments. But what about the payroll credit card? Have you heard of it?
This is a type of card intended for those who have a fixed salary or benefit. The payroll credit card is also recommended for those with a bad credit history, since the chances of credit approval are greater in this case.
If you are curious to know how the payroll credit card works, stay with us.
What is a payroll credit card?
It is like any other credit card, the difference is in the payment of the invoice. As it is a payroll loan, the discount is made directly from the paycheck or pay slip.
Therefore, the payroll credit card is intended for retirees, pensioners, civil servants, employees of private companies and members of the Armed Forces. It is an interesting option for those with a bad credit history because the institution responsible for the salary account is less at risk of default and, therefore, tends to offer more credit.
Although the invoice payment is made directly from the payroll, the entire amount due is not deducted. Only the minimum invoice amount is automatically debited.
How does it work?
As we said, only the minimum payment is deducted from your paycheck. The remaining amount of your bill must be paid normally via bank slip, sent by your institution. It is very important to be organized to make the full payment on time, just like with a regular card. Otherwise, you will end up using revolving credits, which have very high interest rates.
About the card limit, is the financial institution that defines, based on some criteria. The minimum invoice amount, for example, cannot be greater than 5% of your salary. Therefore, for someone with an income of R$2000, the minimum invoice amount cannot exceed R$100.
What are the advantages of a payroll credit card?
In general terms, this type of card is similar to the traditional one, but there are some advantages. One of them is the lower rates, especially the revolving credit rate… those who need to pay their bill in installments pay much lower interest.
Another advantage, which can also be a disadvantage, is the possibility of withdrawing credit. Yes, you can withdraw the money corresponding to your credit limit on the card. However, if you don't plan for payment, the debt will snowball.
An additional advantage is the exemption from the annual fee. This means that you will not pay a maintenance fee for the card. However, if your profile does not fit the payroll card, it is also possible to get a free annual fee from other institutions. Here are some options:
- The Santander SX Card, in addition to offering the option of a free annual fee, incorporates all the benefits of Visa Gold, provides discounts at partner establishments and has a pre-approved minimum limit of R$250 for all users and much more.
- Banco Inter Card, provides an international Multiple Mastercard with no annual fee;
- The Nubank Card, one of the most popular, continues to offer discounts on the bill through advance payments.
Did you enjoy learning about the payroll credit card? This option is attractive for those who have a salary account, as the payment is deducted directly from the paycheck, minimizing the risk of debt.
