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What is Payroll Credit Card?

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?

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?

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

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

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.

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Credit Card: What It Is, How To Get It And Everything You Need To Know.

It is important to make it clear that credit cards are not an extra source of income, but the possibility of short, medium and long term credit execution. These credits should be used with planning so that there are no delays with the lender. The delays generated and default in Brazil show the lack of planning in the use of credit cards. If you still don’t know if it’s the right way to go, first understand the difference between Debit vs. Credit cards.

How to get a card?

In the market, there are many card options but most of them require a bank account. After all, they prefer to create a more lasting relationship with the customer, by registering the current account. Existing alternatives, however, can be quite advantageous.

However, it is common for the user to have to meet some stricter requirements. This way, the bank or financier needs to make sure that the consumer will bear their bills. This would be easier with the link, as the card company could block account values, for example.

Thus, it is critical that the user has their name cleared. That is, he has no arrears with any lender. Secondly, the card operator will request proof of a minimum income. The credit limit will be set based on this individual’s monthly earnings.

By contracting the card, you can perform all common device transactions. This includes, for example, payment for cash or installment purchases, payment of bills, access to functions over the internet, and more. Since the agency already has your bank details, you will not have to submit many documents and credit analysis takes place in a much shorter time.

When you apply for a card, you can contact your card operator over the phone, over the internet, or even in person. Normally, the proposal will be evaluated and approved or not by the company.

Credit card without bank account?

If you do not already have a checking account, you will need to present documents such as ID, CPF, proof of income and proof of address. The process may take a little longer as the bank will do a credit analysis and may release a lower limit. Here are two of the most commonly used card operators that do not require you to have an open checking account.

Ligio

Ligio is a card offered by Bradesco bank. To obtain it, however, the consumer does not need to have a bank account. Anyone who wants to request it just needs to use the Ligio app, available on the Play Store or Apple Store on mobile devices. You will then be asked for a quick registration and the card will be automatically created. The flag of the device is Visa, and use of the feature does not require the payment of any fee, not even annuity.

Yebank

Yebank was a company created exactly to offer a non-bank card. The card has no annuity, and allows the user to access all their financial information in the app. Incidentally, as in the previous option.

Today, Yebank also offers the so-called YeConta, the company’s bank account. Anyone who wants to can request both services, but there is no guarantee that both will be approved.

In addition, the user can lock the card at any time, increasing control of their finances and unlocking it when needed. The flagship of the device is Mastercard, and Yebank makes an assessment of each customer, whether or not available the card.

Super Account and Access

The Account Over Access can also be considered credit cards, but they are prepaid cards. That is, the consumer recharges them and can use them until the money deposited runs out. Both have a Mastercard banner, and a service plan is required to use them. The Super Account is managed by Bankate, and the Access by Mastercard.

Who can have a card

Who can have a card

The conditions required to have a card are not complex, but must be taken into consideration. In addition, it is important to note that all requirements must be met.

  • Being over 18: or being between 16 and 18, but being emancipated – the emancipated gets the same rights as an adult;
  • Proving income: If you have no source of income, it will be more difficult to get the card because the cardholder understands that you are less likely to pay your bills;
  • Keep a clean name: Banks consult their CPF before approving the card issuance.

Credit card, know how to use

Credit card, know how to use

It is a tool you use to buy today and pay another day. The merchant who made the sale will also receive it at a future date, minus a commission. The credit card acts as an intermediary between the customer and the seller, so it charges a commission from the customer in addition to fees for services rendered, which are usually charged to the cardholder.

All purchases you make must be paid at a future date. Even if you do not pay the invoice on time or pay only a portion of the total amount due, the establishment will receive the full amount minus the commission. We may also call it a debt centralizer: all your purchases must be paid on a single date.

It’s called plastic money. It works as a kind of credit line that is offered through a card (which can also be virtual) for purchases of goods and services in Brazil and abroad. Purchases can be made in physical or virtual stores – on websites or mobile apps.

Store cards often offer installment payments for purchases made with this form of payment. The installment payment varies from store to store, and may be without interest (or with interest already embedded) or with interest charges – provided they are properly informed before purchase.

They can be national or international. Issued to individuals or legal entities and generally offer the possibility of issuing additional cards to family members or persons designated by the holder in the case of an individual or to employees in the case of a legal entity. But always know the differences between the types of cards.

For the legal entity, the most common is the so-called corporate card that is usually used by managers and executives to attend business events (lunches, meetings) and to pay travel expenses.

Flag exchange but still want to be co-branded?

Flag exchange but still want to be co-branded?

Let’s explain the technical terms used so you don’t need a translator to understand the contract or what that sweet voice on the other end of the line is trying to explain to you.

Credit Card Administrators

These are service providers, not financial companies, that mediate between carriers, establishments, brands and financial institutions.

Carrier

Natural or legal person using the card.

Flag

Institution that authorizes the issuer to generate cards with its brand and that makes establishments available to the holder for their use. Ex. Visa, Mastercard

Issuer

It is the administrator, linked to a financial institution, authorized by a flag to issue cards with its name or third parties.

Acquire

It is the administrator who can affiliate merchants with the credit card system of the flag with which it is associated. Its function is to manage, pay and provide technical support to affiliated merchants.

Establishment

Store or service provider that accepts credit cards from a particular brand.

Financial institution

These are the banks authorized by the flag to issue the card.

Annuity

Fee that the cardholder charges the cardholder to associate with the credit card system.

Commission

Amount paid by the establishment to the institution that affiliated it. It is usually a percentage deducted from the value of the sale of the good or service and may vary by company size (micro, small, medium, large), average sales value, business risk, company age, time the company is a client of the bank and the administrator among others.

Guarantee Remuneration

Revenue that the cardholder charges from the cardholder when purchases are funded.

Administration fees among others

Any monthly fee charged to the holder when using a loan. Delayed the invoice, now what?

Affinity card

Credit card that displays the logo or brand of a club, association, NGO, or nonprofit that receives a percentage of the total sales made with the card.

Co-branded

They are similar to affinity cards, but issued by companies recognized in the market. They are usually issued by automakers, large retail chains, airlines and travel agencies and offer some discount or advantage with the accumulation of miles or points in reward programs.

What You Need to Know Before You Make a Credit Card

What You Need to Know Before You Make a Credit Card

In order to enjoy all of the above benefits to the best of your ability, it is important that when making the card you choose calmly and carefully, as this is a commitment made to the bank and must be managed conscientiously.

There are a few tips you need to know before making a card:

Bank choice

You can either choose to buy a credit card from the bank you already have an account on, or one you don’t have. To make the best choice, look at annuity, interest, and service package values ​​and choose the one that best fits your needs, with or without a chip.

Keep in mind that it will be easier to get the card at your current bank, as they have your financial history, making credit analysis easier. You can also get better deals if you pay your bills on time.

Threshold Value

Every credit card has a limit, which is the maximum amount you can spend on purchases. The determination of the limit depends mainly on two factors:

  • Credit analysis that the bank makes at the time of card acquisition. So if you are up to date with the institution, you might get a better limit, as they understand that you are a good payer;
  • Your monthly income: Basically, the more you earn per month, the higher your limit will be. However, some cards have pre-approved limits, so it is important to compare.

Interest rate

If, for any reason, you cannot pay the invoice or its minimum amount, you will have a higher debt the following month, as you will be charged not only for that month’s invoice, but also for the unpaid month’s invoice and the amount of interest for each month. day determined by that bank. There is the advantage of credit card withdrawals, but also be aware of the interest rate that may be charged when withdrawing.

This is one of the determining factors in choosing the card. Compare between various banks and choose the one with the lowest interest rate.

Annuity

The annuity is a fee that banks include for their services and is charged once a year, and the customer must pay it if they wish to remain tied to the institution. Despite being paid only once a year, it is important to choose carefully, as it usually takes a long time to choose your bank and credit card.

There are banks that charge the annuity only after the first year of card use. So again, it’s worth comparing.

Benefits

In general, every card offers advantages for those who use it, as we mentioned earlier. For example, you can earn points to redeem for products or services. When choosing yours, ask what the benefits are and how to use them. There are also benefits if you have a premium line credit card.

International Purchasing

There is an option to choose a card that can also be used for international purchases. This modality is usually worth it only for those who will actually use it, since it has more expensive rates.

We hope you enjoyed the content! Feel free to share your experiences or just leave a comment. Take the time to ask questions and suggest new guidelines and be sure to check out the other blog articles with tips for financial organization.

Credit Card: Reduce Debts

Credit Card: Reduce Debts

High interest and runaway: a perfect match for debt

Research indicates that about 40% of Brazil’s adult population is in debt.

Guess what is the main form of debt? Who said credit card got it right. Every time the bearer does not pay the bill on time is actually using a form of financing. As the card is a kind of credit line, when the bill is not paid on time or the full amount is not paid, the cardholder is financing a debt with the administrator. But if you are charged improperly, don’t worry, just contact your bank or financier and your problem will be clarified.

The invoice for payment contains the total amount to be paid and the minimum amount, which in turn corresponds to a percentage of the total invoice. Every time, instead of paying the full amount of the invoice, the minimum amount or any other amount between the minimum and the total amount of the invoice is paid, the holder is using the so-called revolving credit. The balance due will incur interest considering the next due date. And if you want to cancel your card even with debt, here is what you can do.

Since the interest rate of the revolving is among the highest in the market – it can reach more than 400% per year – creates the snowball effect, in which the debt increases substantially and goes out of control. In an attempt to curb misuse of the rotary, the Centobank has determined that the minimum amount can only be used once. If it does not repay the total debt, in the second month the bank should offer a lower rate financing line so that the customer has the possibility to repay the debt.

Rules? Understand

In 2017, there were changes in the use of revolving credit and other important points, check out the main changes below:

  • The card bill now comes with two values: the total, with the full amount of spending and the minimum amount, now fixed at 15% of the total;
  • Limit of one month for revolving credit.

In short, unlike in the past, the minimum payment went on to the next bill plus interest, which is called revolving credit, but that is now over. The new rules were approved to combat the default of Brazilian consumers and lower average interest rates.

Thus, failing to pay the revolving credit the following month, the debt must be in installments, and there may be negotiation of debts with your bank or financial.

Advantages Of Having A Credit Card

Advantages Of Having A Credit Card

Credit Access

The main advantage of credit cards is the fact that you can make purchases and only pay them later, on the invoice closing date. With this you can buy even if you have no money at the moment. Besides the advantage that you can make withdrawals without having to change cards.

  • If you are a business owner or have a card for your business, please be aware that you can receive payments directly to your credit card.

Installment

You can parcel out the value of purchases and thus purchase higher value goods that would not be possible to buy in cash.

Safety

The card makes it unnecessary for you to carry large amounts of cash, so it is a much safer option.

In case of problems with card purchases, it is much easier to get help from the bank and even money back, as all transactions are tracked and archived in your register.

Benefits / Loyalty Programs

With the use of the card, you can participate in programs to get benefits. There are a variety of benefit programs where you get discounts as you use the card and you can use them to redeem for products, services, or miles.

With this, the customer can really enjoy several advantages while making their purchases with the card. You can earn points from buying the month at the market to paying for coffee at the bakery and, for that, exchange for travel or movies, for example.

Easy online shopping

With the credit card, you make the purchase online and pay immediately, having the payment approved in seconds. With this, you do not need to go to a lottery or bank (as with slips) and the deadline starts from the day of purchase. In addition, if your purchase is unsuccessful or necessary, you can still request a refund of the value back to your card.

Explore all options before using or canceling your credit card

Explore all options before using or canceling your credit card

When there is a need or simply a desire to buy a product or service, look at the alternatives to buy it as cheaply as possible. It is usually to make the purchase with cash payment, because in addition to being debt free, you can get a discount on making this purchase. Buying with a cash credit card will not give you discounts, but it has its advantages. Is it worth having more than one credit card?

The main advantage is that you will repay that debt within the stipulated time. Another advantage is being interest free that are charged with the installment payment on the card. If there is no other alternative and you need to buy with your credit card, research all offers and promotions for this product available at that time before you pass the card to the first store. Always have your card in your favor.