Knowing the payday loan credit limit can help with decision making and even better financial planning.
Understand how to calculate this value and because knowing about it can make all the difference.
Just like a conventional credit card, there is also limit to the payroll deductible credit card . And to keep up with the card limit, it is fundamental to avoid debts and interest that do not stop growing.
The payday loan method was created and regulated by law precisely to prevent its users from accumulating huge debts. Therefore, the limit and the payment of the consigned card works differently from the ordinary card.
Learn how to calculate your payday loan limit. Also check out some tips to avoid getting into revolving credit.
How does the Consigned Credit Card work?
The consigned credit card can only be contracted by users who can prove fixed and guaranteed income.
This is the case of the beneficiaries of the INSS, Public Servants and Employees of private companies.
This card gets your name on account of the form of payment. The credit that the bank automatically allocates is called consignable. And this is how both the payroll loan and the credit card work.
Read also : How does the Consigned Credit Card work?
In the invoice of this card there is always the automatic payment, referring to the consignable margin . This margin represents 5% of the client’s net income.
That is, part of the invoice with the amount spent has always guaranteed payment. Then, the installment is deducted direct from the retirement, pension or salary of the cardholder. The surplus amount can be paid next month or via invoice .
Therefore, the interest rates charged on the payroll card are always lower than on a conventional card.
In the payroll, the fees are around 3.5% per month for INSS beneficiaries and, on average, 5% per month for Public Servants and CLT Employees.
The Total Effective Cost, or CET, of the credit card, however, can vary from bank to bank. This is because CET includes the collection of other tariffs.
So before applying for a card it is always interesting to compare which bank offers the best CET .
It is very easy to apply for a paycheck credit card! Simply present RG, CPF, proof of residence and proof of income updated. Public Servers must issue Consignee Authorization.
Also read : How to apply for a Payroll Credit Card online?
One more common question is about the boundaries of this card. Find out now how much you can spend.
What are the maximum credit limits?
The paycheck credit card is used to make purchases in installments and withdraw money in ATMs. The purchase and withdrawal limit is calculated based on the net value of the rent.
Thus, this value is calculated according to the salary or benefit that each user receives, so it can vary from case to case.
The monthly installment will depend on the amount spent and the deadline chosen for discharge.
On average, the credit limit is 25 to 27 times the value of the customer’s assignable margin. The exact values can be consulted directly with the consignee chosen to contract the card.
As for the withdrawal, this can reach 90% of the total limit of credit available, depending on the bank.
It should be remembered that the amount withdrawn will be charged in the same way, monthly. Thus, the higher the amount drawn, the greater the value of the monthly installment and the total debt.
The limit of 5% of the margin will be automatically discounted, however, the additional amount must be paid in parallel or will go to the revolving credit of the consigned credit card. Check out the detail below.
Margin of Payroll Credit Card
As stated, the assignable margin is the limit value that the customer has for expenditures with consignable credits, based on their net monthly income.
By law, only 30% of the income can be used for payroll loans. For the credit card is released 5% more. Thus, the total consignable margin is 35%.
If a Retiree receives a benefit of $ 1,000, you can spend up to $ 300 with the installments of the loan and $ 50 with the automatic discount on the credit card invoice.
The amount spent monthly in addition to these R $ 50.00 must be paid, by means of a bank slip, by the user. Like a conventional credit card bill.
The balance due, ie the difference between the total invoice and the automatically discounted amount is accumulated and is included in the invoice for the following months.
Although the payroll deductible credit card interest rates are lower, you need to remember that, anyway it is a money that is being spent the most.
Read also : 7 Tips for Not Borrowing with the Consigned Credit Card
Find out now the paycheck credit card limit for the covenants served.
INSS Approved Credit Card Limit
Every Retiree or Pensioner of the INSS is entitled to a payroll deductible credit card, as long as they have available assignable margins and have never contracted a payroll deductible credit card .
This card can only be requested in the State in which the beneficiary receives. It is also a rule that the financial institution is agreed to the Social Security.
The beneficiaries of the INSS have an average credit limit of up to 25 times the total amount of the assignable margin of the card.
Using the example above, a customer with a $ 50 margin can spend up to $ 1,250.
SIAPE Consigned Credit Card Limit
The SIAPE paycheck credit card is intended for those who receive payment through SIAPE. Active, inactive, retired, and retired Federal Public Servants have the same right.
The SIAPE card has a limit of up to 27 times the value of the consignable margin.
It is also worth remembering that this amount depends on the credit policy of each bank. State and Municipal public servants may be subordinated to other rules and limits, depending on the type of agreement signed with the financial institution.
How To Find Out The Ideal Credit Limit
Although the credit card has a limitation stipulated by the bank, it is important that the user knows his ideal limit, without sacrificing the budget, beyond what is allowed or possible.
The ideal credit limit, therefore, is the one that is within budget – and if possible, of the assignable margin.
It is known that payday loans have lower interest rates. However, when the total amount of the invoice is not paid, the surplus amounts are subsequently charged at higher interest rates, as it is considered an extension of the normal term granted for payment.
Therefore, spending within the limit and making the cash payment is always more convenient. For awareness and for pocket.
In this way, in order for INSS Pensioners and Pensioners, Public Servants and Employees of private companies agreed to respect my own spending limit, some care can be taken. Take the time to check out these tips:
- Controlling card expenses for the whole family;
- Stipulate a daily and monthly limit of expenses;
- Maintain a reserve for emergencies;
- Monitor parcel purchases.
When the user loses control and passes the limits, the card no longer fulfills its main function. In this case, instead of facilitating the day to day, the card becomes more of a headache.
The payday loan credit card offers several advantages when compared to the conventional card. Your interest rates are lower and there is usually no monthly or annuity charge.
Another advantage is that the card is also released for those who are negatived. And if the user can not clear their invoices, reparcelling can be done.
Before hiring any type of credit it is important to develop a financial planning. Putting all the expenses on paper can help a lot at the moment.