If used consciously, the credit card can be an outlet when it is not possible to pay for that necessary purchase in cash. Among the modalities offered by financial institutions, the payroll credit card is a viable option, but, like the conventional card, it has advantages and disadvantages.
Below we bring interesting information for you to understand how the payroll credit card works. Keep reading and find out if this is the best option for your needs.
Who can have a payroll credit card
Unlike traditional models, payroll-deductible cards are intended for consumers eligible to contract payroll-deductible credit, that is, one that is deducted directly from payrolls.
To access the card, it is essential that you fit into one of the following profiles:
- withdraw or pensioners;
- wage-earners with a formal contract;
- municipal, state or federal public servants;
- or even armed police officers.
It is worth noting that, in the case of professionals with a portfolio record, it is necessary to consult whether the company has a partnership with the card administrator, as this is what allows the payroll discount.
How the card works
The payroll card works similarly to loans of this type. Based on the amount of your benefit or monthly salary, a credit limit is available that can be used for purchases at commercial establishments, withdrawals and payment of bills.
Unlike what happens with the conventional card, the payment of the payroll credit card bill is linked to the receipt of your salary or benefit: the amount of the bill is discounted directly on the payroll.
It is important to know that the consignable margin (that is, the maximum amount of your income that can be committed to payroll loans) is 35%, being allowed to use only 5% for expenses with the payroll card.
If the value of the invoice is higher than 5%, the remainder must be paid by means of an extra payment slip, called a complementary payment slip, on the informed due date.
The interest rates charged by the payroll card are much more attractive when compared to ordinary credit cards, being in the range of 5% and, in the case of retirees and pensioners, 2.34%. The percentage of interest applied to common cards exceeds 14%.
What are the main advantages and disadvantages
The major advantage of the payroll credit card is that there is no consultation with the credit protection agencies, precisely because the payment is guaranteed with the payroll discount. There is also the absence of charging issuance, maintenance and annuity fees, in addition to the low interest rate.
As for the disadvantages, the main one is the uncontrolled commitment of part of the salary. Before using a credit card – or even applying for a payroll loan -, it is necessary to analyze the real need for use. This is the best way to avoid unnecessary debt, resulting from the unconscious use of credit.
Did you like our article and answered your main questions about the payroll credit card? So enjoy and share the post on your social networks. Who knows, maybe a friend just needs this information?