If you are negative, but an emergency has arisen and you need money, know that you can get a loan. So we’ve separated the best options for you to get out of this situation:
What are the credit options for negative?
When financial institutions, such as banks and lenders are being denied, become suspicious and often refuse to lend to people in such conditions.
When these institutions agree to lend money, interest rates are generally higher. Therefore, we separate the types of loans that you can acquire:
1. Refinancing of property and vehicle
One of the credit options for negatives, is to place a property or vehicle as collateral for payment. But, this asset must be removed and registered in the name of who is applying for the loan.
In this mode, some banks may require that part of the money borrowed be used to clear debts and to clear their name.
If you need the money urgently, this is a great option. And there is no need to prove income and credit analysis.
In this option, you leave your property (jewels, watches, diamonds and valuables) with a financial or pawn house and receive 85% of the assessed value. The company gets your asset and you can only redeem when you pay the loan total (value received + interest).
The personal loan for negatives can be a way to pay off your debts at once.
The biggest disadvantage of the pledge is that the payment term is short, between 1 and 4 months. If you can not make the payment in this period, you will not be able to recover the asset. So one has to think hard about whether it will be possible to afford this commitment.
3. Payroll loan
This is a great option if you are working. Since the loan installments are discounted directly from the payroll, interest rates are generally lower than in other modalities.
It is worth mentioning that this type of loan needs to be well thought out, since the value of your salary will be lower during the payment of the installments.
But, not all financial institutions work with this type of loan for those who are negative.
4. Personal credit
Some fintechs offer personal credit to anyone who is negative.
In general interest rates are high and you have to make sure that you are doing a good deal before finalizing the application.
To do this, keep an eye on the CET value (Total Effective Cost) of the financial transaction. It will show the requested loan amount plus interest and financial transaction fees.
Companies that offer loans for negatives
Some companies work with credits for people with negative CPF, such as Simplic and Noverde .
Another option is the Low Interest company, which functions as an online simulator and offers more than 30 loan options for you to take out your debts quickly. Check the information on the website and make your simulation.
Is it worth borrowing, even if it is negative?
For those who are negative , high interest rates and the impossibility of negotiating payment (installments and interest rates) is a reality.
However, this can also be an opportunity to clear your name. Either by exchanging more expensive debt for cheaper debt or even taking some of the previous debts to the amount requested.
You need to plan and control your finances when acquiring a loan.
Some care before applying for the loan
There are many companies that take advantage of people defaulting to apply scams. Therefore, it is essential to research hard on the company that will lend you the money. And be wary of proposals with very low interest rates and many payment facilities.