There are times in life where a job is no longer satisfactory, or you need to move, or find facilities in a service you have the old version of, or, in a more specific situation, you have come across advantages in a possible portability of credit. In times like these it may be interesting to make a debt change for other banks and financiers who accept this type of credit.
In this post we will deal with the option that bank customers have free access to swap debts and financial services. Making a credit portability is to pass on the loan or the negotiations that you acquired in certain financial or bank to another option of your choice.
There are a few steps to follow so that you can safely do the procedure and not add unnecessary problems. Unfortunately, we can not always count on sufficient time to seek information satisfactorily. Continue your reading and know the most important points about loan portability!
When can loan portability be done?
The first thing you need to know before asking for portability is to know if the bank to which you want to pass your business or account debts accepts this type of transaction. Then look for information about the total value of your debt.
Upon its request, the Central Bank stipulates that the bank must make the information available within 24 hours. The customer can appeal if the bank does not fulfill its part. Check below the list with some of the loans available and also those that can be ported to another bank.
Personal Loan Portability
This type of loan is made in a bank or financial institution of your choice, with the acceptance of the contractual rules and the signature between the parties involved. It can be a bureaucratic process needing some documents. It is important that you pay attention to the interest rates charged. Because it is an account loan, it is easier to apply for loan portability.
Payroll loan portability
This type of loan can be interesting because it has lower interest rates. It also counts on the stipulation of a certain amount to which its monthly installment can arrive, helping the client not to commit an exorbitant amount of the salary.
Another advantage is the debit of the installment directly from the applicant’s payroll, so there is no danger of passing the due date. It also has the portability facilities.
Portability of overdraft
Overdraft is the type of loan that you should be more aware of. Due to the ease with which it can be requested, many clients will eventually ignore their interest rates which are usually much higher than those of the more common loans. That way, you may pay a few times more than the amount requested.
This mode of credit still can not be done portability, however, you can get cheaper loans and pay off the overdraft and switch banks if you want.
Rotational Loan Portability
Connected directly to credit cards, the revolving loan provides the credit handling amount of your card. It works as follows: you have an x balance on your card and make a purchase with it. The remaining amount of the limit can be used as a loan. This is the same as overdraft, you can get cheaper loans and clear balances from the open invoice.
At the same time that it brings ease both in service and payment, once you pay the installments through your monthly invoice, the interest is usually very high and may end up not compensating.
Also read these relevant articles on portability:
1. Portability of Loan or Renegotiate for cheaper interest
2. Purchase of Debt, Transfer or Credit Portability
3. Is Credit Portability Worth Or Not To Swap Your Loan?
4. Alternative credit portability to pay off debts
Every kind of loan or move that involves your finances, demands extra care. Making money in times of crisis and being able to keep it is a challenge for most people. Operations such as portability of credit can bring advantages if done with care, attention and mastery of important information, so as not to add problems that could easily be avoided.
So, did you enjoy learning more about loan portability? Do you want to continue reading this topic? So we suggest you see how to get better credit by using portability to renegotiate your debts for a more attractive rate. Check out!