Check loan is a form of credit that uses the check as a payment guarantee. This type of credit usually has friendlier rates and quick release.
Making a loan by check may be easier than you might think.
To apply, simply be the holder of a bank account and prove income compatible with the amount to be borrowed. Now that you already know that the check can also be used as collateral in loans, see all the rules to apply for and the tips to use it in the best way.
How does personal loan with check work?
In the form of a loan with a check, the applicant leaves as a guarantee, at the time of credit approval, the completed and pre-dated check forms.
The number of leaves anticipated varies according to the combined amount of parcels for the payment of the total loaned. It works like this: If you apply for a loan divided into 12 installments, you’ll need to leave 12 pre-dated check sheets.
The credit is released within an average of 24 hours. The first installment can be negotiated within the time frame that best fits the borrower’s planning. But it should be noted that these conditions may vary according to the credit granting institution.
It is also essential that the applicant heed the dates of deposit of the checks. In case of absence of funds, the document is protested. The name will be denied to credit protection agencies such as SPC and Serasa.
What are the advantages of a payday loan?
The advantage of personal check loans is that interest rates are lower compared to other types of credit.
This is due to the guarantee of payment that is given at the time of hiring, with the anticipation of the check sheets. Another factor that makes rates friendlier is the need for proof of income.
But we must pay attention to the conditions practiced in the market. They can vary from institution to institution. A more agile way of comparing is counting on the services of a brokerage firm that can make an online quote to raise the most favorable rates and terms.
Lastly, another advantage of the check loan is the speed in the release of money. The deposit is made, without bureaucracy, directly into the account informed by the applicant.
Who can apply for a personal loan by check?
All people who have a bank account and who can prove income are able to request a loan by check.
There are cases where some institutions accept to work with third-party checks. But this occurs on condition of becoming loan guarantors. However, this is not the most common practice, and is used when the borrower is denied.
To apply for a loan with a check you will basically need:
- Be the current account holder issuing the check sheets;
- Be with the name clean;
- Have proof of income. In this regard, some institutions require a minimum income for approval.
When applying for a loan with check have in hand RG, CPF and proof of address and of course the checkbook.
What is the best time to apply for a loan with a check?
Before you apply for any type of loan, it pays to make a financial planning. Either to anticipate the realization of some desire or to balance the accounts. Having extra money requires that the personal budget be well planned.
In the case of the use of checks, it is necessary to pay attention to the dates of compensation not to enroll. Personal loans are good credit alternatives. In general, they have lower interest rates than those charged for credit card and overdraft debts.
The secret to good financial organization is to take care that the loan installments fit into the budget over time in which you will be committed to paying the debt. Avoid applying for a loan if you are unsure as to your ability to honor it. Protect your name and get rid of unwanted sanctions that limit your ability to prove you are a good payer.
Plan your life goals and always count on Willy Loman to find the best personal loan terms.
Is using checks still safe?
The good old checkbook is still a well-used form of payment in the country. The pre-dated modality is adopted by 8% of Brazilians, as evidenced by a survey conducted by the Credit Protection Service (SPC) and by the National Confederation of Shopkeepers (CNDL).
It is true that the use of the check has shown significant declines over the years.
According to the Brazilian Federation of Banks (Febraban) the number of checks cleared in Brazil fell by 85% in the last 22 years. To get an idea, in 2017, only 494 million checks were offset. Already in 1995 – year of beginning of the historical series -, this volume was 3.3 billion.
Although with a current timid use in comparison to electronic media (such as credit and debit cards), the check is far from extinct. According to market experts, your job works well, especially in large transactions that require a formal payment record.
One of the reasons for the migration of check users to other means is the security factor. However, it is possible to use it well following some requirements for the correct completion of the document.
Here are some of Febraban’s best practices :
- Always issue nominal and cross checks;
- Eliminate voids and avoid erasures;
- Do not use a pen with ink that can easily be erased;
- Do not use pens offered by strangers;
Febraban also recommends the annotation of information as to who the check was passed, value and its date of issue, on the left-hand side of the ticket.
Already in the area of security, the entity warns against the risk of traveling with many checkbooks. The ideal is to take only the amount of leaves you want to use in the day.