Porting a credit is not yet so common in Brazil. But this is because many consumers fail to take advantage of certain advantages because they do not know how this transfer works, for example. Did you know that credit portability allows you to pay lower interest rates on a loan or loan that is already in progress? Yes, the process allows you to take your credit from one bank to another.
This idea came about when the government wanted to stimulate competition between financial institutions, which can compete by offering lower interest rates. However, many people still do not know how portability works. Anyone – whether natural or legal – can request the transfer of a credit operation or lease. Once approved, portability allows debt to be settled with one bank and payments to continue with another.
But why is credit portability interesting? Find out when it is worth transferring your debt to another bank and also learn how this process can be started. Check out!
Key Advantages of Credit Portability
Credit portability allows a debt to be transferred from one bank to another. The change may be due to a more interesting interest offer or a cordial service, for example. To change a loan or financing simply ask the debt calculation to the bank where the loan was contracted. This, in turn, is required to provide all the information. You then need to contact the chosen bank to make a new contract and take over the old debt. After that, the outstanding balance with the home bank is settled.
Credit portability exists for various products such as credit card, overdraft, mortgage and loans. Anyone who has credit with a Financial Institution that is part of the National Financial System can use this facility. One of the requirements is to have part of the contract in progress paid off. This may vary from bank to bank, but on average corresponds to between 15% and 20% of the total number of contract installments.
Transferring debt from one bank to another usually does not charge fees, except for leasing and real estate financing contracts. However, the new financial institution may charge fees for the start of registration.
Reduction of installment value
The biggest advantage of doing credit portability is taking the debt to a bank with lower interest rates. Thus, the contractor continues with a credit of the same value, but pays less interest each month. This reduces the value of the installment, as the interest rate is a percentage of what is due monthly. Even if it seems little in the long run, reducing the value of each installment makes a big difference in the pocket.
Moreover, with lower interest rates and reduced installments, in the case of payroll loans, it is still possible to release part of the payroll margin. This margin stipulates that Retirees, Pensioners, Civil Servants, Armed Forces and CLT Professionals can spend up to 35% of their monthly income on payroll-deductible loans, either a loan (30% of monthly income) or credit card (5% of income). monthly).
When this limit is reached the person is unable to apply for new payroll loans until the current debt is paid off. In other words, credit portability is also interesting for those without a consignable margin.
No need to open new bank account
Credit portability also allows the person concerned to choose any financial institution to carry their debt. This is, by the way, one of the reasons that portability exists: more freedom. To make portability, therefore, you do not have to be an account holder for the new bank. That is, the loan or financing can be transferred without the need for a new bank account to be opened .
In other words this also means greater flexibility in choosing the bank that best meets each type of need. But while this operation has several advantages, it is more recommended in some situations than in others. Know what they are.
In which cases is portability worth it?
Although it is a simple and practically no cost process, it is not always worth porting a credit. This is why it is very important not only to know how this operation works, but also to evaluate in which cases it applies and can bring the most benefits.
When the interest rate is cheaper
If another bank offers cheaper interest rates then credit portability becomes advantageous . Cheaper rates make the monthly payment of credit lower and even part of the payable margin is released. However, you must evaluate the Total Effective Cost (CET) of the transaction. Comparing CET, ie all the costs involved in a loan, you know which option is really worth it.
When support or service is best
Another reason that drives the search for credit portability is the service. When the contractor is dissatisfied with the support and attention he receives at the current bank, he can transfer his debt to another better rated bank . Portability is also interesting for anyone trying to organize their finances. Thus, concentrating all debts in one bank can be good for those who are negative.
In which cases is portability NOT worth it?
As has been said, not always porting a credit to another financial institution is worth it. Sometimes, as the process takes on average up to 20 business days to complete, depending on the term of the contract is not indicated.
Learn how to analyze when credit portability is not worth it:
When the contract expires
Carrying a credit that is about to expire can be a procedure done unnecessarily. In this case, if there are other alternatives. You can renegotiate the remaining debt in the same bank. Or, you can pay off the credit in advance, if you can afford it. Even the payroll loan agreement can be paid off before the deadline.
When the interest rate is the same
If you look at other banks and find that interest rates are the same or higher, be aware that it is not worth applying for credit portability. Unless, of course, there is some other reason to request the transfer. Credit portability is designed for the benefit of stakeholders and should therefore be used in really worthwhile cases. Otherwise, it can only be seen as buying a debt or transferring the contract from one bank to another without any advantage to it.
But if, when evaluating that portability is a strategic and important decision, be aware that you can do this process online. Thus, it is not even necessary to go to a bank branch to find out the best bank to transfer your debt. Check out!
How to do Credit Portability online?
The first task of anyone who wants to exchange bank credit is to gather information about the current contract. And this must be done directly with the financial institution. The main data to be delivered to the new bank are: contract number, outstanding balance, credit modality, interest rates, terms and payment system, monthly installments amount, among others.
Next is interesting to research and evaluate if the bank exchange really is worth it. For this you can use an online payroll credit simulator. This tool allows several proposals to be analyzed at the same time. After choosing a new financial institution, it is up to the applicant to make the credit portability process. Such a process can be started online at the bank where the contract is located, and can also continue via the internet with the request to the new bank.
Doing credit portability when thought through and well analyzed can help save money. Therefore, it is always interesting to keep up to date on the proposals of other banks. Want to find a new bank and carry your debt from a payroll loan? Access the online payroll loan simulator now and find new proposals for your current contract.
Simulate, compare and hire online, with the same security as those going to a bank.