Is taking out a payday loan with a dirty name really impossible? After all, what exactly is it to have a dirty name? Is it different from being negative? If this is any of your doubts, you’ve arrived at the right place.
In the country, there are millions of people who are unable to keep their debts up to date. Certainly, the average people has difficulties to stay out of the red, but even if there are many, there are serious implications for those who have the “dirty name in the square”.
Is this your case? Keep reading this text, we will answer the questions above and also talk about your options if you need credit.
First, what it means to be with a dirty name
When the Internet was not broadcast, there was no federal system in which credit providers could check an individual’s reputation. In fact, what traders at the time did was to gather in the square and share the name of the defaulters. Hence the term dirty name in the square.
Nowadays it is not like that anymore and it is possible to have this information with just a few clicks. But what exactly is having a dirty name?
This term is applied to people who have purchased a product or service and have not paid off their debt. As a consequence, the company points the debtor’s name to credit protection agencies.
There are more than 61 million people on these lists and they all suffer the consequences. If you are wondering what they are, see below.
What are the consequences of being negative
The name credit checker inspires fear in just about everyone. But why does this happen? Well, a lot is due to the restrictions that this implies for the person’s life. Understand:
- Financing car, property and any other assets;
- Achieve the issuance of new credit cards or increase the limit of existing ones;
- Open checking accounts in most banking institutions;
- Possibility of having the overdraft canceled;
- Restriction on the issuance of checkbooks;
- And, the main subject of this text, getting a loan.
At least as far as getting a loan, that’s not a universal truth. Countless companies have seen a good opportunity in these 61 million people, not always being on one of the credit protection lists is the same as being a bad payer.
So, let’s talk about credit in general and also the options for those who need a payday loan, but have a dirty name.
payday loan opportunities with the dirty name
Many people believe that taking out a payday loan is a bad idea, however, this is not always true. This is a very useful option for those who have debts with several creditors, to pay off credit cards with high interest rates, carry out that renovation in the house, invest in their education and much more!
There is no reason to take out a loan, there are your personal reasons for doing so.
Currently there are several types of loans, we will explain the main ones and how they work and what are possible for individuals with a dirty name.
Financing is a form of loan that comes in handy for everyone who wants to buy some expensive asset, such as real estate and cars.
Financing is basically that, the name given to loans made to acquire goods and works as you are used to seeing. The institution releases the amount and the individual undertakes to make periodic payments plus fees and interest, usually monthly.
This type of loan usually has lower rates because you tell the institution what you are using it for.
As we said above, people with a dirty name are not able to finance loans from banks or other financial institutions.
2. payday loan
This is the type of loan that is pre-approved by the financial institution. It can be done directly at the ATM or even on the cell phone. The fees involved in this type of transaction are usually higher than those applied in the financing.
The great advantage of this modality is that the person does not need to explain what the money will be used for.
Again, whoever is on the credit protection lists certainly does not have any form of credit pre-approved by their banks.
3. Credit to negative
This type of payday loan is dedicated to individuals who have a dirty name, however it is only indicated as a last resort. The bank does not regulate this type of financial operation, in this sense rates can easily exceed 20%, while in other modalities they rarely exceed 10%.
This type of credit applies high interest rates as it is considered a risky operation for the company.
4. Secured loan
This type of payday loan can also be accessed by people who are negative, however, they usually take a little longer to be approved and put individual assets such as the car or even the property at risk.
In spite of this, it is more indicated that loans for negative individuals, interest rates are much lower, which makes this a financially wise decision.
5. Payroll loan
Payroll loans are the best option for those with a dirty name, because the amount is directly deducted from your account when receiving the salary, creating the guarantee of payment of the debt. This security is very important for financial institutions.
Typically, these forms of lending tend to be more advantageous in terms of fees and interest than most of the previous ones.
6. Loan for domestic workers
Not all professionals are included in the payroll loan, one example being domestic workers. However, if this is your case, don’t worry, we have the solution for you that is very similar to the payroll loan.
Don’t have access to most types of credit? Keep following our blog and find more tips to improve your financial life and, in the meantime, find the payday loan for people with a dirty name that is right for you!