If you have a payroll but you still find it difficult to make ends meet, you can request a payroll advance. Payroll advances have two modalities: payroll credit or payroll loan. We define the characteristics of each type, banks that offer and why this financing method can save time and money.
What is a payroll credit? Is a payroll loan the same as a payroll loan?
As its own name indicates, payroll credit is a type of loan in which you are charged with the collection of your payroll in case you need financing for some extraordinary expense, taking as guarantee the worker’s own payroll or the income that is domiciled in the bill.
Payroll loans work similarly to a credit card: you have money available for when you want to use it, in a completely flexible way and the financing is obtained immediately since it does not require notarial intervention, saving expenses and time. Interest will only be paid for the amounts used. The payroll credit takes as reference the monthly income of the applicant an amount according to his payroll.
As for the second question of our title, the answer is that a payroll loan is not the same as a payroll loan. In a payroll loan, the bank grants you a certain amount and previously agreed that you have to pay back in monthly installments.
In order to grant these loans or payroll loans, aspects such as the seniority of the client in the bank or the stability of the applicant’s employment will be taken into account, since no additional guarantee is provided to the payroll itself. Comparing one modality to another, payroll loans may have more beneficial financing conditions than payroll loans, which usually have the same interest rates and commissions as a personal loan.
Best loans or payroll loans of 2020
In these cases where one or more payroll advances are needed, we find that most banks offer loans, while we have only found Bank of Good Finance that offers a Payroll Credit with total flexibility for the applicant. Next, we will discuss the characteristics of this payroll loan from Bank of Good Finance and compare it with the payroll loans offered by several entities in Spain in 2020.
Payroll Credit from Bank of Good Finance
The Mediolanum Bank Payroll Credit is a type of credit for a maximum amount of payroll. You can dispose of the money once or little by little, as you need it. This payroll credit is characterized because you only pay for the money that is used, that is if you ask for the advancement of payroll and finally you only need half, you will only pay interest for the part used. The requirements to use the Bank of Good Finance Payroll Credit are the following:
- Being an employed person or pensioner.
- Have the payroll or pension domiciled at Bank of Good Finance in the last 2 months, and for a minimum amount of $ 900?
Bank of Good Finance also offers a Payroll Loan for those who prefer this form of financing, with a 3-month Euribor variable interest rate + 7.5% for amounts up to $ 10,000 and a maximum term of 60 months to repay it.
Bank Good Lender payroll advance
Bank Good Lender allows you to request a payroll advance of up to 2 monthly payments.
- Interest rate: 0% (APR 10.01%)
- Maximum amount: $ 9,000
- Maximum term: 8 months
- Opening commission: 3.5%
- Requirement: The payroll.
Either when hiring a loan or a payroll loan, the most important thing is to return that financing in a timely manner and under the conditions provided so that this does not imply an increase in interest to be repaid. The best way to choose between choosing a loan or a loan is to consider what is the possibility of saving more for your pocket, looking at the APR of each option and its opening fees.