Personal or payday loans: what is the best option?

Have you decided to take out a loan to settle a credit card or IPVA debts? To renovate your home that exceeded the initial budget? Or even to open your own company? The next step is to better understand how the financial market works and what are the possibilities available for you to go through this moment with more tranquility.

The most common way to get the desired credit is through banks, but this type of transaction usually takes a long time to complete and it is still possible to fall into the high-interest trap.

A practice that has become very popular, especially among Brazilians, is online loans. Despite this being an option that began to be offered in recent years, it has won over consumers for practicality and agility.

Before going any deeper into online personal credit, see what type of loan is most within your profile.

Personal loan vs. payday loan

Personal loan vs. payroll loan

There are two main types of loans on the market: personal and payday loans. The differences between them can be decisive for you to make your choice, so we will explain each one of them.

The personal loan can only be applied for by an individual and is the one most frequently offered online. In this option, an interest rate determined by the chosen financial institution is added to each monthly installment. To make it easier to understand, this operation can be compared to buying money in installments.

The payday loan is granted to retirees, INSS pensioners, public servants and private-sector workers. The main facility is that the installments are directly discounted from the payroll. However, it is important to be aware of interest rates, the agreement that your company has with any financial institution and the commitment of your income. These factors can be decisive when applying for the desired credit.

Online loan differentials

Online loan differentials

After deciding what type of credit you want to apply for, do you imagine doing it without leaving home? The online loan allows for this possibility. This benefit is offered by innovation companies in financial services, called fintech.

Besides you don’t have to face the bank queues, other advantages are much faster approval and profile evaluation with less bureaucracy. Most fintech still offer the possibility to simulate conditions and see which one fits your budget.

After knowing all these advantages do you still wonder about the security of taking out the loan online? Stay calm! The whole process is confidential and you are as safe as if you chose to do it at a bank.

How to apply for the loan online?

loan online

Nowadays it is easier to obtain loans through the options offered by fintech. The entire process is done online and each one has its specificities.

In the case of Lite Lending, just register for your data to be analyzed. After you pass this step, it’s time to connect the account. This allows a proposal to be made based on your financial behavior, already indicating the amount, term, interest rate, the payment date of the installment, and how much your income will be compromised. One of the advantages is that, when doing this, you don’t have to worry about sending proof of income.

If you’re wondering about data security, we’ll explain it. Everything you enter in the application process is as secure as if you did it with the bank. It is not even possible to make any bank transaction with this data, so you can rest assured.