” Credit Portability ” can be a great alternative to repay debts from more expensive credit operations or simply switch banks to reduce debts from the debit balance. Since April, we have been seeing an intense notice on the TV and Newspapers about falling interest rates, a market that moves billions of reais per month, the segment of personal loans, loans and financing of goods.
The news brings a certain stimulus so that the citizens spend much more than they should, otherwise, they plan to consume this or that. On the one hand it moves the national market, on the other it makes a great villain of the population and throws the economy down, the default.
Banco do Brasil and Caixa have made private banks follow them, with rates of many banking products and services falling, good so that they are already committed to more expensive financial debts, since there is a possibility of eliminating a interest paid on each installment of loans and financing in progress, made before interest changes.
The problem for those who have financing, loans and personal loans are high interest rates, which if rolled can further stifle the borrower to exhaustion, leading to noncompliance with payment obligations, generating default.
Competition between consigned loan banks
The interesting thing about this history of the reduction of interest rates in Brazil on financial operations and services is that many are still not knowing what is happening, as the Federal Government has reduced rates, it has increased competition between public banks and banks private exchanges generating a dispute between them greater than it already was.
Difference in rates and Interest on loans
Now the interest difference of a product in the same bank can reach 3.5% to 5% more or less depending on each institution, in addition to the difference in the same bank there is still the possibility of finding in other banks even better conditions and rates , especially if the borrower carries the financial transaction and the bank account together. In these cases the question is – It is worth renegotiating the loan or financing agreement with your bank or exchange for another institution that has lower interest and better service.
This change of bank is called ” Credit Portability “, the transaction allows the customer to make the change of their credit operation if you want, no matter the reasons, the most accurate is the reduction of the interest rate. Just like the:
- Number portability
- Funding Portability
- Salary Portability
- Bank account portability
- Portability of social security, among others
The portability of credit should be a simple operation that allows the transportation of the balance due from one bank to another to achieve better contractual conditions than the original bank.
Functioning of Portability
The portability of credit works simply, the borrower, after locating a new banking or financial institution with which he wishes to maintain the commercial relationship, will make the discharge of his outstanding balance with the original bank, the transfer of resources is formalized directly by the new institution, which will become your new creditor, that is, the balance due will be managed by the new institution you have chosen, but with the new rates and contractual conditions negotiated between you.
Credit Portability Act
The law of credit portability has been around for quite some time, but only now is the transaction widely disseminated, and like any new product on the market, the consumer will find many discrepancies in information about procedures, conditions, fees, advantages, etc. , so the hint for those who have contracts involving high interest borrowing, and consequently more expensive debt, is to seek further credit portability research directly from financial institutions to compare the fees charged and the contractual conditions offered.
Who can do portability?
Every borrower who owns a loan that is eligible to do the portability, not all loans can be portabilized or consolidated . It is worth mentioning that in portability do not worry only with low interest, pay close attention to the additional transaction fees such as administrative fees, insurance and charges involved, if it is advantage to do the transaction.
Credit portability can be made as often as necessary or when the customer wishes, as long as it is advantageous, of course!