For those who took out a loan, or are in doubt about taking one out, it is worth learning more about credit portability. This is a right created so that Brazilians can choose the best way to pay a debt.
Many do not even know that credit portability exists, as most financial institutions simply do not voluntarily disclose this information. The big problem is that portability is a regulation that is difficult to imagine, to predict, when closing the loan contract, especially since it is very beneficial for the borrower.
Check below in detail what credit portability is, how it works and how to get yours!
What this article covers:
What is Credit Portability?
In simple terms, credit portability refers to the right that a borrower can transfer his debt from one credit institution to the next, more advantageous one.
It’s like keeping the same phone number but switching carriers. The principle is the same.
How does Credit Portability work?
Seeing how credit portability works is an even more practical way of understanding what this regulation is. In order for you to enjoy this right, just follow a few steps. After all, it is necessary to do a little financial planning before even applying for the loan.
Compare interest rates
There are few people who, before falling into loan debt, really bother to check what interest rates are imposed by the institution they have chosen, let alone compare the rates given by each bank.
But comparing rates is the first step towards obtaining credit portability, as this is a requirement to obtain such right. In addition to the advantage of fees, the quality of service also comes into play as an argument for portability.
Choose the best bank
After finding out about credit portability, it’s time to finally do the research. It is necessary to look for which bank offers the lowest interest rate, in addition to debt payment conditions and service.
Please contact your bank
The last step to make credit portability work is to contact your bank and apply. But it is also necessary to ask for some data about your loan, which are:
- Debit balance update
- Contact number
- Credit type
- Payment system used
- Interest rate per year, both effective and nominal
- Amount charged for each installment, with differentiation of charges and principal amount
- Last due date
- Term, whether remaining or total
It is noteworthy that all this data is an obligation of the credit company. They can never withhold from you.
What is the cost of Credit Portability?
It is impossible to say whether there is a defined cost for credit portability. But it won’t be a surprise if the credit company you want to port to charges some amount. This is not defined, and it is necessary to check with the credit institutions if there will be any charge.
How to apply for Credit Portability?
You must contact your current credit institution first and then the institution you are interested in. Even though credit portability is a debtor’s right, it is not an obligation for institutions. It means to say that no bank can force itself to grant this facility.
Can I opt out of Credit Portability?
As a rule, it is possible to give up portability and return with the debt to the original bankbut only if the bank that carried out the credit portability has not paid the outstanding balance in the contract.
Credit portability was created between credit institutions for two reasons. The first is to increase competitiveness among banks, the second is a consequence: to make life easier for the debtor. But above all, the important thing is to carry out good financial planning and set aside an amount every month to pay the debt without errors.