Why do website, lending platforms and online lending companies ask for the bank password for online bank access? Sometimes all you need to know before submitting a loan application is information. If you have heard about online loan sites, which do everything the fastest, then you need to undergo credit assessment and approval processes, except for the online lenders themselves, this conversation about asking the bank’s password will likely be negative.

One of the area that causes most concern when borrowing money is security, especially when online nature to make loans by phone and smartphone with applications is not as widespread as in countries in North America, Japan, Australia and the Euro Zone where this type of operation is more common among citizens.

The problem of trust, as I said, is information, so when you come across the request for the bank password to verify the bank statement and the bank transaction, the applicant is in a kind of trance and can no longer proceed with fear of being fraudulent. Think.. How will I be sure that my bank information will be kept safe? How do I know if the site I’m borrowing for is trustworthy and secure? How do I know if entering my password with the bank details will not be a problem? Look at the references and social signs of the company.

Why do lenders need my Internet banking details?

This little quick guide is intended to inform why creditors ask for this information (bank access password), what they do with their internet banking login, and how their financial details are kept safe during the process.

The online loan and lender websites that offer internet loan ask for your bank details simply because the system of analysis and approval needs to access if your banking information checks and also see your monthly movement. This is the most efficient and quick way that lenders are able to process your loan application much faster than private banks.

Instead of sending your bank statements in the last three months, you provide your passwords and the lender can access them instantly and in just seconds you know whether you are eligible or not – saving time and work, that is the goal.

Will online loan sites have full access to my bank account?

No, anyway! When you submit your passwords details, the online loan or lender site you are requesting credit through the form, will use only to access the transaction information and not to make transactions.

Popular companies that offer this type of service include Just Online and MoneyMan. This is done almost instantly and most importantly – with total security and privacy. The online lender will not have full access to your account (for this it is required). You will only be able to see the information you need to evaluate and approve your borrowed money order.

Is it safe to give my bank details and password on the Internet?

• Yes, the credit company (fintechs or marketplace) that you are requesting the loan will not have full access to make transactions with your bank account, it is only for reading your bank statements
• Your login details (banking access) on the Internet will not be stored in the browser or cached on any computer or network access
• The process is all done via encryption in the same secure template of online banking
• No information is passed on to third parties

Do I have another alternative to submit my bank details?

Most online lenders and online application sites through credit and loan applications may allow you to send copies of your statements per PDF file by email to be verified manually.

However, keep in mind that this process will generally lengthen the response time by 5 to 10 minutes for a few days, so the “fast response time” that is usually the purpose of the online loan will be lost.

However, if you are concerned about delivering your Internet banking login to make a personal loan, be aware that all government employees to have their approved applications need to report data such as a bank password and also sensitive data such as alimony passwords and access to the official portal of the paying agencies.

Knife of two peaks – the other side of the coin

Understand that the concern for security is not just the applicant. The lender, in the case the company that will grant the personal loan, also needs to keep their operation within an acceptable level, so this type of request is extremely necessary. Without talking about the default rate and increasing insolvency in bank and alternative credit, it is also mandatory to know if the applicant can fulfill the commitments he wants to make.

So when you find a website or company with an internet application or platform that asks for your password, it is not fraud but approval policy and credit analysis, do not be uninformed or ignorant to the point that you think the company is fraudulent only because of the dot.

Our advice is to get as much information about the lender, and only then create your conclusions. But if you are still not satisfied, look for another company that does not have this bureaucratic facilitator. Access the link to some secured loan companies, and over 12 reliable online loan companies.

Anyone who has ever been negative should have thought of getting a loan to pay off the debts. Several financial institutions offer this type of credit, but is that really the best option to get out of the heat? It seems like a good deal to use that money when all the banks are saying “no” to you, but the story is not quite like that. Understand how the loan works in this case and whether it is worth getting into.

How Negative Loans Work

The focus of the loan to negativado is to lend money to those who delayed the payment of debts and got their name dirty. Most financial institutions reject this type of client because the risk of default is once again very high.

What is the interest rate in this case?

If the risk of the loan to negative is high for the lender, the interest rate will also be. In many cases, the cost of taking this money outweighs what is charged on the credit card or overdraft, more expensive modes of interest. And what does it mean? The loan gets expensive and the chances of a person getting into a snowball are much greater than she imagines!

So is negative loan good?

In a word, it depends. Most of the time, no. The interest rate is often too expensive to help those who are in debt. On the contrary, it can sink the consumer even more. Obviously, it is not possible to speak in all cases, but Luders indicates that you always look for other solutions.

And what to do then?

It is necessary to tackle this problem at the root and to delve deeply into the understanding of your finances. The application of GuiaBolso, partner of Luders, helps to have an accurate view of where the money is being spent and in which of these expenses it is possible to economize.

Also, if you are in debt, renegotiating your debt is a good second step and with high chances of success. In general, it is possible to obtain generous discounts and installments of what has been pending. After doing this, then the tip is to get a personal loan – you take out all the previous debt and you get smaller installments and interest in your pocket.

Making peer-to-peer loans or P2P financing on online platforms is currently one of the alternatives for those who do not have access to banking and financial means. The fact that many of us at some point in life needed or need to borrow between individuals or money from friends or family instead of going to a bank.

This procedure is the simplest and fastest there is, it does not require collateral and often the “loan” comes at zero interest rate. In the peer-to-peer (P2P) loan we can say that it is similar, but it happens on a much larger scale and the people who lend you are not your friends – they are investors. Although peer to peer loans are not interest-free, the fee charged on operations are much lower than those charged by other private lenders.

Peer-to-peer loans

What is P2P lending? Refers to unsecured personal loans that occur on online platforms, the most interesting is that it “does not have” the involvement of a bank or a financial company. While a bank acts as a lender and deposit holder, in the peer to peer it lends money to individuals and companies mutually, a lender (P2P investor) simply provides loan to the borrower requestor all together in a same online platform created so that they can negotiate together.

It seems to be collective financing?

Not exactly. In peer to peer loans, loans carry interest, but in the case of collective funding (crowdfunding), money is provided as equity capital for a business or as an interest-free donation. In P2P loans, lenders and borrowers must register on the platform and go through a verification process. The platform needs technological mechanisms for analysis and also information from credit agencies to evaluate borrowers.

Every investor and borrower can handle various credit applications. In fact, many P2P lending platforms do not allow an investor to finance more than a certain percentage of a single contractor to avoid and minimize credit risk.

Once a solicitor and an investor agreed to an offer, they entered into a peer to peer loan agreement or (intercompany loans). Overall, each investor’s money goes into a blocked account managed by the platform. The loan is released after the legal formalization of the operation and agreed on how to collect the amount of installments that will be repaid monthly.

Why is peer-to-peer important?

P2P loans are emerging as a major alternative source of cheaper financial resources for people, small and medium-sized businesses and micro-entrepreneurs (particularly small ones) who may not be able to borrow from the big banks.

Like fintech’s advancement in the peer-to-peer segment, and lacking physical presence and a large number of employees, online platforms are able to handle low-cost interest-bearing credit operations.

How important is peer to peer fintechs?

Simple! For those who want to get some money quickly financed for a small, medium and for micro-entrepreneurs or for some personal need (personal credit), but that does not have to give guarantee, at that moment the platforms of peer to peer are the most recommended for borrowing low-interest loans and financing, and little or no bureaucracy.

Peer to peer for negative?

The fact of being negative does not prevent the platforms from releasing peer-to-peer loans both for companies in these conditions both for individuals, however, most creditors do a credit and risk analysis and may not be released or find some investor who wants to take the risk. However, there is nothing that will prevent a person from being denied or restrictive company trying to finance or loan peer to peer.

Peer to peer for those who want to invest

As an investor, you may be tempted by the incredible returns that P2P lending platforms offer, but remember that it is an investment that has risks and depending on the platform these risks may be higher than others. Even in countries where p2p loans are regulated, there is no monetary protection provided to investors in the event of default.

But if you are in a peer-to-peer lending network, either be a conscious investor or a borrower who completes your commitments with your lenders.

The types of personal loan are varied! Do you know how it can be done? Where can it be requested? Borrowing money is a form of personal loan granted with or without collateral. To simplify the explanation, in general, it is a financial transaction carried out to be able to raise funds in money with the addition of the collection of interests and some tariffs.

The contracting is usually done in credit institutions, private and state banks, credit companies, associations, category unions, credit unions, insurance companies, non-governmental organizations, relatives and friends, and private lenders (loan with moneylenders).

The transactions are offered at institutions authorized by the central bank to lend money, the action involves a number of prerequisites such as pre approval, collateral (vehicle refinancing and real estate loan), guarantors, guarantors, pre-dated checks, payroll, credit card (card withdrawal), among others.

Characteristics and types of personal loan

Regardless of how the personal loan is made, a common feature among all lines of credit and financing available in the market is, all must be repaid to the creditor in monthly installments plus interest, that interest can be fixed or pre-fixed.

Repaying the loan on a number of installments is another feature in common, however, the amount changes according to the type and amount that the applicant can commit in their monthly income. Term of the loan? When hiring a personal loan, the client usually chooses or is determined by the lender a specific term to repay the money financed in installments paid monthly. Therefore, calculating the value of the parcels and choosing the one that best fits the pocket, is sure to save some wear and tear ahead.

What are the personal loan terms

The terms of the personal loan vary between short, medium and long terms, institutions offer periods between 10 days (loan with credit limit), personal loan up to 30 days but are usually granted from 6 installments reaching a maximum of 48 installments or 60 installments, of course the term changes to + or – due to the criteria adopted by the creditors. It is worth remembering that interest rates are disclosed by the CB.

It is worth remembering that economists and financial advisors are unanimous in advising against taking personal loans without an emergency need of any kind, many forget that loans are debts, and if they are badly managed they can destroy the budget or the financial life of a citizen or a family. However, if a conscious and well-managed personal loan is made, the effect can be beneficial.

Personal loan conditions

With the exception of private loans, operations granted by credit and banking institutions only release the resources requested to the client after a credit analysis has been made in the register, there is some financial backlog, restriction on the name or registration of the client’s CPF in the organs such as Credit protector etc., the majority do not lend the requested money, being the exception only for the “personal loan with payroll”.

Pre-approved Personal Loan

A type of personal loan easy to get at any time. It is free of bureaucracy and can be requested day, night or until dawn, do not need to go to the bank to sign any paperwork, it is called the credit limit.

This type of operation is framed by a pre-approved personal loan, to hire the account holder to make a phone call or give a few clicks through the access banking system on the bank’s website via Internet, done that, the money value is made available immediately.

There are numerous types of personal loan, modalities, lines of credit and financing, if you are planning on making one, the best tip is to research, analyze and ponder; if you are not getting it, make the hiring aware that the loan will have to be returned to the lender, otherwise you will have problems.

A cash loan can be made for various purposes. Today it is possible to make a loan to repay another loan. In fact, with the Selic low, today’s conditions are much more favorable so you can borrow money with cheap interest to pay off an existing higher interest loan made last year or more months. The need to refinance a loan is a problem for many borrowers. But be aware, the terms of the new loan should be different from the previous one to be the best option.

Money to repay another loan and lower interest

Life does not always remain stable, but you can solve a difficult situation if you have your own money in savings. If this is not possible, you need to at least have credit in the square so you can apply for bank, financial and credit companies and make your short or long term personal loan application. Having credit is the best way to get cash for any need even by paying high interest in some cases like the loan offers to the negatives.

The bank gives unsecured customer interest money, and the customer is free to use it at his discretion. The utility can be the purchase of equipment, medical and dental treatment, travel or take out another existing loan.

A cash loan to pay off another loan is usually issued to an institution, co-operative, financial or p2p lending platform in general, credit is provided with a lower interest rate and fixed amounts of monthly payments. Such an operation helps in reducing the number of debts, installments or numerous existing financial commitments. If you hire a more advantageous offer today, all of your loans can be prepaid by paying installments or taken out by one with more favorable terms.

Loans from other credit institutions may be advanced in most Brazilian banks. From those with longer maturities to the shorter maturities and cost.

The loans actually intended to pay off another loan exist, they are called debt consolidation, credit portability, debt purchase, debt transfer and so on. But they are targeted transactions that offer a lot of bureaucracy to complete. Some banks regard such loans as risks to themselves.

Advantages of getting a cash loan

The advantages of getting a cash loan to pay off another loan besides shortening the term, the amount of installments and interest can be to create a relationship with another bank or institution that offer better resources and credit conditions for their use. Each bank may have specific and additional requirements, but generally everything is in accordance with BCB standards.

Statistics show that half of the people who can take payroll loans for example, also have other credit obligations and, at the same time, pay more than two loans.

Approximately 19% of borrowers have at least 5 loans outstanding in their benefits, payslips and salaries. The most common reason for the difficulty of repaying the loans may be the excessive burden of credit placed on themselves.

You do not need to apply for a loan to repay other loans because the effective rate of a new loan is less than the percentage of the current loans. Go ahead, you can also refinance the current contract.

Remove or extend the term of the loan

If you are a borrower and are in a situation of unforeseen circumstances and believe that you will not be able to meet your credit obligations over time, contact the bank to extend the term of the loan with lower installments or arrange a way to finish the loan ahead of time (remove).

If the bank does not comply with your requests, ask the other bank to make a new loan based on portability or debt transfer. Any questions about how to make a cash loan to pay another loan or consolidate all your doubts, contact or research the subject on the blog.