The special check is with new rules defined by the Central Bank in July 2018. The change came to reduce the number of defaulters and have fairer credit lines.
Despite the change, the modality is still among the most expensive in the credit market.
But why is the overdraft expensive?
Have you ever been in debt with a bank and still have an approved credit limit? So you got the overdraft.
With the limit pre-approved automatically, the banks ensure they will be paid back at very high interest rates.
- Understand what is overdraft and why to avoid its use
And what are the new changes?
The consumer will know that they are overdrawn, since they will not automatically enter the mode, which often occurs without the client realizing it.
Now banks will have to adhere to the four new rules:
The bank will notify the customer that it has overdrawn, and will also send messages instructing its smart use, so that it is done only in emergency situations.
To avoid confusion, the overdraft limit will be separated from the amount of the outstanding balance.
It will be possible to try to negotiate the debt by contacting the bank.
In cases of debt that exceeds 15% of the credit limit for more than 30 days, the bank should provide another offer of credit with more affordable interest.
Other credit alternatives
It is possible to get lines of credit with interest rates well below those of the overdraft, that is precisely the role of fintechs.
Fintechs are companies that are gaining more and more popularity in the credit market, specialized in technology and finance, they bring more affordable interest rates with longer terms.
Search among the various options and evaluate which ones suit your need.
With that in mind, have you ever played with us? Do not waste anymore time!
A Financial Group guarantees you a fast and secure personal loan, and the best, everything is online. Come and know our rates.
Financial Group , you far from red.