loan with interest
Special Check – type of loan with interest updated daily and charged every 30 days. Have you ever taken a statement from your account or checked your balance and were surprised with a value beyond what you imagined? Well this is due to a service provided by the banks, called a overdraft. This is nothing more than a pre-approved loan that is tied to your checking account and available for you to use whenever you need it.
The famous Overcharge is released for almost everyone who uses checking accounts and has movement, however this service just like any other offered by banks, has a cost. That is, very careful to use this value, because it is a constant temptation available at all times to really try to use it, even if it is a little bit.
This type of loan with interest updated daily has interest from the first week of use, you pay daily interest only on the amount you use and not on all the available value. This amount, with the additions is charged whenever money is deposited in your account, ie if you are owing $ 500.00 on the overdraft, and deposit $ 1000 in your account, your balance will be $ 500, 00, as the amount due is automatically discounted.
This is an advantage from the point of view that the less time you owe, the lower the interest amount. However it is bad because if you forget that you owe, you can count on money that you no longer have. Many institutions in order to deceive the consumer and make him use the limit, put the value of the balance added to the value of the pre-approved limit, when showing the balance to the customer, both in the electronic box and in the printed statement.
That is, the client takes into account a value of R $ 400.00 of balance, and has a limit of R $ 500.00, when taking an extract, the bank shows as total available for withdrawal R $ 900.00, in this case, someone who is unsuspecting, distracted or just not aware of this kind of trickery, can be happy with the value, go out there spending and buying everything you can imagine. The scare will occur later when they realize that they have spent the money of the bank and that they will have to bear with very high interest to remove it.
Finally, the Special Check is very useful for an emergency case, when you need a small help for a very short period, however it should not be considered as an extension of the salary nor used always, as it is one of the most of the market.
Control the momentum, and if you have difficulty with this, you can ask the bank to block this type of loan in your account. Use wisely and it will not be cause for headache.