Many people don’t realize it, but everyone has the ability to carry out credit portability, thereby transferring their outstanding balances to another bank that offers better conditions.
This right aims to provide feasible means for Brazilian consumers, allowing them to avoid continuing to pay high rates on credit lines due to being unaware of the option to transfer to another bank.
So, what is credit portability?
Credit portability is a way for a client wanting to swap an expensive debt for one that offers more advantages.
For example, if you’ve contracted financing with Bank 1 and later found out that Bank 2 is offering much more favorable rates.
Through this means, you can transfer your outstanding balance to Bank 2, thus reducing all fees along with the total amount charged.
Moreover, it is even possible to secure more favorable payment methods for your loan.
According to Resolution No. 4,292 of 2013, issued by the Central Bank, it’s recognized by law to carry out portability of outstanding balances.
This law was established to promote competition between banks and enhance payment methods for their clients.
Therefore, the client can choose which bank offers the best options.
However, many clients are unaware of the possibility to request portability whenever they wish.
This whole system must then immediately cancel the initial contract and pay off the balance due from the original bank to the new bank.
However, it’s essential to highlight that the values and terms of this new operation can’t be higher than the remaining debt at the time left for payment.
Understand how credit portability is executed:
Credit portability is governed by a set of guidelines set by the Central Bank
According to the first resolution, banks are obligated to carry out the portability of all payment methods.
This means that the bank must accept this new portability, but can offer the client another proposal.
It’s up to the client to decide whether or not to accept this counterproposal. Otherwise, the bank acquiring the client’s debt isn’t obligated to accept this new client or match the value offered by the first bank.
In such cases, the new bank can re-assess the client’s credit and not accept the credit portability.
Before carrying out portability, the person must request a credit description document, thus obtaining all processes that will involve this new operation.
In this way, they can compare the offers and choose which one is most attractive.
After determining which portability will be best and being approved by the new institution, the process can begin.
These processes between banks will be carried out electronically, according to the means established by the Central Bank.
Thus, the new bank should pay off the balance to the original bank, thereby settling the loan amount.
All costs related to this operation can be deducted from the optant. Moreover, there’s also portability through change, where the differing amount is sent to the applicant’s bank account.
How Much Does It Cost?
Typically, there are no fees charged for this operation, except in contracts involving real estate or leasing.
However, the new bank may charge a registration fee.
So, the person will then be able to cancel the agreement for free, provided the bank hasn’t made payment to the original bank yet.
Who can apply for loan portability?
All types of individuals, whether they have some form of credit operation with a financial agency in the National Financial System (SFN), can request portability. Here’s the simplest way to carry out this process:
Compare interest ratesRun simulations at different companies, considering the same value, thus comparing all fees that will be charged by the CET. Choose the bank that will offer you the most attractive offers for your debts.
Request information from your bank
You will need to obtain the following information about your debts to carry out your portability:
Contractual code;
Current debt value;
Document showing debt growth;
Payment methods; Credit methods;
Value of nominal and annual effective interest rates;
Value stipulated for each installment, offering a detailed breakdown of the principal amount and other charges;
Total and remaining times; Deadline for the last installment of the agreement. Negotiate with the new institution
The new bank may not accept portability. Therefore, negotiate with them and, upon receiving a favorable proposal, move forward.
Types of Portabilities
Portability concerning consigned loans is a specific type of portability, aimed at clients who have their loans being deducted from their paychecks.
This portability has specific rules and conditions, which should be verified with financial institutions.
Remember something fundamental, understand the conditions and terms of the contract before carrying out any credit portability.
Consigned loan portability is available for people registered as public employees, people who work in a private company, retirees, and also pensioners.
The new bank must have an agreement with the agency that will pay the client’s salary or benefit.
Portability can usually take up to 10 business days, but may vary according to the credit system of the financial institution.
Portability in real estate financing
It can be requested by people linked to any type of real estate credit. The new banking system will have to pay off the outstanding amounts with the original agency, thus offering other financing methods for the remainder.
Portability in vehicle financing
It’s also possible to carry out portability in the case of vehicles to another agency that offers more affordable payment methods.
Best banks for portability
Any financial institution offers portability.
Each offers its modalities, and the client can negotiate directly. Get to know some of them that offer this portability system:
Caixa Agency: Has portabilities for salaries, real estate credits, personal credits, and consigned credits.
Itaú Agency: Offers loan or financing transfers with more attractive interest rates.
Santander Agency: Has portability for salary, consigned loans, real estate loans, and also pensions.
Safra Agency: Offers credit portability.
Bradesco Agency: Offers the transfer of outstanding loan and financing amounts.
Banco do Brasil: Offers portability for both consigned and non-consigned loans.
Inter Agency: Offers portability of consigned loans. Can reduce loan amounts if you need to maintain the same value. Is it worth doing the portability?
Bank portability is an excellent choice for people who have problems affording their installment payments but need to quickly pay off their debts.
However, you need to carefully explore your financial situation and calculate the remaining open value.
It’s essential to point out that portability is only advantageous when the CET of a new operation is lower than the one proposed earlier. Check out the main points before execution:
What is the debt value?
Portability should only be made when you have the exact outstanding balance in hand. Only with this information will it be possible to proceed with the new agreement.
Assess how much you can afford
List all revenues and expenses, including bill payments and debts, as well as daily expenses.
Evaluate which expenses can be reduced or eliminated. Check the debts with the installments to be paid monthly and your income. Proceed with the hiring only if the pointed numbers don’t compromise more than 30% of your income.