How does the Next personal loan work?

Having options for when we need to deal with an unforeseen event or financial emergency is always good, right? That's why the financial market is always offering new credit options to its customers. And one of them is Next! personal loan

Have you heard of this option? Do you know how it works? Then come and we'll explain! In today's post, we'll discuss the main features of this credit model and the advantages and disadvantages of choosing it.

The content will be divided into topics and will cover the following topics:

What is Next?

Riding the wave of new financial options—fintechs like Nubank and Inter—arose Next. Created in 2017, Next is a spinoff from Bradesco bank, already targeting this new demographic, which no longer sees many advantages in traditional banks.

Despite still being a fintech – companies that develop digital financial products to make customers' daily lives easier – Next is a little different from Nubank, which is an independent financial institution.

How does Next work?

Much like its competitors Nubank and Inter, Next offers a standard debit card to its customers—which can also be used as a credit card, subject to credit analysis and approval. The bank also offers a savings account and overdraft limit for current account holders.

Although, like other digital banks, Next does not have a physical bank branch, the bank's customers can also be served at Bradesco branches and use the network's ATMs.

In addition to having an exclusive app—available for iOS and Android—Next also offers some special tools for its customers. Some of these include:

Cow

It's a great option for those who need to pool money with friends for a specific goal. This makes it easier to track all transfers and how each person contributed.

Flow

This tool is a great help for those who need better control over their financial life. With this option, customers can set spending limits for each category. This makes it much easier to organize their spending.

Treats

Who doesn't like a little perk every now and then, right?

Next customers have access to a range of discounts and benefits with partner companies such as Uber, Cobasi, Cinemark, Livraria Cultura, and a range of companies across a range of categories.

How does the Next personal loan work?

Like many other financial institutions, Next also offers loans.

At this fintech, customers can choose between three loan options:

Personal Loan
Installment Credit
13th Salary Advance

In this type of personal loan, it is possible to request a certain amount and, after credit analysis and approval, the customer obtains the amount they need, and a monthly amount is debited directly from their checking account.

With this credit model, the customer has up to 48 months to repay the loan. Additionally, depending on the terms of the contract, the customer can pay the first installment in up to 90 days.

You can access all the information about each type of loan on the website Next Bank.

What are the main advantages and disadvantages of the Next personal loan?

Among the advantages of Next's personal loan, perhaps the one that most attracts customers' attention is the repayment term.

These aspects make all the difference for the customer, as they give them more time to better organize their financial life and handle loan payments in the best possible way, without compromising their monthly budget.

Another advantage is the ease of applying for a loan. For existing account holders with a credit limit, the transaction can be completed directly through the app. You can also apply directly at Bradesco ATMs.

The way payments are made – with the monthly amount debited directly from the account – can also be an advantage in keeping your budget under control.

Now for the disadvantages. To qualify for a loan, the user must be a Next customer and have the credit function enabled. The interest rates involved in the transaction may also not be the most attractive option on the market. Therefore, it's worth researching thoroughly before choosing one.

Is a personal loan worth it?

Taking out a personal loan is a decision that should be carefully considered. Therefore, a personal loan can be worthwhile in cases such as:

Pay off more urgent debts

A viable alternative for those looking to get rid of debts that carry even higher interest rates than personal loans. These include the dreaded overdraft and credit card debts. By comparing the interest rates on these transactions with those on personal loans, you'll see that opting for credit can be a good option.

Carry out a personal project

We know that saving money for a project—from a renovation project to even that dream trip—can be a daunting task. In cases like this, a personal loan may be an option worth considering.

Dealing with financial emergencies

It could be an illness, an accident, or even medical treatment. No one is immune to unexpected financial hardship. In situations like these—where the required amount is higher—taking out a personal loan can be a good solution.

Conclusion

It's always a good idea to consider all aspects before opting for a personal loan. While this may seem like a good option in most cases, it's important to carefully consider the costs involved in this transaction.

Due to the high interest rates associated with this type of credit, if not carefully considered, it can seriously disrupt your budget. This can become a major headache in the future.

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Nathalia P. Silva

November 2, 2021