Nubank again explains new card with limit: “it is not prepaid” | Finance

THE Nubank left some people confused with the new card where you make your own credit limit: is it a prepaid card? Debit? Neither one nor the other, explains fintech: in it, you deposit a value and use it as a limit for installment purchases and subscriptions, without having to top up. It is similar to the CDB + Credit Limit offered by Banco Inter.

Nubank Card / Reproduction

Nubank’s idea was to facilitate the limit increase for customers. This is usually done through a credit analysis, but your score may not reflect your current financial situation.

So, instead, we have a card with R $ 0 of pre-approved initial limit, in which the customer deposits an amount that serves as a guarantee (or guarantee) for fintech.

“For example, if a person wants to have R $ 200 to use in the credit function, he deposits R $ 200 in the account”, explains Nubank in a new post on the official blog. “This amount is released immediately for use in credit. When making a purchase of R $ 150, that part of the money is separated and the limit becomes R $ 50. At the end of the month, the customer pays the card bill. ”

What is the difference between Nubank and prepaid cards?

In this new limit model, it is possible to make more deposits to increase it. “But don’t get confused: this is not a prepaid card”, warns the company. It lists four main differences:

Nubank Card Prepaid card
Allows you to split purchases? yea no
Is the deposited amount a balance or a limit? is limit, requires payment of monthly invoice is balance, requires recharge (no fixed term)
Is it possible to redeem deposited amount? yes, but only the part of the limit that was not consumed no
Does it generate credit history? yea no

To hire the new Nubank card, just tap Add limit on the app’s home screen and follow the instructions, as shown in the GIF below:

App gives option to add limit with account balance (Image: Playback / Nubank)

App gives option to add limit with account balance (Image: Playback / Nubank)

“The Nubank card for adding limits allows the possibility of splitting purchases and the possibility of redeeming a value used as a limit”, says fintech. “In this way, the person builds a history (installments, paid invoices, limit addition, etc.).” In prepaid, this is not possible.

At Nubank, you can withdraw the money deposited as a limit – but only the part that has not been consumed. “For example, if you deposited R $ 100 and spent R $ 50, you can only redeem R $ 50”, says the company. “To have access to the R $ 100, it is necessary to pay the invoice first.”

Banco Inter increases investment limit

CDB plus Banco Inter's Credit Limit (Image: Reproduction)

CDB plus Banco Inter’s Credit Limit (Image: Reproduction)

This product is similar to the CDB + Banco Inter Credit Limit: here, the customer receives (or increases) the card limit when making investments in CDB, which yield more than savings.

There are two options. If Inter has not approved credit for you, you can use the applications at the CDB as a limit. To do this, go to Cards> See credit options inside the app; on the flap Investing, touch Invest and choose the amount you want to convert into a limit.

If you already have the credit mode enabled, you can increase your limit. In this case, the path is different: go to Cards> Limits, touch the banner Increase your limit and choose the amount to be invested, serving as a guarantee.

In both scenarios, it is also possible to increase the limit through the section Investmentstouching Fixed Income is at CDB Plus Credit Limit. The minimum amount is R $ 100.

“The applied balance and the net income (discounting the income tax) are entirely yours, but it is worth remembering: in case of default for more than 5 days, we can use this amount (or part of it) to reduce the debt balance”, he explains o Inter in a help article.

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