A Payday Loan Or Your Credit Card, Which Is The Better Option?

You cannot completely rule out the possibility of certain times when your expenses go a little haywire. At such times you would need to take a loan or over draw from your credit card. Before finalizing the mode of getting credit, make sure that you look at the pros and cons of each of the options.

In the recent times, payday cash advance services have gained a lot of popularity. A lot of companies are offering advance payday service and as a consumer you can pick and choose what suits you the best. At the same time, the popularity of credit cards to meet expenses and even for day to day transactions is increasing. As a result, it might become difficult to choose between getting a payday cash advance and using a credit card. So, read on to know what could work to your advantage.

Paying through your credit card
Credit cards offer a lot of convenience today. They completely take away the need to carry cash. At the same time, their billing cycle is such that the amount does not get subtracted from your account immediately. As a result, you do not feel the pinch!

But then at the same time, what most people do not realize is that you end up paying an interest on the money. At the same time, in case of most credit card companies, as long as you clear the minimum amount, you can continue paying through your credit card, but once again there is a catch here. As your payment to be made to the credit card company keeps on increasing, so does the interest that you need to pay. So, don’t just get taken in with the idea of the convenience that a credit card offers, look at both sides of the picture.

Pay day advances
In case of a payday advance (USA), all you need to do is contact a lender, apply for the loan, and the cash is transferred into your account within 24 hours. In case of pay day advances, the loan has to be paid back on your next pay day. And in case you need an extension, you need to intimidate your lender by giving an application. Following that, the due date to pay back the payday cash advance would be extended.

In most cases, it is felt that the interest rate for getting pay day advances is high, but at the

same time these are hassle free and quick loans. At the same time, as these have to be paid back on your next pay date, so the interest does not carry over for a long period.

A comparison
Both pay day advance (USA) and credit cards come with their own pros and cons. Credit cards score over pay day advances because you do not need to apply for a loan. All you need to do is swipe your credit card and the payment is taken care off. In case of a payday advance, you need to apply for the loan, and following that the company carries out verification and then the cash is deposited into your account. This process usually takes a day and the cash is available in your account the very next day. So, while credit cards offer an instant payment mode, even payday advances are as good as instant.

In case of payday advances, the loan is cleared on your next payday; therefore this is not a long term loan. In case of credit cards, the payment can be delayed and this can lead to paying high interests that we often do not realize. Statistics indicate that we actually end up paying a substantial amount in compound interests on credit card amounts. As a result, both credit cards and payday advances offer unique benefits and at the same time have certain limitations.

Objectively speaking, a payday loan could score over credit cards on many fronts. So, make sure you think about all this before taking a decision.

A PayDay Loan Vs. A Bank Loan

There are times when the most unexpected expenses pop up unexpectedly. It could be because of a bill that you need to pay or maybe an urgent car or home repair. No matter what the case, at times it becomes difficult to wait till the end of the month to meet the expenses. And getting a cash advance until payday can pose quite a problem. Even though you can always asks your friends or relatives to give you a cash advance until payday, but this can uncomfortably, to say the least.

In this case, you can either apply for bank loans or you can get no credit check payday loans. No credit check payday loans have gained immense popularity over the past few years and offer numerous advantages over getting a bank loan or taking advance till payday from a friend or a relative.

No credit check payday loans

Despite its popularity, there are many who don't quite know what cash until payday loan really is. Simply put, a payday loan is an unsecured loan that is extended to you in order to meet instant cash needs. In the case of these loans, all you need to do is fill up an online application form that requires you to give certain personal information followed by information regarding your job and your employer. The basic prerequisite for these loans is that you need to be a US citizen and should be over 18 years of age. Also you should be a salaried employee. The approval process for no credit check payday loans is rather simple and the minute you get an approval, the cash is deposited directly into your account. As a result it does not pose a problem to get an advance till payday to meet any emergencies.

In order to get a bank loan, usually, the approval process takes time. At the same time, the advantage with these loans is that you do not need to pay back the cash immediately. But looking at it from another perspective, this also implies that you end up paying higher fees and a higher interest than you would pay for an instant payday advance. And if you need the cash instantly, it does not help to take a long term loan. With a long drawn approval process, it would take time to get the money from these loans. As a result, if you need the cash to meet immediate expenses, these loans would be of no help. Also, in most cases when you apply for a long term loan, you would need to present relevant collateral.

So, before you decide to apply for a payday loan or a long term loan from a bank, consider the advantages and the limitations of both before finally taking a decision.

A Guide to Payday Loans

A payday loan is a cash advance on your paycheck for usually up to 50% of what you will earn. There are many lending agencies that offer this service and more are springing up online as well. Between the Internet and the telephone system, you can have money directly deposited into your account in no time at all without stepping foot in a loan office!

Whether you have good credit history, bad credit history, or no credit history at all, there is a very good chance that you may qualify for a payday loan. Part of the reason is because pay day loan companies are like brokers who find lending agencies for their customers.

Occasionally, but not always, the customer will be asked to fax some information to the lending agency in order to allow them to make a decision on whether or not they will lend money to you and how much they will be willing to lend. However, there are lending agencies out there who do not require you to fax any information in order for them to process a loan, since they can verify some of your information online very quickly.

For this service, lending agencies will charge a fee or may charge a higher interest rate than other types of loans. Typically, you will be expected to repay the loan plus the fee or interest on your next pay date. If however, you cannot pay at that time, you may be able to get an extension.

Payday Loans are a great way to get a little money upfront if you cannot wait until payday comes. Perhaps you have an emergency or a great opportunity that you would otherwise not be able to enjoy if you waited until you got paid.

You need to be careful, though. Payday loans can be good, but they can be a dangerous habit to get into if you find yourself strapped for cash in the days leading up to every paycheck. Perhaps then you would be better off analyzing your budget and determining whether or not your spending habits or income is in line with your expectations.