Payday Loan Vs. Credit Card: Which Is Right For You?

Last year was one of dramatic changes for many consumers across the United States

. The credit sector experienced immense changes, and as a result, many consumers across the country were greatly affected by the changes set forth by both the credit card companies and the government.

As a result of the credit card changes, many consumers were left either without credit cards or without the knowledge necessary to make well informed decisions regarding their credit cards. In fact, there were so many changes that many of us simply lost track of them and gave up.

New Spending Trends Emerge

An interesting trend emerged last year as credit card companies were raising interest rates and slashing credit limits, and while the government was attempting to reign them in with new credit card legislation; many consumers, simply fed up by all the changes, gave up their credit cards.

There were many consumers who had little choice but to stop using their credit cards as their credit card companies tacked on charges and more charges. Then there were those customers who lost the privilege of using their credit cards because the credit card companies felt they were too big of a credit risk. And then there were those customers who simply couldnt secure a new credit card under the new harsh credit card standards.

Where have Credit Cards Gone?

Credit cards have always been a security blanket for many consumers, and last year proved that many Americans who once relied on credit cards could no longer. Where do consumers go when they can no longer depend on credit cards? Or, where do consumers go when they no longer want to depend on credit cards?

This past year has proven to be financially challenging for millions of Americans, and for many, it started with the fall of the credit sector. If you are trying to decide whether a credit card or a payday loan is right for you, it may all depend on your financial situation.

When is a Payday Loan right for you?

If you cant find a credit card that offers competitive terms and rates, or if your credit score is poor and you cant secure a credit card, a payday loan may be a smart alternative. In addition, if you have chosen to end your dependence on credit cards, but you still may need assistance with your short-term financial needs, then you may also want to consider the advantages of a payday loan.

Payday loans offer a few benefits that credit card cannot: they are easy to apply for; they offer consumers quick cash that is often deposited directly into their bank accounts; and they require no credit check.

The repayment terms of payday loans are usually very short; in fact, many are repaid in a matter of weeks, thereby eliminating long-term debt like that found on a credit card.

For many individuals, payday loans simply make sense. If you have steady income, a current and active bank account and are at least 18 years old, you probably qualify for a payday loan. The next time you need cash and a short-term loan, consider the advantages of a payday loan.

by: Janet Gaither

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