subject: Why is a Payday Loan Better than a Credit Card? [print this page] Why is a Payday Loan Better than a Credit Card?
When you're seeking finance in a hurry there are a number of options available to you. However, the worse your credit history is, the more challenging it can become. Your options may be restricted, particularly if you were hoping for a personal loan from a bank. Ultimately, your choice may come down to a credit card or a payday loan. So which is best?
Both have their benefits and drawbacks, so it's important that you weigh these up for your current circumstances. In this article, we will look particularly at why you might consider a payday loan particularly over a credit card though.
Let's start with an obvious reason, timing. When you take out a credit card you can spend as much as your limit will allow and can repay it in small chunks over a number of months and years. However, when it comes to a payday loan, you will literally only have a matter of days to repay the entire amount.
Some might see that as a distinct disadvantage. But in actuality, it can help you to avoid getting into a situation where you constantly put off payments and pay interest month after month. With a clear repayment date and interest inclusive within the original quote, everything is in black and white from the outset and you know what it's going to cost.
A payday loan also offers a more instant solution than a credit card. When you apply for a card you can expect to be left waiting around for at least a few hours as they dig through your history and current details to see whether you're a worthy candidate. Even if they are happy with what they find, they may still pester you with calls just to bring the process to an end.
With many payday loans you won't even need to send a fax, let alone pick up the phone. The decision can be made in seconds too, so as soon as you fire off that application you can expect to know the outcome within the next few minutes. There can be delays for those who are applying for the first time, but largely it's a near-instant process.
Better still, if you're accepted the money can be in your account within an hour. So you're not left waiting around for the 3 to 5 days it takes for the credit card company to produce and send your new plastic companion. So if you have urgent bills to pay or you need cash immediately, there's no substitute for the immediacy that comes with a payday loan applications.
There's no hiding the potential risks of a payday loan, particularly the higher rate of interest being charged, but for sensible consumers they should be relatively straightforward to manage. It's almost entirely automated, the process couldn't be quicker or simpler and you can usually borrow anywhere between 500 and 1000 as a first time user, so there's plenty available. But best of all, almost anybody with a job can get one; so even if you've been rejected elsewhere, there's still a good chance that you can get a payday loan.
