Credit Cards or Payday Loans, Which is Better?

Out of cash? And your next payday is still a little far off? So what do you do? Should you look at payday loans or one of your credit cards? Well, the first thought that would cross your mind is to pay by your credit card. And it definitely is quite a simple option as you can instantly make payments without going through any hassle that you would have to deal with in case you apply for a loan. But now you have another hassle free-option for raising cash instantly. Apply for a payday advance.

Payday loans are the easiest way of raising cash instantly. All you need to do is select a lender - you can do this online - and apply for the payday advance loan. The lender would instantly verify the information provided by you and the cash would be deposited directly into your account within 24 hours.

- But then why take payday loans and when you have a credit card?

Credit cards - an insight. Credit cards usually seem to be the most convenient way of making payments. First of all they completely remove the need to carry cash around and at the same time you don't even need to go through the process of applying for a loan. Also, you need to pay your credit bill much later and this means that even if you don't have cash on you when you make a payment, you need not worry.

Rates and Fees

Now, the biggest problem with credit cards is that these come along with a lot of hidden fees that you would not even know about when you apply for the credit card. These could include balance transfer fees, cash advance fees and the interest that accrues daily on that balance. Also, in the recent times a number of credit card companies have shortened the billing cycle. This implies that in most cases, instead of having to pay back the credit card bill in 30 days, you would need to pay it back in 20 days. This implies that you wouldn't even have one whole month to pay back the money. And at the same time, just in case you cannot pay back the bill in time, the late fees are also quite high.

- Why a payday advance?

Payday advances do not come with any hidden fees. The payday advance service provider would inform you about the exact fees that would be charged for the loan and would also tell you the APR so that you can compare different loans before applying for a payday loan. In case an advance payday service provider refuses to give you the details required, all that you need to do is look for another lender! Also, the due date to pay back the payday cash advance is your next payday.

With this clearly established right from the start, it would be much easier for you to preplan in such a manner that you can pay back the loan in time. As a result, you would not need to pay any fee over and above the basic charge. Clearly, payday advance is more transparent and charges are simpler to calculate. Which is the reason why a lot of people opt for them.