Why Credit Cards are Better Than Payday Loans
Look At Your Credit Cards Before Taking Out a Payday Loan
If you have a cash emergency in between paydays and your in a pinch, there are dozens of payday loan companies willing to lend you the money you need. Unfortunately, many consumers don't realize that a cash advance from their credit cards is ten times better than any payday loan ever will be. If you've ever considered a payday loan, let me explain why your credit cards are a better choice.
The Cost Factor
Many people avoid taking out cash advances from their credit cards due to the higher interest rate associated with cash advance transactions. However, if you compare your credit card company's cash advance interest rates with the interest rates of payday loan companies, you'll soon discover that your cash advance interest rate is a downright bargain.
Over Time or All At Once
With many payday loan programs, you have to pay your payday loan off in full when your paycheck arrives. However, if you get a cash advance from your credit card, you can pay your credit card company what you can afford when your statement comes in, freeing up the rest of your paycheck for other essentials like food, rent, etc.
Predator vs. Creditor
One thing I really don't like about payday loan companies is that they tend to be predatory lenders. Credit card companies, on the other hand, are usually on the up and up. Because of this, I'd rather do business with a credit card company than have my hard-earned money support a predatory lending institution.
Serious Consideration
If you ever find yourself in a cash emergency, check your credit cards before opting for a payday loan. The terms are better, the creditors tend to be more reputable and you will have the luxury of paying off what you can afford each month instead of all at once.