Fast Payday Loans VS. Credit Cards?

When you are caught in a tight financial situation, are pressed with emergency requirements and do not have many places to go searching for funds, also cannot wait for long ; it is often the short term loans or the fast payday loans or the credit card loans which come to your rescue. There are a lot of occasions when people with decent credit score are caught in emergency situations where they need immediate cash. They do not have the time to go in for the bank loans which take time of their own before they disburse you the final amount.

The payday loans and the loans on the credit cards can be availed almost instantly and will really serve your requirements. However, before you make their use, it makes a lot of sense to check on their pros and cons, how they are going to affect your finances and the way you can use them better to suit your requirements.

Before you opt for credit card assistance you need to check if you have a credit card in place. if you do not have a credit card, then this option may not work in your favor at times of crisis. A lot of people get into the act of acquiring a credit card once they face an emergency. Gone are the days when the credit cards were easily available. After the economic crisis and the kind of losses the credit card companies have suffered the process of allotting credit cards has stiffened. Now getting a new credit card may take anywhere between 7days to a month. Credit card companies run a complete credit check on the individuals applying for the same. In a nutshell it means that they are not going to serve your purpose if you want to use them at the time of emergency and need immediate assistance. It is here that the payday loans come a lot handy.

Payday loans are available online too. All one needs to provide the lender is sufficient proof of their income, employment and once they are through with their application submission, they will get the loan approvals and within a day’s time they can find the money wired to their checking account.

Payment of the debts

With credit cards you always have the flexibility of the payments unlike the payday loans where non-payment on the due date may see your interest flying really high. With credit cards, people are often seen to get relaxed on the payments. They often take to simply payoff the minimum due and carry over the debts to the subsequent months this resulting in high interest rates on them. However, with the payday loans delay in the repayments can mean rollover of the bad credit installment loans which would require extra fees and processing charges along with an astronomical rate of interest for the payment.

If you have sufficient credit limit on your credit cards it always makes sense to make optimum utilization of the same. There are a lot of individuals who would use credit cards for trivial matters and end up losing their limit. Try and save the credit limit. You can always take a cash loan on the credit card limit provided you have a substantial value. Although this may attract very high interest rates but given the fact that the cash can be made readily available can be a lot of use to you. There are a lot of situations where even the payday loans cannot offer you sufficient cash and your requirements are way too high. In such circumstances the credit card loans can come to your rescue.

When it comes to taking a loan, no matter what option you select- payday loans or credit card loans, all will depend on the way you take care of the repayments of the same. If you have put in a proper plan to deal with the repayments you will be able to manage them well. A discipline way can make a lot of difference and help you pay off the loans.

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