Consider An Advance On Your Credit Card Instead Of A Payday Loan
When our readers hear stories about online lending, they often think more of a payday loan, which is what they are in the truest sense. Yet credit card cash advances are also a way to get fast cash. With this method you take on an advance which needs to be paid back to your creditor. Most often the user plans to purchase something that they don’t need in the long run. These items include a TV, vacation or some other form of entertainment. Those are a fry cry from real financial emergencies like medical bills and car repairs. Much like a direct payday loan, you’re borrowing money at a high interest rates which requires a set payment over a certain amount of time. However, there are some scenarios where borrowing money would be preferable instead of waiting to pre-qualify with a direct payday lender.
A Cash Advance Has A Lower Rate Than A Direct Payday Loan
Each one of these options will leave you with different things to consider. When you work with direct payday lenders, you’re going to have a few different choices when it comes to rates and terms. As you’re using your next paycheck as collateral, you need to stay employed and continue monthly direct deposit. Consider the various payday advance services that are available to you. Check out our list of direct payday loan companies that provide funding. We all think of online lending as a form of borrowing that assists us with short term financial needs. With that, it can also be a problem that lasts for months and even years after the loan was issued. Think about stories you hear where someone takes out a direct lender loan and then loses their job. Now they can no longer make payments with each payday and they default on the loan.
Cash Advances have high interest rates as well.
Another option besides an advance or direct loan is to borrow cash from a friend or neighbor. You will see a lower interest rate than a bank loan or credit union. In fact, most of your friends or family members won’t charge you interest at all. Be careful when borrowing money from people you know. We hear all the time about friends and family members who lost relationships. Often because someone borrowed emergency cash and failed to pay it back. Some people find themselves fighting with family members over a few hundred dollars. Situations like these mentioned above in the minority. But you can never be too careful when dealing with family and finances. While this aspect is not ideal, you can expect a decent interest rate with no fees while working with someone you know. Most people won’t draw up a lending contract when money is borrowed by a friend. That can make things easy and quick, but can also cause problems if the verbal agreement falls apart. In any case it will benefit you and your friend or family member to put together a legal contract for a promissory note. Compare that to working with direct payday lenders where the finance charges will be high.
Consider a payday loan instead of a credit card cash advance if you have bad credit
A large percentage of applicants for direct loans have bad credit and thus aren’t candidates for an advance from a creditor. Most credit card companies will require a decent to good FICO score and that’s out of reach for most applicants who are trying to rebuild credit. Some services exist for those who have bad credit. You can look into a secured card. Also consider a high interest rate card. Finance charges will be high, especially with an online advance. But they won’t even approach what you see with most direct lender loans. Contact your creditor to see if you’re eligible for an online advance. The US Government recommends you read up on your rights as a credit card holder in the US. Credit cards are an easy way to get an item now and pay it back later. Most companies will specify these terms in the contract language. Search for a legitimate company who has the borrowers best interest at hand. Try to avoid an installment loan from a direct lender. With improvement to an applicant’s credit profile they can get on the way to a future bank loan from a credit union. Make sure to use cash advance or direct lender payday loan for something that’s a true financial emergency. Anything else is irresponsible when you factor in the high finance charges from payday loans.