Consumers used to turn to credit cards when they needed a quick way to have some extra cash. But the years past have brought with them a change and it is that people now have an alternative choice when it comes to borrowing money. They can now get a cash advance through payday loans. Let us look at how these payday loans are better than credit cards.
One is that these payday advances are very easy to get. If you try to get a credit card, you might have to wait a while before the credit card company will give you their decision because you will need to confirm more than a few information about yourself. If you do get accepted for the card, you will have to wait until it is delivered to your home. This is okay if you are not in a hurry but it can be a pain if you need the cash right away.
Payday loans often do not require documents to be faxed to the lender before you can get approved. The lender might give you a call so they can clarify a few things but usually this would be done in a matter of minutes. After this, the process is done and you can receive the cash in the bank account that you have indicated in as little as one hour. This convenience is the reason why payday loans have gained popularity.
Another thing is that payday loans leave you without any debt on your name as long as you are able to pay the lender when the loan is due. With credit cards, you always have to keep track of your spending and make sure that you pay off the entire balance every month. In case you do not pay it in full, you have to be able to pay the debt off in installments spread over a period of time. You will be charged with interest and other fees as long as this is unpaid.
In case you are not capable of paying off your debt, you accrue more because the interest will keep on going up and it will be very difficult to pay what you owe the credit card companies. This might be something extreme but it is the sad truth for a lot of consumers out there.
When you take out a payday loan, you are given a tight deadline at the end of which you will have to fully repay the loan. You might find this a bit strict but it does help you make sure that you will not incur further debt in the future.
Dealing with payday loan direct lenders only gives you a good solution because you will not be tempted to spend more than you can afford. This is the usual case with credit cards so it is better to stick to payday loans. They are a lot more convenient and you are taking a step towards protecting your credit and your future.