Payday Loans vs Credit Cards.
Payday Loans vs Credit Cards
Q. Which is better? A cash advance from your credit company or a payday loan?
The largest factor influencing the use of credit cards and payday loans are the interest rates that are applied to them.
A credit card is an ongoing equity line used to make purchases of any amount up to your credit card limit. Most online advances are similar to if you bought an item with the card. You’ll end up paying high finance charges especially if a large amount of time lapses from when you first bought the item. However, some credit card companies charge higher interest on cash advances than that of standard purchases, such as a daily rate compared to that of an annual rate. That’s why you need to take into consideration your longterm financial well being when you make instant purchases. may in fact end up costing more in interest over a longer term than that of a short term payday loan despite the difference of interest rates between the two.