Payday loans are short-term loans that have to be paid back during your next paycheck cycle. Credit cards, on the other hand, are a revolving credit line that you don’t have to pay back right away and usually can make a minimum payment towards settling the debt. While some people might suggest that credit cards are thus a better way to finance a shortgap in cash, there are major differences in how easy it is to obtain a credit card versus how you obtain a payday loan.

Credit Cards

In this tough economic climate, even people with prior good credit histories might find they are denied a credit card. It’s a lot tougher to qualify for a credit than in the past and rates are higher, also. Many credit cards are also charging an annual fee to carry the card, regardless of the balance that you hold. If you don’t have a good credit history or you don’t think you will be using the credit card that often, it makes better sense to get a payday loan.

Payday Loans

There are no credit checks for a payday loan. The only qualification is that you need to be employed, even if only part-time, so that you can repay the loan on your next paycheck cycle. Instead of making minimum payments towards the loan, you will have to pay the entire balance. There is the ability to rollover your debt if you can’t repay, but it will cost you  more to do so. The loan is not a line of credit, like a credit card, so once you get the money and repay it, that transaction is done. To get more money you have to apply again for another loan. You can use a payday loan to build up a good repayment credit history as it will show on your credit report.

Popularity: 9%

Incoming search terms for the article:

Related posts:

  1. Special Credit Card for Bad Credit People
  2. Credit Card, Need or Desire
  3. Vjeranpas.com for Your Best Instant Payday Loan

Tagged with: • • • • • • • • • • • • • • • • • • •

Filed under: Credit and Loans

Like this post? Subscribe to my RSS feed and get loads more!