How a Payday Loan Differs from a Credit Card Loan
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.
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