Sometimes life can have unexpected expenses that pop up when you least expect them, and unfortunately for some people these times may be in between paycheques, when your bank account is not looking as bulging as you would like.
These circumstances include family emergencies, utility bills, car breakdown, and many other problems that may cause immediate concern due to a lack of funds. In his type of situation, it may be advisable to look into the use of credit cards versus payday loans. Both have advantages and disadvantages, which is why only you can decide which is right for you.
One reason that many people turn to payday loans over credit cards for temporary purchases is because they can be easier to receive and do not require a credit check.
When you apply for a payday loan, the only factor that most lending organizations look at is the amount that a person receives as a normal salary over a one to three month period, and then makes a decision from there. These types of loans are usually received via a debit card account and are due upon the next paycheque in full.
The advantage of this is great for those that have a less than stellar credit history, since your actual credit history does not play a role in the lending decision as it does with applying for a credit card.
So, even if your credit score is dismal, as long as you are employed and can show proof of employment you can be eligible to receive a payday loan that can help tide you over and meet a sudden expense that you may not have been expecting.
These types of loans can also be offered to a business that needs quick access to funds that can be repayable within a certain time frame from a business account.
Outside of the exclusion of a credit score, many people prefer lending from a payday loan source in the case of a sudden financial emergency; due to the fact that a credit card takes time to apply for and to receive in the post.
Therefore, even if approved for the credit card and a source of additional funding, it can take time to receive the actual card in the pos, which may not be helpful in a situation in which cash is needed right away
However, credit cards can carry lower APR’s with them in the long run over payday loans, although they are not able to offer the same timely response. Thus, before choosing if a credit card of payday loan is the best choice for you it is important to assess how much time you will need to receive emergency funds in and the viability of approval for any source of lending based on your current credit score. There are options in front of you when an emergency arises, but it is up to you to determine what your safest move is.
