Getting a Payday Loan vs. Using a Credit Card

Getting a Payday Loan vs. Using a Credit Card

There are plenty of borrowing options to consider, so you don’t want to rush into a decision that you’ll regret in the future. A lot of people turn to their credit cards when they need to spend money they don’t have, but it’s not always the best option. A payday loan is an alternative solution that you should strongly consider. This article will outline some of the differences between these two borrowing options. The more you learn about your choices, the better off you will be.

Borrowing Amounts

If you already have a credit card, you probably know that you have a borrowing limit and what it is. You may be able to borrow more with a payday loan, but it all depends on your income. One of the reasons payday loans have exploded in popularity is because they are so flexible. You could borrow hundreds of pounds more with a payday loan than a credit card. Take the time to compare your credit card limit with the maximum amount you can borrow using a payday loan. This will help you with making the right decision.

Interest Rates

Credit cards are certainly known for having ridiculously high interest rates, which can cost you a lot of money in a very short amount of time. While payday loans can also come with hefty rates, there are lots of great deals to be had.

It is important that you take enough time to compare payday loan rates so you can get a truly amazing deal. Chances are you will be able to find a private lender that can give you a lower rate than any credit card issuer. This can help you save a ton of money when you need to borrow funds.

Convenience

Most people love the convenience of using a credit card, but you may not know just how easy it is to obtain a payday loan. Getting this type of loan can be done entirely online. You won’t even have to leave your home to borrow money this way, especially if you use an online lender like Omacl. All you need to do is fill out an application online and wait for a reply. If your application is approved, the money will be electronically sent right to your bank account. It is by far the easiest and most convenient type of loan you can get. There are also numerous brick-and-mortar payday loan businesses throughout the UK, but doing it online is a much faster and easier way to go.

Flexibility

The fact is that most payday loan lenders are far more flexible than pretty much all credit card issuers. If you are struggling with making a credit card payment, you probably won’t be able to get much help. Those who need assistance with paying back a payday loan can usually get the lender to work with them.

You will have to spend some time looking for the right lender to borrow from though. Make sure that you choose a licensed lender who is highly reputable. You can learn a lot about these private lending businesses by doing some quick research online. There are lots of websites with reviews of these lenders that can help you make the best overall choice.

Fees

There are some very steep fees you’ll incur when using your credit card withdraw cash. These fees vary depending on the card, but they usually cost a ton. While it’s true that payday loans also come with fees, they are generally more affordable than credit card cash advances.

Take some time to compare the fees with both of these options before you make a decision. This research can potentially save you a huge sum of money in the end. Any reputable private lender who gives out payday loans should provide you with this information upon request.

Paying Back Your Loan

It is generally a lot more difficult to pay back a cash advance from a credit card than a payday loan. The consequences for missing a single payment on a credit card also tend to be far more serious. You will have to take this into consideration when you are trying to choose the right borrowing solution to match your needs.

A credit card can be a great thing to have in your wallet, but it’s not always the best option when you need money fast. Payday loans have been proven to be a very effective and helpful means of obtaining quick cash for many people in the UK. You will want to factor in all of this information before deciding what to do. Taking out a payday loan can be done in as little as one business day. You also won’t have to use any collateral, and there are plenty of reputable lenders to choose from on the internet.

8 Tips for Protecting Yourself When Obtaining a Payday Loan

8 Tips for Protecting Yourself When Obtaining a Payday Loan

Anyone who is thinking about applying to get a payday loan needs to know how to protect themselves. Despite the plethora of benefits that payday loans offer, there are still a lot of things that can go wrong if you aren’t careful. In this article we will cover some of the most effective ways to prevent common issues that some borrowers experience. This information will allow you to get the money you need without any hassle or aggravation whatsoever.

  1. Compare Interest Rates

If you don’t take at least some time to compare interest rates from various lenders, you will almost certainly end up paying too much for your loan. This is one mistake that is incredibly easy to avoid with just a couple hours of research. Simply get some basic information from a few different lenders so that you can save yourself as much money as possible. The interest rate you get will ultimately determine how much you spend on the loan as a whole.

  • Only Borrow from Licensed Lenders

Look for a licensed online private lender to get your payday loan from. You also need to pay close attention to each lender’s website. Look for lenders with secure sites so you know that your personal details will be protected. You can always tell if a site is secure by checking for the “https” before the URL. This will essentially tell you whether or not the lender is reputable on at least a basic level.

  • Learn About ALL of the Fees Before Borrowing

You also need to learn about all of the different fees that each lender charges before deciding to borrow from one in particular. This will help you avoid any unpleasant surprises later on. Most people get so focused on their interest rate that they forget about all of the other fees involved in getting this type of loan. You also need to consider late fees, the origination fee and others.

  • Avoid Guaranteed Approval Lenders

No private lender can honestly promise approval for every single person who submits an application, so keep that in mind. There is no reputable lender that will ever advertise this. The fact is that some people who apply for these loans get denied for various reasons. Your chances of getting a payday loan are pretty good, but it’s never really certain.

  • Check Your Finances

You also have to make a point of checking your finances before filling out a payday loan application. You need to make sure that you can actually pay back all of the money you borrow on time. By doing this you will reduce your chances of defaulting on the loan, which can damage your credit in a way that will take a long time to recover from. You shouldn’t simply assume that you can pay it back, because that is how you get yourself in big trouble.

  • Know the Terms

The specific terms of the payday loan you take out will be important to say the least. This is why you will have to read over the loan contract before signing. It gives you all the details you need on the loan, such as the duration (how long you have to pay it back), the total amount including fees, and everything else. You don’t want to skip over any of these things because of how crucial each one of them is.

  • Negotiate

Another good tip for protecting yourself and getting a great payday loan deal is to negotiate with the lender. If your application is approved, you should try to get the lender to bend at least a little bit on some of the terms. Maybe they can lower the interest rate or waive certain fees to help you save money. They aren’t going to simply offer these things, so you have to ask. You might be surprised at what you can do with some simple negotiation. Just remember not to overplay your hand by asking for too much.

  • Set Up Automatic Repayment

Make sure that you set up automatic repayment with your lender so that your payday loan is instantly repaid on the due date. This will prevent any issues with late payment due to forgetting. The last thing you want is to incur a lot of additional fees simply because you forgot to pay back the money when it was due.

Getting a payday loan can be very helpful when you find yourself in a tight spot financially, but you still need to think things out carefully before going forward. This research will allow you to borrow the money you need without any complications. It is a great borrowing option that works well for most people, but you must consider these things first.