We have several options to choose from when in dire need for cash advances. The two most popular ones are payday advances and credit card cash advances. Which one is better? how payday advances work and why you should choose it over credit card cash advances?
A borrower struggling to make ends meet in between paychecks and lenders willing to loan money so people can stay afloat. One does not need a collateral to be approved. Whether you have good or bad credit, one who has proof of income can easily be qualified for a payday advance. Here’s how payday advances work.
Payday advances, also called payday loans, come from licensed money lenders who require borrowers to pay back the loans on a specific date or dates depending on whether you are required to pay one time in full or in multiple payments
How much you can be approved for really depends a lot on how much you are earning. Most online lenders easily allow around $1,000 and lend more to those who have verifiable higher income.
A payday advance is a quick cash loan that you can use for money emergencies such as rent, utility bills, medical bills, auto repair, and practically for anything under the sun.
Credit Card Cash Advances
You can also draw out cash advances from your credit cards. When you take a cash advance, it is just like when you purchase items and charge it to your card. So, in short, it is just like buying cash.
How you pay your credit card cash advance will just be like how you pay your credit card dues. Take note though that the interest rate for the cash advance you made will be higher for sure.
What Should You Choose?
How payday advances work put it at an advantage. A smart borrower will take a payday advance over a credit card cash advance anytime.
Payday loans or payday advances might have a bad reputation due to high-interest rates. However, this short-term loan requires you to pay it as soon as possible and charges end there. Meanwhile, unless you have the habit of almost paying off your cards during its billing cycle, the interest may build after a while.
Whatever you prefer is still up to you at the end of the day. Just remember, choose wisely.
With payday loans, interest rates might actually be lower next time you borrow. Especially when you are able to prove that you pay on time. Payday advances offer no hidden charges and allow those who have bad credit history and those who cannot get a credit card to avail of much-needed quick cash.
Be it payday advances or credit card cash advance, make sure you only take them when you are really facing a tough financial emergency. For both, make sure you pay on time and soonest that you can.
Of course, if you have better alternatives and can borrow money without interest, such as from family or friends, then you know the answer.
Are you considering payday advances? Find out how payday advances work from our experts at Payday Advances Uncomplicated. Browse through our treasure chest of tips, features, and reviews.