Payday loans and credit cards are two types of credit that can help you to fill a financial gap.
But what type of credit is best for you? Should you take a payday loan or should you use your credit card?
Both payday loans and credit cards are short term loans which are generally required to be paid within 30 days of issue. No collateral apart from your income is required in order to obtain a payday loan or a credit card. In other words, you will not be required to offer any additional assets as security for these loans. In this regard, payday loans and credit cards may be viewed as relatively easy to obtain and the funds are usually readily available.
In some cases you may need cash for a transaction. One main difference between credit cards and payday loans is that with payday loans you usually obtain cash while with credit cards, you obtain the right to use the card to purchase items without the need for cash.
You may obtain cash from a credit card but it is usually at an additional charge and there is a limit to how much cash you can obtain with your credit card.
Therefore if you really need live cash, a payday loan may be a better choice than a credit card.
With payday loans, each time you need a loan you would need to apply for it. On the other hand, as long as you pay your credit card balances, you will always have credit available without the need to make a new application. So the choice between a payday loan and a credit card largely depends on whether you need cash or whether you need credit and on how quickly you need funds.