3 reasons why credit cards are better than payday loans

Posted on: March, 16th 2020 by: Allie Johnson
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Lenders don’t want you to know this, but here are 3 reasons why CREDIT CARDS are BETTER THAN PAYDAY LOANS

Need money now? Many people who need fast cash are drawn to payday loans because they promise a loan with no credit check and no deposit.

While you can’t get a credit card with no credit check and no deposit, a credit card is still a much better choice in most cases.

Here are 3 reasons why credit cards are better than payday loans:

  1. Payday loans cost you more. A credit card may charge an APR of 35 percent or more if you have bad credit. But a typical payday loan APR can be eight times more: almost 400 percent, according to the U.S. Consumer Financial Protection Bureau.
  2. A payday lender can take your money. When you take out a payday loan, you may write a check dated for after your payday. If you don’t pay the loan before that date, the lender can cash the check and take your money. With a credit card, you have more control.
  3. A payday loan has no credit check. Yes, this sounds like a good thing. But a credit check helps a lender know if you can afford to pay back the loan. For this reason, a payday lender may lend more than you can afford to pay back.

It is definitely possible to get into financial trouble with a credit card. But a payday loan can cost you more and cause more financial problems. If you have a choice, it’s easy: go with a credit card to get the cash you need.

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