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Credit Card Cash Advance or Payday Advance?
People will always have some reason for needing cash that they do not have. It does not always have to be an emergency such as unexpected expenses in between paychecks. It could also be because they want buy big-ticket items or go on a grand holiday. For whatever reason, two of the fastest ways to get funds is through credit card cash advances or payday advances.
Both have its advantages and disadvantages. It all boils down to the borrowers ability to pay. Below is a comparison between the two options:
§ Payday advances have a higher interest rate than cash advances from credit cards. The $10 to $30 finance charge per $100 borrowed may not seem too much to pay at first, especially if the borrower is able to pay off the loan after two weeks. However, if the borrower cannot pay on the deadline, the finance charge is compounded for every week that the loan is unpaid, a rate of increase much faster than for credit cards.
§ Credit card cash advances can take a longer time to pay. The usual practice of credit card companies is to apply payments to any existing balance first before paying off the cash advance itself. Unless the payment is large enough certainly well over the combined minimum payment for the current balance and the cash advance it will take a long time for the borrower to make a dent on his credit card debt.
§ Payday loans have no effect your credit history. Because the terms are quite short and the loan is guaranteed against the borrowers next paycheck, payday advances do not contribute to or detract from your credit score. This is unlike credit card cash advances, which are included in your credit history.
§ Borrowers get cash faster with payday advances than with credit card cash advances. There are usually less requirements, no faxing of documents and credit history checks, making the loan process faster and the loan guaranteed, more or less. On the other hand, credit card cash advances are subject to credit history checks and is not guaranteed.
Based on the pros and cons listed above, fast cash loans, like payday advances, seem to be the better choice over credit card cash advances. However, the borrower has to keep in mind that fast cash loans are short-term loans only and should not be used as a long-term financial solution. It is better only if the loan is sure to be paid on or before the deadline.
If the borrower is not sure that the loan can be paid in two weeks, a credit card cash advance would be better because of the longer period for payment. However, one should not make a cash advance on a card with a large balance or, worse, maxed out. People should avoid maxing out their credit cards because it becomes harder to pay several of these at once. In the end, only the borrower can decide which of the two options payday advance or credit card cash advance is more suitable for the situation.
The Disadvantages of RFID Credit Cards
RFID credit cards are taking the nation. Also known as Radio Frequency Identification, RFID for short, these cards allow you to make purchases with your credit card without even having to type in a pin number, swipe your card through a reader, or even sign for the sale. Instead, a coil radio transmitter insider your cardimagine how small it must be!sends out a tagged radio signature, that then gets transformed by the way you move your finger over the card.
In essence, your personal way of “swiping” your card with your finger gives the signal a distinct “shape” that acts like an electronic fingerprint. In theory, no one else could have this electronic fingerprint. Its not so much theory anymore. Some credit card companies are already experimenting with RFID technology. You can use them at gas stations, convenience stores, maybe even vending machines.
But is this technology as secure as all the experts say it is? It may be, but the thought of not signing for your purchase may make you have the heebie-jeebies. Also, usually with regular credit cards, the cashier is supposed to look at your card and compare signatures, to make sure you are you, each and every time you make a purchase. With RFID cards, you forgo this extra step of security.
Another issue with RFID cards, and one you wont hear the credit card companies make, is that RFID cards make it possible to too easily to spend and drive up your debt. If all a person has to do is wave their card at the fast food restaurant, to get gas, to buy that expensive new flat-screen televisions set, then chances are they may start waving their card more and more. In the long run, that will make a ton more money for the credit card companies. But for the buyer, that could mean a long lifetime of living in debt.
Another potential issue with RFID technology is that it could be the next wave of the future for everything from passports to security to get into buildings. It could be used possibly to even track your movements throughout the day, the week, and the year. Just imagineyour car, every building that you enter into, your house, your workall of them have RFID security technology. That makes for a chance for Big Brother to keep an eye on you. A scary thought, and pretty far-fetched, yes, but a possible reality none the less thanks to RFID.