Tag Archives: faster

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 borrower’s 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 borrower’s 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 pro’s and con’s 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.

Direct Lenders for Payday Loans

With the industry growing larger all the time so do your options as a customer. One such option is to seek direct lenders for payday loans.

Indirect lenders work by sending your application to a number of companies they work with until they get the first approval. This allows them to guarantee they’ll give you a loan and many say this allows them to respond faster because you get your cash from whomever responds first. A lot of customers are uncomfortable however not knowing who is seeing their application information or knowing where their money is actually coming from. Also many say indirect lending companies have higher fees because you pay both parties involved.

Direct lenders for payday loans involve fewer people. Less people see your application which makes many customers more comfortable. As you only pay one company with your fees the fees are often cheaper with these companies. Many companies claim that because you deal directly with them and they don’t have to send applications out and wait for responses that they are faster.

If you are concerned with time and your loan, as many customers are, you can usually find same day for either kind of company on this account so I wouldn’t let that effect your decision too much.

Luckily these days there are so many companies you can make a list of the important options you want in order of priority: direct lender, same day, no fax, and of course, the lowest fees you can find. These are just a few of the available options, if there is some particular need you have, like no credit check, I feel confident telling you there will be a company out there for your situation.

Make sure that whatever you decide you’ll be able to pay back on the agreed date. Often customers overestimate what they’ll be able to do with their budget and end up in a cycle borrowing money repeatedly until they owe astronomical amounts.

For keeping your information safe and keeping fees low, look for direct lenders for payday loans.