Need Money Fast: Personal Loan vs. Credit Card
When you need money fast, there are a couple of options that you can choose to help get immediate funds. Two of those options are a personal loan and a credit card. But which one should you use?
Take a look at the information below to learn which funding option is best when you need money fast.
Need Money Fast Credit Cards
One of these simplest options for getting funds when you need money fast is to use a credit card. Credit cards normally come with a pretty decent credit limit, so if you need to buy a plane ticket or pay a bill, credit cards make it easy for you. The good thing about using a credit card is that you can pay it back over time and the interest rates are a lot less than payday loans.
On the downside, if you don’t already have a credit card, it normally takes a while to receive one in the mail if you are approved for it. There are some credit cards for bad credit out there, but it’s difficult to get one if you’re credit and finances aren’t up to par.
Not only that, but if you are in a situation where you can’t pay the credit card back, the debt that comes from that is severe. Derogatory credit collections can tremendously reduce your credit score and damage the health of your credit.
If you take this route, make sure that is the best option for you.
Need Money Fast Personal Loans
Personal loans are fast cash alternatives when you need money as soon as possible. If you go the standard bank loan route, that might take a while and the approval process is more strenuous than getting a payday loan. A payday loan is usually the better option when you need fast approval and money debited into your account quickly.
However, payday loans usually create a cycle of debt that’s hard to get out of. If you don’t have the money to pay the lender back in full, they’ll add on additional fees and the debt keeps piling on.
Furthermore, these types of personal loan fees are really expensive. You should only choose this option when you need money fast and know that you can pay it off as soon as possible.
Otherwise, you’ll regret choosing this option. Payday loans are generally approved based on your ability to pay them back, so you have to show income verification. If you don’t have a job, you shouldn’t choose this option and you likely won’t get approved for the loan anyway.
To learn more about other payday loan options, read on here.
Need Money Fast? A Simple Solution
As you can see, when you need money fast there are a couple of different options to choose from. Be sure to weigh the pros and cons of each option to make the best decision for your situation.
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