Should I Choose a Credit card or a Pay Day Loan?

Credit card or a Pay Day Loan
Credit cards and pay day loans are two very common forms of short term credit in this day and age. Of course, both differ in a lot of ways, but they do act as a good way to finance an emergency or to make ends meet when needed. With many people finding problems with their wages and having to meet debts before the next pay check these options can be a great option. So, which is better to use?

Ease of Use

The pay day loan is quite easy to get and can also be a quite substantial sum of money. Getting a pay day loan is often as easy as showing ID in-store in a high street pay day loan shop, or just applying quickly online. In these cases it is possible to have the money in your hand within minutes, even if you have never applied for one before. You will also know whether you have been accepted or not within minutes of applying. Alternatively, if you don’t have a credit card, you will need to apply for one. Though you maybe told whether you are suitable within minutes, you may have to wait a period of time before you receive the card – often up to a week. This can be a bit of negative for those looking for money in a hurry.


Repaying both options is quite easy. In the case of a credit card, there is any number of ways to do so. Users can do so online, by cheque or by electronic transfer. In the case of a pay day loan, much of the same is true and users can repay their loan online, in person or via a number of means. Both credit options offer users a clear schedule of repayments and interest rates. In the case of a pay day loan you will be informed how much interest will accrue to the day it has to be repaid, this gives you an understanding of how much you will need to repay when you are scheduled to do so. And at least unlike bank loans you won’t have to worry about payment protection insurance compensation claims having to be made at a later date.


One of the things we would say is that a payday loan can be a one off and many people needing them irregularly or even as a one off, for one reason or another. Credit cards however are permanently in your wallet and so the temptation is always there to use them for as long as they are valid. Both credit cards and pay day loans can be beneficial in the right scenarios and can come to the rescue. It seems that just like anything, it’s down to the individual’s circumstances to dictate.
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