Payday Loans

What Are the Differences Between a Credit Card and a Payday Loan.

No matter how rigorously we plan our financial obligations, there can always be unexpected expenses. Whether it’s a damaged home item, a car repair, a roof leak, medical bills, or just the irresistible temptation to take that dream vacation because plane tickets are on sale. See for further editorial

All of these situations have one thing in common – they require extra money. Some prefer to borrow money from a family member or request a job advance. Both are viable options but often the feasible amounts in this way are not sufficient.

So what should we do in this situation? Find different loan options. There are many varieties of loans out there but the most popular tend to be either a bank card (with or without prepaid credit) or payday loans and quick loans. Both are possible options but in reality they have their differences and they are better for some cases than for others. Let’s take a closer look at each one.

Main characteristics of a credit card

Main characteristics of a credit card

The most notable feature is that it is issued by a bank. However, not everyone can get one. Usually, you need a good financial history as well as stable income. The amount of credit awarded to the card is also related to income – the higher the income, the more money a person can apply for. But the score (the history) is really important in relation to the interest rate you will receive.

The card can be used like a regular bank card. You can have a fixed payment date or a variable payment date.

When the date is fixed, you have to pay the amount of money before a certain date. The card is linked to a bank account from which the money is withdrawn. When there is no money in the account, the interest is paid. With a variable payment date you simply start paying the interest (usually less than the card with a fixed payment date) after a certain date. You yourself can choose when to pay all the money back.

Many of these cards are part of an incentive plan. That means you earn points when you pay with it. These points can then be exchanged for discounts on products or services.

What you should know about a payday loan

What you should know about a personal loan

When you use the bank issued card, you are actually using the bank’s money. When you request payday loans the money is transferred as a single amount to your account and after that transaction it is yours. A payday loan (as well as quick loans) is something you apply for once and when you need more money you have to request it again. You can request any quantity you need – be it big or small. There are many different options out there and it is entirely possible to ask for the amount of money you need at any given time – a good way to avoid overspending.

The great advantage of payday loans is that the payment can be made in installments, divided into months or even years. Often you can choose the payment schedule yourself – the amount you want to pay each month. This ensures that you can maintain your financial stability so that paying off a payday loan will not affect your other financial obligations.

 Which one to prefer – a credit card or a payday loan?

 Which one to prefer - a credit card or a personal loan?

Now that you know the basic information on both options, you may be asking yourself – which one is the best for me?

There is no general rule of thumb which one you should prefer – a commitment to a bank or more comfortable fast loans. This largely depends on the situation you need the money for, your financial history, your financial situation and your obligations.

If you have a large expense approaching and you know something unique is possible, then payday loans may be right for you. You can request the exact amount you need and decide on the payment schedule. This will guarantee a stable financial situation – payment in installments will not affect your other obligations. You will have a clear perspective of how much extra money you will need each month to pay off your loan. Also, there is a set end date – when the loan is paid in full.

This is also a better option if you have problems with self-discipline. With a card, it’s easy to find excuses and spend on whims – buying things you don’t really need. It is always available for you to use. Whereas a payday loan (and also a quick loan) requires an application process and a conscious decision to actually apply for the money. Although the application process is very easy nowadays, it still represents an obstacle between the action of asking for money and receiving it. So it’s a better solution if you tend to give in to your impulses easily.

If you are a person who lives on daily payments and there are cases at the end of the month in which you find yourself short of money, then a credit card is the best for you. You will always have it in your wallet ready to use. If you pay the amounts on the fixed date – usually at the beginning of the next month – you will not lose money in interest.

You will also earn loyalty points that you can use for products or services. For example, some banks also have alliances with airlines – they offer a discount for a certain number of points. Some people even choose to use their card all month to earn points and at the beginning of the following month they simply pay everything. If you have unexpected and urgent expenses, quick loans are also an option worth checking out.

I have decided to opt for a payday loan – how do I get it?

I have decided to opt for a personal loan - how do I get it?

It is important to choose a lender that you can trust and that has a good reputation.

Fine Bank is a company that intermediates loans and you will find a quick and adequate solution for each client, regardless of their financial need. Fine Bank works only with the most trusted lenders on the market. The application process is quick and easy with Fine Bank. Simply provide your name, personal identification number, email, and phone number.

Fine Bank will contact you shortly with the offers and you can choose the most suitable for you. When you have confirmed the offer, the money will be transferred to your account.