A payday loan is a short-term personal loan that does not require a credit check. It can help you out quickly in a financial emergency, but you shouldn't use it as a long-term loan. There are better deals to be had with other kinds of loans.
Should you take out a cash advance?
If it will help you, then the answer is "yes." Most of the time, the fees for late bills and credit cards add up to more than the fees for a cash advance. NSF and merchant fees add to overdue balances like snow on a roof. So, if the finance fee is less than what you expect to pay in late fees, you might want to take out a payday loan.
In some cases, the costs are more than just the late fees. For example, getting your car fixed can cause you to lose your job. In this case, it's better to pay the fee than to lose your money.
Payday Loan Advantages
The best thing about payday loans is that you can get them quickly. When you apply for a loan online, your application can be approved in minutes, and the money can be in your bank account the next day.
As long as you have a steady income, your credit score won't cause you any trouble. With faxless lenders, you don't even have to worry about getting copies of your pay stubs or bank records.
How To Say "No"
Not everyone with bad credit can get a payday loan. Large purchases or splurges are better put on a credit card with lower interest rates. Even better would be to save each month and pay cash for these things. Even though interest rates may seem small at first, they can add up over time.
If you are having trouble paying for basic things, it would be better to talk to a credit counsellor. They can help you make a monthly budget and come up with ways to manage your money.
Different Credit
Large purchases are better paid for with other kinds of credit. Within days, you can get a credit card. Some offer low rates at the beginning or other perks. A line of credit can also help you pay for big bills at rates that aren't too high. A lender will, however, look at your credit score and other aspects of your finances.
So, if you're thinking about a payday loan, you should look at all your options. Payday loans give you cash quickly and don't check your credit, which can be helpful in a pinch.
