Sooner or later everyone will experience some kind of financial emergencies at least once. This is the reason why BORROWING money has now become a necessity to individuals. This is especially true to workers whose income may just be enough to cover their day to day expenses. For these types of individuals, there is a limit to where they can access a loan and it is usually their credit card or the popular payday lenders. Taking a PERSONAL LOAN against a CREDIT card or to apply for a PAYDAY LOAN has its positive and negative side. The following may help you analyze where to turn to.
Cash Advance Loan A.K.A. Payday Loan
Cash advance loan known also known as payday loan is a type of credit and are normally easily accessed by individuals who has regular fix income. Payday lenders are commonly available both in the street and online. This therefore makes it easy for cash strapped individuals to gain access to them. The main working of a payday loan is for the lender to lend the money to borrower until the latter’s next payday. Payday loan is usually short term and does not normally go beyond a month. The reason for this is because salaries are usually given at middle and at the end of the month so short term money lenders expects to be paid at the time the borrower receives his salary. Some lenders would prefer a post dated check which could be immediately deposited at the loan’s maturity date. The only requirement for payday loan is the borrower’s proof of income.
Credit Card Advance
Credit card advance is totally different. There is neither processing nor documentations to submit. The Borrower already has the credit card so all he has to do is swipe it (with the assumption that he has a credit card) and the loan come out of the ATM. Cash advance from Credit card can cost more considering that cash loan provided by the same carries a very high interest. Aside from this, it can tremendously increase the cards balance thereby raising the finance charges that it will incur.