Don’t get confused while availing instant cash
Weigh every alternative before making final statement
Undoubtedly there are numerous ways to arrange cash in Canada when someone needs money in unexpected circumstances. But before choosing any single among them one must know similarities, advantages, disadvantages and availability of every alternative. Here is a simple comparison between payday loans and credit cards in Canada.
Payday Loans Canada or Credit Cards – Which One to Choose
Similarities between Short Term Loans and Credit Card
Both are convenient as both are easy and quick to acquire. A credit card allows his owner to pay off for any kind of expenses at any store and shop that accepts it. You just need to sign printed receipt after making purchases. On the other hand, payday loans offer almost instant cash for usage. They follow targeted time of 24 business hours from starting application process to transferring required cash into borrower’s bank account. Thus both options are fast and simple enough.
If we talk about interest rates acquired by them, then we come to know that both resources acquire high interest amounts for their spontaneous availability. In fact if there is even a single dollar is unpaid, interest will be calculated on that too. However, in case of online cash advance loans, deferral charges and additional fees are also implemented. On a whole, interest rate is calculated on total unpaid principal amount.
Know the Differences
There are some differences while accessing cash offered by both resources. Of course payday loans do not issue any card in fact they offer a check of borrowed amount that can be withdrawn and used for outstanding expenses. On the other hand credit card requires electronic verification every time you make purchases with it. They will also send you regular account statement and in case of short term loans you are given a demand letter that you must not fail to pay back. There is one more significant difference between the two that both have different time periods. Credit cards can be lenient to some extent however payday loans follow very strict repayment criteria.
So which should be chosen?
Now you know basic differences and similarities between both payday loans and credit cards, so depending on your requirements and circumstances, it is easy to make a decision. If you want effortless transaction and automated payments then credit card is the option. And in case if you have exceeded credit limit, if you do not have any balance in bank account, and you cannot wait to pay off for outstanding expenses then payday loans is the only option left to be accessed.
But at the end you must be clear with fact that both are debts to be paid later. Thus, choosing one over other may make a slight difference but what affects the most is your financial decision. You must be wise enough to control your expenses. It is still your choice that you want to save money or waste it.
