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It is recurrent to ask which is the best financing alternative when we are faced with an economic emergency or we want to meet objectives that require money that we do not have for its realization. The options in general are two, or the credit card is used to buy paying the expense the following month or a payday loan is requested paid the expenses little by little. It is important to understand that, although the two tools have the purpose of granting greater liquidity to those who use them, their financial characteristics differ among themselves in relation to the available amounts of money, terms, costs, requirements, among others. particular characteristics that make each of them.
Although sometimes, people believe that to acquire a good is better The credit card that loans, it is important to clarify that the latter have a number of advantages that you can notice below when we list the 4 reasons why to ask for a payday loan instead of buying with a credit card.
1. The surcharge for card financing is higher than the financial cost of a payday loan.
In payday loans, interest rates are set lower than those established for purchases with credit cards, this is one of the reasons why the final debt will be less in a loan than in the cards. In addition, in the payday loan the client pays a single interest rate that is proportional to the money requested, instead, the credit card applies two classes of interest, on the one hand, it charges interest for the money that is used and for the other interest is paid for having the rest of the money available for use at any time, that is, it is also paid for the money that is not used. Another factor that increases the cost of credit cards with respect to payday loans, is the fact that many times the cards charge maintenance costs despite not being used by the owner to make a purchase. The costs of the cards can be modified each month while many entities offer payday loans at a fixed rate and a fixed rate.
2. The loans offer larger amounts in better terms.
The cards can be useful when we have to make minor expenses, now, sometimes, where the amount of money we need is considerable, the best option is undoubtedly to request a payday loan because these usually offer larger sums to be repaid in longer terms and as we saw with lower interests.
One of the relevant advantages offered by loans compared to credit cards is to allow the client the possibility of making advanced payments, thus causing a reduction in interest. In addition, whoever wishes to cancel the loan ahead of time, may do so without any inconvenience by paying off the debt in advance, thus shortening the term.
3. If you need cash, better a loan.
Having the available cash allows, on occasions, to better negotiate a cash price for what you want to buy. Speaking of credit cards, we have to say that it is very easy to request an advance with these, then, it is only necessary to go to the ATM, enter the card and select the option to withdraw cash. Now, when one withdraws cash with the credit card, the interest charged is one of the highest in the market, which adds to the fees that banks apply for providing this type of service. In turn, it will never be possible to withdraw the entire quota, since, in most cases, the extraction limit will be thirty percent of it. As we can see, due to their conditions, payday loans are a better alternative when accessing cash to buy.
4. Using a loan to buy the credit card is released.
As is well known, credit cards establish limits that vary according to the financial evaluation they make about each client, so if you buy something valuable with the card, you will be depleting your credit margin making it impossible to use the card in A near future. This is another reason why the payday loan is more advisable when making large expenses and the most useful card for small purchases. Following this advice, you will take advantage of the benefits offered by both tools for payday financing.
Comparator of payday loans online
If after learning the 4 reasons why to ask for a payday loan instead of buying with a credit card , you want to continue with the search for a loan that will help you cover your current financing needs, it will be very useful for you. online comparator, a tool that is available on this page, through which you can obtain a list of the offers that the most prestigious and quality financial institutions in our country have for you.