Wednesday, August 30, 2017

What Makes a Payday Loan Line of Credit Different from a Credit Card?

What Makes a Payday Loan Line of Credit Different from a Credit Card?


Most people use credit cards. They have a place and can be useful for making quick purchases, but there are some serious drawbacks too. An alternative to credit cards is the payday loan line of credit, but to understand why this may be a better choice for you, it’s important to know more about this kind of loan and how it measures up to credit cards.

A Payday Loan Line of Credit is a Flexible Loan


One of the best things about a payday loan line of credit that makes it better than a credit card is that it is a real loan, but it’s one that gives you flexible options. With another kind of loan you have to choose the exact amount of money you want to borrow and take it all at once. With this loan, you get approved for a certain amount, but then you only have to use as much as you need. It gives you flexibility and helps prevent you from getting into debt you can’t afford, something that can happen all too easily with a credit card.

Credit Cards Keep You in Debt, a Payday Loan Line of Credit Won’t


Unlike a credit card, which allows you to spend to your limit and then avoid repaying it for months or even years, a payday loan line of credit is actually a loan. You have to repay it on time. This may seem like a drawback, but it isn’t. Credit card companies want you to pay only the minimum every month. It’s how they make money, but it’s also how you stay in debt indefinitely. You shouldn’t have to carry that burden just to be able to access cash when you need it. With a payday loan line of credit, you get that access without the long-term debt.

See the Cash You Spend—and Save—with a Payday Loan Line of Credit


One way that credit cards get people in trouble is that they are too easy. To spend, all you need to do is pull a card out of your wallet. You don’t see the cash, and studies have proven that when you don’t actually see the cash you’re spending, you will spend more. With a payday loan line of credit, spending is a little more difficult. You have to access the cash through your bank account, but this gives you the opportunity to take cash from your account, see it, and spend it more frugally than you would with a credit card. Overall, you’ll save money.

Get Approved for a Payday Loan Line of Credit, Even with a Low Credit Score


You may get denied for a credit card if your credit history isn’t up to scratch, but with a payday loan line of credit you can get approved even if you have a lower credit score. This is a promise our lenders make because they believe that everyone should have the opportunity to benefit from these great loans and shouldn’t be forced to use credit cards as an only option.

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