Online Lending vs. Credit Cards – Get the Real Truth

Getting extra cash is not that difficult these days. There are plenty of people and businesses that exist solely to get you to borrow money so that they can make money from you. As a consumer and borrower, you have to be knowledgeable about what your options are, how they stack up to one another, and what makes the most sense for you. One of the biggest battles is between online lending and credit cards. Here’s the final answer on which is better.

Convenience – Online Lending Ties with Credit Cards

Both of these financing options are convenient for borrowers, and that is important. With so many choices for getting extra cash, ease of use is a must have. With credit cards you simply apply, usually through the mail or online, wait to get your card, and then once you have it, just swipe away to spend. With online lending, you go online or use an app, apply, and get cash sent to your account by the next morning for the utmost convenience.

Good Debt – Online Lending Wins

One very important way in which online lending beats credit cards is the type of debt it gives you. There is such a thing as good debt and bad debt. Credit card debt is bad debt because it never goes away. Credit card companies aim to keep you in debt indefinitely to make more on interest charges. With online lending, you get a small loan that you repay in a week or two. You are left debt-free again, and paying it back on time actually helps your credit score.

Avoiding Overspending – Online Lending Wins Again

Another issue with credit cards is that when you spend with plastic, you tend to overspend. There is a psychological element to this that has been proven: when you can’t see the cash, you spend more. With online lending, you get actual cash that you can see and spend. You also have a finite amount of cash that you have borrowed, unlike with a credit card, so you can budget it and spend it as you intended, without going overboard.

Safety – Online Lending Takes the Cake

All those paper applications for credit cards that you get in the mail are a leading way that people open credit cards in another person’s name. It happens all the time, but not with online lending. There is no paper trail because everything is done online with the best encryption software for protection. Online lending is truly safe with a reputable lending service because there is no paper for someone to pick up and misuse, and your information stays with your lender only. No one else gets access to it.

The options for borrowing money are not likely to be limited any time soon. If anything you will be given more options in the future. Understand those options, how they will impact you and your finances, and then make a smart choice, like online lending.

Online Lending vs. Credit Cards – Get the Real Truth By Eric Knapp - 8/9/17

4 Tips for Avoiding Late Fees, Including Online Lending

There are so many ways to waste and lose money, no matter how hard you try to spend wisely and budget. One trap that a lot of people fall into is losing money due to late fees. Paying bills late can get expensive in more than one way. You may pay the late fee now, but pay late often enough and you’ll also pay when your credit score starts to drop. Use these tips to avoid late fees and remember to rely on online lending whenever you need cash to pay the bills.

1. Pay Bills on Time, Even if That Means Using Online Lending

It may sound obvious, but to avoid late fees, pay all your bills on time. It isn’t always easy to do so, but the consequences of not paying on time, especially if you do it often, are serious. It is well worth the effort to do whatever it takes to pay on time. If you can, pay your bills as soon as they come in the mail, the very same day. If you need to wait a few days, place the bill somewhere you can see it or set a notification on your phone so you don’t forget. Even if you need to use online lending to get the cash to pay the bills on time, do it. You won’t regret it.

2. Use Online Banking and Online Lending

If you are still paying bills with paper checks and sending them in the mail, seriously consider making online payments. There is a much shorter delay, so if you do forget a bill you can pay more quickly and still make the due date. It is also easier to stay organized and to keep information about what you owe all in one place. In addition to online banking, you can rely on online lending to provide you with quick and easy cash if you are stuck and just don’t have the money to pay your bills on time.

3. Change Payment Dates if Necessary

Some creditors will allow you to set your payment due date, so it’s worth asking. This means you can set payments to line up with when you get your paycheck, making it more likely that you’ll have the money ready to go for paying your bills on time. This will make it easier for you to avoid late payments and to set and live by an actual budget for your household. Lining up due dates may also help you avoid needing to borrow, but if you do, online lending is still a great option.

4. Avoid Automatic Payments if You Know You Will Need to Use Online Lending

Some people like to rely on automatic payments for bills. This is a great way to avoid forgetting to pay your bills, but it can be a problem if you sometimes run out of cash in your account. If you need to rely on online lending from time to time, using automatic payments may not make sense. Once you get to a point at which you can stop living paycheck to paycheck, you can set up these payments and never have to think about due dates again.

4 Tips for Avoiding Late Fees, Including Online Lending By Heather Wilson - 5/31/17