Payday Loan vs. Credit Card: Which Is Best For Emergency Cash?

April 20, 2021 | Mason Roberts

Woman choosing between a payday loan vs credit card

Choosing a payday loan vs credit card debt may be the best decision you've ever made with your money. And while many consumers still keep plastic tucked inside their wallets for money emergencies, the trade-off may not be all its worth. According to some financial experts, credit card use may even be responsible for low credit scores and loan denials.

So, how are these two personal funding options the same, and how are they different? In fact, which one is better, and how do you get it? The answers are much simpler than you think, but you'll probably never get this information from a traditional bank.

Payday Loan vs Credit Card: The Similarities

Although these two options are vastly different, let's start by looking at some of their similarities. Here are a few ways that credit cards and payday loans are alike:

  • You get instant access to cash.
  • There's online control over the account.
  • The lender sets the spending limit.
  • Limits are based on your income.
  • Minimal personal information is required.

Both options are a convenient source of instant cash, especially during money emergencies, when unexpected expenses pop up, or when income amounts suddenly change.

Payday Loan vs Credit Card: The Differences

Despite the similarities, a closer look at a payday loan vs credit card debt will reveal many differences. These are just a few of them:

Payday Loans

  • It does not refer to your credit rating for cash approvals.
  • You can apply and receive money on the same day.
  • The repayment plans are structured around your schedule.
  • Payday loans are free to get, with no down payment required.
  • Getting this type of loan does not affect your credit rating.

Credit Cards

  • It uses your credit rating for approvals.
  • There's usually a 3-10 day wait between application and approval.
  • The repayment plans are rigid and generally inflexible.
  • Few options are available to those who can't pay their bill on time.
  • Cardholders can get charged an annual fee to use the service.
  • All credit card activity gets reported to the three major agencies.

While credit cards are readily available and a savvy choice for some consumers, payday loans are much more user-friendly overall. They can also provide quick cash despite the borrower's credit history.

Getting a Payday Loan vs Credit Card: Which Is Easier?

Fortunately, it's easy to get fast funding in today's world. It doesn't even matter if you have perfect credit or not. In fact, both credit cards and payday loans are relatively easy to get. So, which one is easier? Let's find out:

Payday Loans

  • You only need a few pieces of information to get approved.
  • There are live and online agents available to help you with any issues.
  • The online application for a payday loan is short, sweet, and simple.
  • Your money will hit the bank within 24 hours or less.
  • Getting your money direct deposited doesn't cost a thing.

Credit Cards

  • You may need to prove your income, identity, banking habits and provide collateral for approval.
  • Most of the customer service is done through a complex automated system.
  • Credit card applications are often long and tedious to complete.
  • It can take several weeks to receive your new credit card in the mail. Then you have to activate it.
  • Activation of a new credit card may cost a small fee, and it may not be free to replace the card either.

Payday loans are much easier to get than credit cards, especially if you're in a hurry to receive money to make ends meet or avoid bigger problems.

How to Get a Payday Loan vs Credit Card

get a payday loan

You now know that getting a payday loan vs credit card debt is much faster and easier. So, here's how to complete the process from the comfort of your own home:

1. Apply Online for Quicker Processing.

To get the cash loans in SC, go to the Main Page of this website to fill out an online form. It will take you just a few minutes, as it asks for some basic information about you and your vehicle. If you qualify, you could receive as much as $550 on the spot.

2. Get Your Stuff Together.

This is what the payday loan agent will want to see when you get to the office:

      • Your most recent pay stub from work
      • Your driver's license or a government-issued photo ID
      • A blank check from an open checking account in your name

3. Receive Cash with Little Fuss.

Take the money and run...right to the spot that's causing you the most financial trouble. This is your chance to make a major change in your budget.

Apply Today for Your Payday Loan!

If you're looking at a payday loan vs credit card debt, it's obvious which one is the better choice. And if you feel like your financial situation is forcing you to get an emergency cash ASAP, don’t hesitate to apply for South Carolina payday loans to get immediate relief from your current financial hiccups.