Short-term fast cash loans (payday loans) are more widely available now than they ever have been before. Why the spike in popularity? For those in need of a fast payout direct to their bank account, these payday loans can prove very helpful when you fall a little short. In this article, we’ll look at some of the main differences between payday loans and credits cards. Have a read through if you’re weighing up which of the two solutions would be be best for you.
You don’t need a great credit score for a cash loan
When you apply for a credit card, the first thing the issuer will want to see is your credit score. Have a high enough score and you’ll be offered the card. If your credit score is low, you’ll likely be refused and may only be able to apply for special cards that come with much higher interest rates. Fast cash loans on the other hand, are not based on your credit score.
At Quickle, we specialise in payday loans and all we need to assess your eligibility is your ID and your most recent bank statements. The most important thing for us to check is that you earn enough to pay us back on your next payday, so your credit score doesn’t play a role in the fast cash loan application process.
Payday loans can be paid out within 24 hours
Short-term payday loans are designed to be paid out right away. We encourage people to use them for emergency situations where a fast injection of funds is necessary to cover urgent costs. It’s easy for things to go sightly wrong with home finances now and then, so having a means to access funds in a moments notice can be a life saver. For this reason, we do everything we can to have the money paid directly to your account within hours of approval. Credit cards in contrast, can take many days or even weeks to arrive and become usable.
If time and speed of delivery is a huge priority for you, a fast cash loan will be suitable, whereas applying for a credit card may take far too long. Credit cards take this longer period of time to process mainly because the issuers of these cards have to be sure they check your credit history through third party agencies. There are more barriers for them to cover, so there’s next to no chance of the card turning up the day you apply.
With payday loans, the assessment process can be completed in minutes, which means we can send you an offer and get things moving much faster.
Cards come with set limits
Credit cards have set limits that give you access to more money than you probably need. For example; if you get a credit card that has a $2000 limit, but you only need $500 to solve your cash shortage, you’ll have $1500 sitting and waiting to be spent on the card. Some people are better at avoiding unnecessary spending and saving money, so this factor won’t be so important to them. For those of us that tend to spend more, having spare money on a credit card is not exactly good news.
When you apply for a fast cash payday loan, you can specify the exact amount you need to borrow. So if you only need $500, you should only apply to take exactly $500. This ensures you only take exactly what you need to cover your costs and through to your next payday.
The application process for our payday loans can be completed online or over the phone. If you do it through our website, you can apply for a loan 24 hours a day and anywhere that you have access to the internet. If you prefer to call us and apply by phone, one of our team will be more than happy to help. In the vast majority of cases, the money is available the same day you apply and in the best cases, it can be sent to you within hours of your application.
Those are the key differences between fast cash loans and credit cards. We hope this quick breakdown has helped and that you now have a better idea of which option suits your situation best.
You can read more about fast cash loans in our previous blog post: 4 Things You Need For A Fast Cash Loan In Australia