Both credit and debit cards are ideal for making payments without having to carry a cash book or even paper money. They can also be used for making purchases and reservations online or over the phone and for withdrawing cash from ATMs. However, even though they are similar at first, there are many differences between these two cards.
First of all, applying for a debit card is not difficult. All you need to do is open a bank account and require a debit card that will be connected to it. On the other hand, applying for a credit card requires you to have decent credit rating and it requires the card issuer to check your credit score and financial background before you are granted a card.
Pros and cons of credit cards
When you use a debit card, the card is connected to your checking or savings account. Whenever you make a purchase using a debit card, the money is immediately deducted from your bank account. On the other hand, paying by credit card is like using a credit or a loan and it is not connected to a bank account. Read more about pros and cons of credit cards.
The credit card issuer gives you the money ahead, and you are expected to repay the debt within a certain period of time (usually 30 days). If you do not do so, you are also charged an interest. Speaking of interest, none of it is charged when you pay by debit card, because there is no money borrowed. The amount you have on the bank account is available to you to spend by using a debit card.
Credit and debit cards security
When it comes to the aspect of security, it can be said that credit cards are more secure than debit cards. Firstly, credit cards are not considered safe because many of them still use the out-of-date technology. However, if something happens to the card, the users are not considered responsible, because it is not their fault the technology is bad. Secondly, the liability of the card owner in case of fraud is very low. If it happens that your credit card is stolen and the purchase was made through it, you are liable for a max amount of $50. With debit cards, it is different.
They are secure in a way because they have a PIN code, but the security lasts as long as the PIN or even only the card number is not stolen. When it comes to fraud liability, it is very high with debit cards. If your card is stolen and the purchase is made through it (or the money is withdrawn from an ATM), the money is withdrawn directly from your bank account and there is no way you can prove that it was not done by you.
The last aspect to consider is credit rating. When you use credit cards, considering that you always repay the debt on time and in full, it can affect the improvement of your credit rating. With debit cards, since there is no debt but the money is directly taken off your bank account, there is no such opportunity.
There is a lot of data you should be aware of about payday loans, and there is a lot of it I would like to convey to all my readers. But you would understand if I told you that itIs not possible to convey everything in one article only. So I would like to focus on less known things about payday loans, figuring that you have basic knowledge about some more well-known payday loans facts.
Numerous state laws in USA as well as some country laws around the world acknowledge high interest payday loans, and there are rules that are made to guide lenders in respecting boundaries that were set. Those laws limit APR, as well as actions that can be taken against the borrower that doesn’t fulfill their obligations.
But in reality those boundaries that are created by law are working against lenders, due to low caps on APR they are allowed to use. That is why payday lending industry has shifted to underground and illegal lending rather than companies that follow the rules.
The risk for giving those loans to people that are not able to clear all requirements to receive bank loans is high, and small APR doesn’t cover the risk of giving those loans.
Laws limit actions that can be taken against borrowers, which is one more thing that limits the possible profit of the lenders. It is true that courts favour lenders, but that fact doesn’t cover costs those lenders have to pay to the court if they want to force one of the borrowers to repay their loan. In classical above the law and behind the scenes payday lending threats, both oral and physical maintain high loan repayment percentage. Without these tools lenders can’t do anything but plea to the court and hope that will force borrower into fulfilling his obligation.
Due to facts in previous paragraph or two many payday lenders use a variety of tools and instruments to evade small loan laws as well as usury laws. Those laws monitor cash flow and due to that payday lenders have found several ways to sham their transactions. For example, some lenders will make their operations to look like credit services organizations which are unregulated kind of services, and with this they avoid small loan laws. This is of course illegal. Even though these laws exist, there is no strong emphasis on enforcement of those laws.
Many states cut their costs by not placing strong emphasis on these laws, believing that people have common sense and they can recognize payday lending organizations that use over the top interest rates.
At the end the point of payday loan is to trap people in taking them on regular basis. Once you take one payday loan you will have large amount of money to repay once you get your salary. This will force you to take another payday loan to cover the cost of repaying previous one, and this cycle is exactly what payday lenders want. Be smart, and avoid, if you can, taking even one payday loan. Inform yourself about payday loans, and think what you will do.
Credit cards are often considered to be a very tricky method of payment, since many people get too relaxed when the use them and they do not track their expenses regularly. It also happens when they use too many credit cards, so they lose track how much was spent on which of them. However, if you use credit cards responsibly, they can be a great method of payment and ideal financial tool for all your needs.
Just like any other method of payment, they have their advantages and disadvantages. When it comes to their advantages, there certainly are many of them. First of all, with credit cards you are able to purchase everywhere, both in your country and all overseas. Credit cards such as American Express, Visa and Master Card are accepted all over the world, so you need not worry about making purchases or booking flights or accommodation in other countries. They increase and expand your purchasing power, because they are not only used for paying directly at the place of purchase, but you can also use them to pay online or over the phone.
Credit cards can be useful when you need a financial boost because of some unpredicted expenses, such as car repair, healthcare cost or any other unexpected situation.
When you make purchases by credit cards, you are allowed to pay in monthly installments, which makes the purchase much easier and more comfortable. Not only can you repay credit card debt in instalments, but if you repay the debt regularly, there is another benefit – you can build up your credit history and thus raise your credit rating. Some credit cards also have the possibility of collecting point with every purchase, and after collecting a certain amount of points, you can get valuable prizes, such as various discounts or even free airplane tickets.
When it comes to disadvantages of credit cards, there are not so many of them, but there still are some, and they are more dependent on the way the card is used than on the card itself. If they are used irresponsibly and unwisely, they can have certain disadvantages. If you default on the credit card debt repayment, there will be late fees and high interest you will need to pay in addition to the debt, which can altogether be quite expensive.
When you acquire credit card debt which is too high, it can also harm your credit rating. Then, if you use a large number of credit cards, it can be difficult to track your spending, and it is not very welcome in the eyes of lenders. If you do not feel comfortable spending more money than you actually have, then having a credit card may also be a disadvantage for you rather than a convenience. Lastly, another disadvantage of credit cards is that they can be lost or stolen, which can cause a number of problems, and credit card fraud may pose a lot of debt on the original user.
If you are considering applying for a credit card, make sure to check all the conditions of the deal and choose the deal that suits you best. If you use the card responsibly, repay the debt on time, keep track of the expenses and keep the card safe, it should provide you with a range of benefits and it can provide you a positive experience rather than inconvenience.
We usually make commitments that we could barely fulfill. Payday loans might be one of those commitments for many of us. At the time of emergency we end up taking payday loan without thinking or making any plans to pay it back. One mistake that is even bigger than no source of paying it back is not planning to pay it back at all.
The longer the payday loan goes after missing its date; the more the interest rate will be. Here is some solid payday loans information, however even with unsteady income and temporary paychecks there are some ways from which the lender can get rid of the payday loan debt; Before we explore those options; let’s learn about some basic rules that payday companies follow after the missed date:
After a date is missed, the payday companies can rollover the outstanding loan but not more than twice.
A payday company is there to guide the debtors, so in case the borrower is struggling to pay back the loan, the lenders are responsible to provide them with contacts of debt advisors.
The lenders are not allowed to deduct from the debtors account more than twice, unless it has been agreed upon.
The debtors will issue a warning for other financial promotions.
1. Do not take another loan:
There are other options to deal with loan debt but never ever make the grave mistake of paying off one loan with another. It would be like a hole, the more you dig, the more in depth you’ll go. It starts a never –ending borrowing cycle and by the end of it, you’ll be even more in debt than you started out with.
2. Be calm and collected:
It might not help you directly but many people tend to get panicked when they see a bill that they cannot handle. And panic leads people to do many obtuse things. They key to paying the loan back is quick planning and some smart thinking. A panicked mind can do neither.
3. A friend:
A friend in need is a friend indeed. There’s always someone in our life who is patient and understanding, could be a relative or a friend. Borrowing with them to pay off the loan is one of the easiest and best ways. First, they won’t ask for interest. And they would not set a fixed time period for you to pay back. So as soon as you get extra cash. Return it back.
4. Clip some of your expenses:
It will only be for a short period of time, but you’ll need to trim some of your expenses. Not the necessary essentials of life but cut-back on the luxurious items. Track your costs and see where you could have saved money, for example catching the town bus for a month could save you money that gas takes. Or buying a $4 drink is cheaper than making a cup of coffee daily. Save all this money, put it in piggy bank (kids style) and because payday loans are usually less in amount, you’ll be able to pay it back. You’d actually be surprised how little things can save so much money.
5. Start an emergency fund:
Even if you do not own any debt right now, it’s always smart to have an emergency fund, one that you do not touch at any cost. No matter how direly you need it. If it’s not an emergency then that fund is not to be touched. Take out a certain amount from your salary every month. And if you already have one of those, then we can assure you that this is an emergency and you can pay it off with your emergency fund.
6. Another job:
Things will be difficult if you are already taking two jobs, but working one more temporary job can solve your debt problems. Just one paycheck could help you pay off your payday loan debt. You can always leave the job once you got rid of the debt. Or maybe you’ll end up loving this job better than others.
Paying off payday loan is not as difficult as other loans are, because payday loans are usually very less in amount and could be paid off within weeks or a month at most.
Credit cards are often considered as unfavorable means of payment, since people tend to use them irresponsibly, the own too many of cards and they are unable to keep track of the expenses. However, credit cards have a range of positive features, and when they used responsibly they bring the user a lot of benefits. In this article we will give you some reasons why you should a credit card and why it can be a great financial tool.
First of all, many credit cards often a range of rewards, unlike debit cards which offer no rewards whatsoever, or they are insignificant. If you have good credit rating, with credit cards you can get a signup bonus which goes from $50 to $250, sometimes even more. In addition to the signup bonus, every purchase you make with a credit card brings you a certain amount of points. The points are added up, and when they reach a certain amount, they can be used to obtain discounts in various stores or to get gift cards. A certain amount of points may even bring you free airplane tickets. If you are a frequent flyer and you own a credit card approved by the airline you most frequently use, you add up the miles at the rate of one mile per one dollar spent.
After you have added up enough miles, the price of your next airplane ticket can be significantly reduced, or it can even end up being completely free.
Some credit cards offer cash back. This means that you are entitled to earning back 1-5% of each of the purchases you perform by a credit card. Some cards offer even higher percentage of cash back, but you are obliged to in return invest the cash back directly into the investment account.
Paying with credit card allows you a grace period, which is not the case with debit cards where the money is instantly withdrawn from the account. With credit cards, the money remains on your account even after you make a purchase, and it stays there until the time when the credit card bill needs to be paid.
Advantages of credit cards
When it comes to payment card frauds, it is much easier to avoid them if you use a credit card. If it is used fraudulently, you need to notify the credit card company. Since the money is not withdrawn from the account immediately, the credit card company will have enough time to resolve the matter, and you are not obliged to pay for any transactions you did not make.
Another advantage of credit cards is that they are accepted worldwide, so you do not need to worry when you make purchases in other countries. Additionally, you can use credit cards to book a room or a flight online, or to order any kind of goods online from a store overseas, which expands your purchasing power.
If you use a credit card responsibly, pay the installments on time and keep track of your debt, you are entitled to a range of possibilities which were mentioned above. Additionally, you will be able to raise your credit rating, which you may find useful in various situations. Therefore, as long as you are responsible, using a credit card can be a satisfaction rather than a bother. In a video below you can see 10 reasons why to use your credit card.
In the see of payday loan companies, you can’t always know to choose the wright one, there are lot of scams on the market today and not every company is trustworthy, but we are going to present you one of the lieders in this field that got high ranking in 2015 and his practice continued in 2016.
Trusted payday is a web page very easy for usage and has an agreement with 70 various lenders, which will help you get appropriate loan and they will fulfill all your needs regarding a short-term loan. On this web page you can find lenders that will offer you up to 1500 dollars and they don’t seek from costumers to send them any copied documents.
This whole process of application isn’t difficult at all, it’s quite simple and efficient. Within a three minutes you will be able to answer questions about your personal information, employment and banking account. They will review it and approve it within 30 to 40 minutes. Regarding a repayment time, these conditions vary from one lender to another, but they are usually between 14 and 31 days. Once you have been approved for the loan, the amount of money you have chosen will be wired to your checking account. For this action it will take from one hour to one business day.
They will accept your application 24/7 and this is very useful for those people who are busy and don’t have time to apply within regular working hours. If you are in a hurry for a cash and you want instant approval, Trusted PayDay will contact lenders through its platform, but some of them may not be open and their regular time of work could be from 8am to 5pm. So it would be wise to apply within suggested hours. If you apply outside of these hours, it may occur that your application may be rejected. Don’t be discouraged with this action, you will only have to repeat this process the next day between 8am to 5pm when more lenders will be open. You won’t be required to pay any credit checks, so new process will cost you nothing.
They also have excellent customer service, so if you have any doubts you can always contact them. They also provide Frequently Asked Question service, there are more than 20 questions that can be really helpful when payday loan online application is in order.
For their services can be said that they are impeccable, you don’t need tons of paperwork and time in order to receive a payday loan. Everything can be done with in a minutes and in the comfort of your home, you only have to choose the right lender. What really got to us is that they have a direct link to 70 highest lenders with best reputation.
And some of them have best interest rates on the market. This company definitely deserves to be called one of the best payday loan companies in this branch and they got that respect from the costumer. So if you decide to take one of these loans, you won’t make mistake with this company.