Cash loans versus credit cards. Which is better?

A cash loan is based on proof of employment and income. In most cases, lenders will not run a credit check or use a credit score to qualify applicants. These are ideal loans for bad credit. However, it’s important to understand that a payday advance is one of the most costly loan products available. Interest fees usually range within 300% to 600% or even close to 900%.

A credit card is issued based on your credit history, amount of debt, and ability to make the monthly payments. Like cash loans, credit cards typically have pretty high interest fees. However, if you can qualify to get a credit card- that’s a probably the way to go. Before applying for either product, be sure to shop around and compare rates.

Read more on the Fed’s website for credit cards