Payday Loan vs. Credit Card: Which Should I Use For Unexpected Expenses?

February 4, 2022 | Mason Roberts

payday loans vs credit card

Are you weighing whether to use a payday loan vs credit card to help pay for an unexpected expense? You’re not alone in considering these two options. But deciding which one to use can be a bit tricky since they work very differently.

To better decide whether to go for a Florida payday loan vs credit card, you will want to think about what type of financial emergency the expense falls under. You should also consider your credit, and how time-sensitive the situation is.

Payday Loan Vs Credit Card: What Is The Unexpected Expense?

The type of unexpected expense you are dealing with can influence the type of financial aid you need and may help you decide if a payday loan or credit card is the route for you.

1. Typical Uses Of A Credit Card

For the most part, credit cards are used for financial assistance on a more regular basis. Oftentimes people will use them on trivial purchases to help build up reward points and increase their credit scores. Some people even choose to use their credit cards for nearly every purchase they make.

That is not to say that they won’t come in handy for emergency purchases if your line of credit allows for larger purchases and you have been fiscally responsible. It is just that they are used on a more regular basis rather than on unexpected expenses.

2. Typical Uses Of Florida Payday Loans

Payday loans are quite the opposite when it comes to the situations they are used for. Fast payday loans in Florida are meant to give short-term financial relief for financial emergencies that arise from unexpected expenses. The use of payday loans for everyday purchases that you would otherwise use a credit card for is strongly unrecommended.

The type of unexpected expenses that payday loans are most commonly used for are:

  • Home and auto repairs.
  • Unexpected important travel.
  • Medical Bills.
  • Rent or Utility Bills.

your credit score doesn't matter for a payday loan

Your Credit Score’s Connection To Borrowing Options

When considering getting a payday loan vs credit card, you will certainly want to keep in mind how your credit score will affect your ability to obtain the funds you need.

1. Credit Score And Credit Cards

As mentioned, credit cards can come in handy for emergencies if your line of credit provides you with the funds you need. If not, then applying for a new credit card or asking your current credit card provider to increase your line of credit can be hampered if your credit score doesn’t allow for it.

Seeing as credit cards are used on a more regular basis by the majority of consumers, it would be no surprise if you have more than 30% of your credit line used. Using more than 30% of your available credit can negatively impact your credit score and prevent you from getting approved for new cards or a higher line of credit.

2. Credit Score And Payday Loans

Unlike with credit cards, getting approved for a payday loan isn’t affected by your credit score. Rather than determining how much money you can get access to by evaluating your credit score, it will instead be based on your most recent paystub. For this reason, Payday Loans, Inc. of Florida welcomes customers who have good, bad, or no credit.

Characteristics Of Unexpected Expenses To Consider

1. How Time-Sensitive Are The Unexpected Expenses?

Another aspect to take into consideration is how time-sensitive the unexpected expenses are. With a payday loan, you can find out if you are approved for the loan the same day you apply. You can then get the funds you need the same day or the next business day after applying.

On the other hand, it can take a few days to a couple of weeks to access your credit line if you are approved for a new credit card.

If the unexpected expense isn’t as time-sensitive as needing the funds as soon as possible and allows you time to find out if you’re approved for a credit card, then your financial situation may allow you this course of action.

2. Does Your Unexpected Expense Require Getting A Payday Loan?

If you find that your unexpected expense is time-sensitive, falls under the usual emergency expenses that payday loans are used for, and you simply cannot wait, then you have likely answered the “which should I use” part of this article.

This is when a payday loan might be more fitting for your situation. Fast Payday Loans, Inc. is a Florida payday loan provider that offers payday loans to help you with this type of financial emergency.

getting a payday loan is accessible online

What Do I Need To Qualify For A Payday Loan?

Fast Payday Loans, Inc. can offer you a Florida payday loan at any of the many locations found throughout the state of Florida. All you need to apply is:

  • Driver’s license or Government-issued ID.
  • Most recent paystub.
  • Blank Check from an active banking account.

With these three documents, you can find out if you are approved within 30 minutes of in-person loan process and qualify for anywhere from $100 to $1,000 in a payday loan.

To get started, simply submit a filled-out online payday loan form to have one of our loan representatives contact you to provide further instructions and schedule an appointment with you.

Speak To A Representative Today!

Now that you know the different scenarios that may call for a payday loan vs credit card, you should be ready to get a handle on unexpected expenses and know how to approach such situations.

Get your payday loan process started today by submitting the online inquiry form for a Florida payday loan. One of our loan representatives will be happy to guide you today!