Credit cards are an excellent way to earn rewards and you can even use them for a quick cash advance. That means you can avoid a payday loan if you have good credit and an available card. Most people run into issues where they can’t improve their credit score. You may know payday loans are risky when stacked up against a low interest installment loan. When you use a credit card at the ATM to get a cash advance you’re going to have higher finance charges. A Las Vegas bank may change he rules on how you determine a credit balance. The problem is that bad credit cash advances are easy to get. Your bank might set you up with a debit card, but it’s tough to get approved for a low interest payday loan. Some companies might send you a booklet of courtesy checks to use for purchases. The problem is that cash advances are not the same as swiping your card, which can get you into trouble.
Cash Advance Fees
Most companies charge a flat fee for an online bad credit cash advance. Often this is usually around three percent of the total cash you withdraw. For example, if you write an online check for $900.00 on your credit card account, your bank will likely charge you an extra $27.00 for the convenience. This doesn’t sound like a terrible price to pay for obtaining cash when you need it, but those charges can add up fast. Compare those charges to what you see from a Nevada payday loan company. Local lenders in Las Vegas and Henderson will typically bring loan amounts of over $300 to the table. Most applicants can afford these monthly payments, but it gets difficult when you factor in the daily finance rates for someone with bad credit.
Know The Payday Loan Rates in Nevada
The average payday loan fee is less than what you see with an online installment loan. While the US Government has recently issued lending guidelines for personal loans, we don’t know of any for online advances. The APR on that cash will likely be higher than your standard interest rate. For example, one of the credit cards in my wallet carries a 9.9% fixed APR with a 25-day grace period on all purchases. Look at that low rate versus a payday loan percentage which will be well over 30%. If I were to use it for cash, I would be charged an interest rate of 29.9% with no grace period. This is a significant difference, and is likely to change how I use my card. If you don’t read the fine print, however, you might not know about this discrepancy between online lenders and local payday loan companies in metro Las Vegas.
Payment Terms and Length
Many online companies in Southern Nevada use a hierarchy for their customers who need a payday loan and live in Las Vegas. Most often this isn’t usually beneficial to the consumer who takes out an online loan. We also know of those in Reno and Henderson, NV that have limits on local lenders. Payments you make for payday loans are automatically applied to the purchases with the lowest interest rate. Spend $500.00 by swiping your card and another $500.00 as an online advance, you’ll be paying off the largest amount first. So those with bad credit need to look at short term loans or work to improve their credit score with free resources. Under this policy, the balance will stay at 30% even if you send a $500 payment to your credit card company. Pay the higher interest rate with even if you obtained the cash advance before making the other purchases.
Look Into Alternate Lending Options
You have other methods available if you need to get your hands on same day cash. A credit card is your only available option with decent rates but you can also look into a personal loan. Consider ways to minimize the risks of putting yourself in financial jeopardy with a Nevada payday loan service. By getting an online payday loan you must consider the full amount due. Try to make plans to pay off the entire balance of your loan as soon as it is due. You can also apply for a personal loan from your bank and avoid the card entirely. Favorable interest rates are often given to consumers with high credit scores. You won’t be penalized when you use that cash for whatever emergency has transpired. Most bad credit loans will come with tough conditions for those in Nevada. Try to find different financial resources and avoid payday loans Las Vegas unless you have run out of cash.