Most credit card companies have rules and limits on income, credit score and credit history for people who might use their cards for payday lending, but not this one. You can not receive credit from the credit card company if you are a payday loan borrower. We suggest visiting websites like https://www.sofi.com/credit-card/ to get all the details.
Typically, credit cards are a good idea to use for purchases that you may be unable to make at a cash register. If you are stuck with paying off your account with one-time cash transactions, then a credit card may be a better choice than a standard credit card because it is not liable for your credit score. In the short term, it can have some benefits when used as a general purpose money market account. However, if you are likely to be a payday borrower, then credit cards may not be a good idea at all.
Cash Advance Fees. These fees can range from a few dollars to several thousand dollars, depending on your card’s interest rate. Generally, cash advance fees are charged to the original purchase date of the card and will then be charged to the consumer’s next purchase. These fees may be levied on any amount of money in the account. For example, if a cash advance is charged on a $1,000 transaction, it will be charged on the $1,000 after the first $1,000 transaction. If you pay the bill with the card you just used for payday lending, the fee will be on the amount not previously used to make that purchase. When you get your statement, take a look at your cash advance fee to see if there was a fee.
Cards vs Checking Account
Both cash advance and checking account fees will apply to payday loans and other similar loans. Cash advance fees are often higher than checking account fees. Unlike payday loans, checking accounts come with the same legal protections as credit cards to protect consumers against fraud, theft, and excessive fees and interest. Both of these deposit accounts help to keep track of your money and you can easily access your funds online. For this reason, choosing checking over the credit card is likely the most common choice for many people.
In addition to checking accounts, you should also look for credit cards with no cash advance fee for additional privacy. When choosing between payday loans and other similar loans, it is important to note that payday lenders often take advantage of families who are using loans as a last resort. In addition to having no cash advance fee, these credit cards have no sign up fees. Although, it is possible that some credit card companies may charge a processing fee to process the request, especially if the card company is not part of the lender. Also, while many credit cards are prepaid cards, they do not come with the same restrictive legal protections as prepaid debit cards.
Where to Find the Best Credit Cards for Payday Lending
The main thing to remember when choosing a credit card for payday lending is that you should definitely find one that has no cash advance fees. There is a very good reason that all major credit card companies have policies that allow consumers to keep using their card for any reason. With no cash advance fees, there is less chance that you will be charged by the company if you are a customer. Having a no cash advance fee credit card may seem like a good idea, however, when you are stuck with the debt you already owe, you do not have much of a choice.