Payday Loans vs. Credit Cards: Which is Available to You?

The economic recession has forced many individuals – including those who have jobs and earn a regular income – to approach borrowing and basic household financial management differently from just a few years ago.

In part, this is because lending rules by banks and credit card issuers have become more stringent. New rules are being developed, in cooperation with credit card companies, by the Department for Business Innovation and Skills, the BIS. The individual consumer should be aware of the options that are currently available to them:

• Individuals with a good credit score are most eligible for credit cards at the best (lowest) interest rate charges.
• Individuals who are new to personal finance and who lack a credit history – basically, young people just out of school and beginning to work – might qualify for “credit repair cards.”
• Persons who find that credit cards are not available to them but who are employed are eligible for payday loans.

Depending on your credit history, choose the option that works best for you when you’re faced with a need for immediate credit.

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