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Difference between Payday Loans and Credit Card Cash Advances - #1 Loan Directory in Singapore | Loan Singapore
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Difference between Payday Loans and Credit Card Cash Advances

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If you have been researching on the various credit card advances and the Payday loans in Singapore, you can be confused for a while too. With the different product offering and the new schemes launched every day, the loans are easy to receive in Singapore. Banks, licensed money lenders, and the other loan companies offer a variety of products as required by the consumers. Now let’s discuss the types of Payday loans and credit card advances:

Payday Loans:

They are referred to as short-term loans that allow a person to opt for a loan on the basis of his or her salary. There is a minimum capping also on the amount of loan and that will vary as per the moneylender rules. The payday loans do not require any collateral and they are a tailored product for the borrower’s ability to pay the loans back. Sometimes they can be payback in split payments, but most of the time they do take the payment in a go with the agreed interest. Only the licensed money lenders can provide the Payday loans and the interest rates can also vary accordingly based on the different

Another advantage of the licensed money lenders is that they offer simple policies based on their rates. And the interest is charged on the total amount with zero hidden charges.


What are Credit Card cash advances?

The credit card advances are based on the credit card limit available on your credit card rather than on your monthly or annual income.  A credit card cash advances are more like a purchase that is made through your credit card. But do remember the repayment terms are very strict in nature.

A cash advance on any credit card can offer you a better deal than your Payday loan or may not too. These deals are dependent upon your credit ratings or for how much credit that you qualify for. Some credit card company’s offers high interest on cash advances when compared to the Payday loans which are offered by money lenders.

Cash advance loans get along with the various smooth functioning of credit card bills and are also repaid according to the rules as well. The interest is said to be compounded on a daily basis, and they do require substantial application fees when you request a loan from them. There are hidden charges to which can be asked from you. The hidden charges like to set up fees, late repayment fees, withdrawal fees can be levied. The borrowers are sometimes not aware of talk of them so do ask the question before going forward for the credit card cash advance.

The curry of credit card advances is spoiled by many credit card companies as they require you to pay off all the no- cash advance that you have on your card. This clearly means that you are required to pay the amount which has lower interest fees, but on the other hand, your credit card cash advance amount remains untouched. And moreover the amount gets increased and the compounding interest is calculated on the same as well.

Have you ever received a credit card cheques from some credit card companies in your mailbox? Or any cheques that are offering a higher lump sum to

These are some of the misconceptions that are faced by the people. These cheques should be treated as credit card cash advances by the credit companies and they do have the disadvantages attached to them. Many people feel like them as an easy credit, but they do have multiple charges levied on you if you avail them,

In Singapore, the various credit companies are said to cap the maximum loan amount based on the credit limit of the borrowers. Cash advances do charge the finance or hefty interest charges from the day one of the loans to the completion day, but on the other hand, they do have their advantages as well. Like, you can withdraw easy cash on the credit company’s ATM or you can request the loan to the borrower’s bank account as well. Some credit card companies do offer loan application through phones or SMS.

Do check your amount on your credit card every month. And you can also ask your issuer to explain how the interest rate can be computed. And he will guide you in various tit-bits of the loan.


Outcome and Comparison, Choose your option wisely:

So what is the action that is viable for the borrower, what’s the best possible? At times these Payday Loans can offer you higher interest rates than you have imagined. This phase is due to the money lenders as they face higher risks of not getting repayment on the said date. However, if you are a repeated customer who has maintained a good credit history of repayment. The licensed money lenders can offer a better rate with a good repayment policy for you. You can discuss with your loan officer to provide one of the best policy to you as well.

Undoubtedly Payday loans do offer great flexibility for the various repayment fees, and if the time periods. And if the repayment time periods are a consideration for you then do go for the Payday loans as they are one of the best resorts for you going further. And their best part with Payday loans are they do not offer any kinds of hidden charges. They do allow the people in the lower income to avail the loans, who cannot afford to keep the credit card with them.

Choose your option wisely as which side you want to go for. As these are some of the great options that you should have, so do have a look at them and choose which one suits you well. So do have a look and go forward. We wish a GOODLUCK!!!!