There is never a good time to overspend on a credit card, but in some cases it’s the best way to secure the funds you need.

For example, if you’re facing a major car repair or medical bill, you may need money in a hurry. While you have many options, some are better than others.

During your search, you may come to believe that a payday loan is the best way to proceed. Not only can you get the cash you need, but there’s no wait period.

Of course, there’s more than what you see on the surface. The primary drawback of a payday loan is the super high interest rate.

Here are three reasons to choose a credit card over a payday loan:

  • Reputable financial institution. With a payday loan, you never know who you’re dealing with. Since reputation and reliability are important when borrowing money, you never want to take a risk. You can be rest assured that your credit card company has a better reputation than any payday lender you come across.
  • Lower interest rate. Even if you have average credit, it’s very likely that the interest rate attached to a credit card will be less than a payday loan. Payday lenders can do pretty much anything they want in regards to terms and conditions, so you really need to be careful about what you’re getting into.
  • Just as convenient. If you already have a credit card, you can quickly use it to deal with anything that comes to light. You don’t have to contact your company, unless you’re interested in a cash advance.

Before you opt for a payday loan take the time to compare the finer details to a credit card. You may come to find that using a credit card is the better way to proceed, thanks in large part to the reasons detailed above.

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