I need at least $300 very quickly. I've never had a credit card. Can I do it this way??

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I need at least $300 very quickly. I've never had a credit card. Can I do it this way??

A credit card will be much cheaper for you in the long run. A typical interest rate on a credit card is 20% APR for someone who has not had credit. The 20% APR is 1.6% per month in interest. A payday loan can charge you as much as 25% per month. For $300, the credit card would charge you 4.80 in interest plus 2% of balance, so the minimum payment would be $10.80. And you can pay the balance off within the next few months once you get your regular paycheck. The payday loan charge would be $300 balance plus $75 in interest for total of $375. If you can't pay the payday loan, they will charge you another 25% of the $375 balance. It would not take long before you owe them double the amount you borrowed.

Having good credit is a necessity in our society. The idea is that you have enough money in the bank to cover all your credit card purchases for that month.



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