5 Best Alternatives To Payday Loans Heading into 2024

3. Credit Card Advance

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Credit card companies often present enticing cash advance options, but it’s crucial to carefully examine the interest rates and terms associated with taking cash advances. Some cards may offer an initial 0% interest rate on cash advances during an introductory period, making it an appealing borrowing option. Essentially, you can repay an existing debt at zero interest. However, it’s imperative to repay the credit card advance in full and on time.

It’s important to note that with many card companies, missing a payment or failing to meet the agreed-upon timeline for repayment can lead to the acceleration of all previously waived interest to zero. This means that instead of benefiting from a 0% interest rate, you may incur a 10% (or higher) interest rate on the entire loan amount.