Payday Loan vs. Line of Credit vs. Credit Card Cash Advance

Cost: Capped at $14 per $100 borrowed in provinces like Ontario and Saskatchewan (roughly 365% APR equivalent), but that cost is fixed regardless of how quickly you repay within the term. Representative example: a $500 loan over a 62-day term costs $70 to borrow, for a total repayment of $570 — an APR of 82.42%.

Speed: Typically the fastest option — approval and funding can happen the same day, often within hours.

Eligibility: Usually the most accessible for people with limited or damaged credit history, since approval is generally based on income and repayment ability rather than a credit score.

Term: Short — up to 62 days, aligned with a pay cycle.

Cost: Interest rates vary by lender and creditworthiness, often in the range of 8–45% APR, but you only pay interest on the amount you actually draw.

Speed: Slower to set up — approval can take days, and it typically requires a credit check and income verification.

Eligibility: Generally requires reasonable to good credit; harder to access if your credit history is limited or damaged.

Term: Revolving — you can borrow, repay, and borrow again without reapplying, making it better suited to ongoing or unpredictable cash needs.

Cost: Cash advance APRs are usually higher than a card's regular purchase rate — often 20–30%+ — and interest typically starts accruing immediately, with no grace period. Many cards also charge a flat cash advance fee on top.

Speed: Fast if you already have a card with available credit — often instant at an ATM.

Eligibility: Requires an existing credit card with available limit; not an option if you don't already have one.

Term: No fixed term — it becomes part of your card balance until paid off, and can compound if only minimum payments are made.

• → Need cash today and don't have a credit card or line of credit? A payday loan is often the only fast option available, but it's built for a single short gap, not repeated use.
• → Have decent credit and need flexible, ongoing access to funds? A line of credit is usually cheaper over time.
• → Already have a credit card with room on it? A cash advance can work for smaller amounts, but the immediate interest accrual adds up quickly if not repaid fast.