A lot of businesses across different industries are struggling because of the continuous spread of COVID-19. It is a very sad reality that many Filipinos have lost their source of income because of the pandemic. In the latest Social Weather Stations (SWS) survey, released last August 16, 2020, it was revealed that adult joblessness in the Philippines reached 45.5% in July. This means that over 27.3 million Filipinos have lost their jobs amidst the health crisis.

As heartwrenching as it is, the remaining workforce who managed to keep their jobs is having a huge problem in taking care of their finances and thus, turns to salary loans and credit cards for extra help. But during this time of the pandemic, do you know which of the two is best for your financial situation? So to assist you a little, here’s a list of the pros and cons of using salary loans and credit cards to help you come up with a smart financial plan despite the COVID-19 crisis. 

Salary Loans

Salary Loans are immediate cash loans available for all regular employees seeking for urgent financial support. Whether you need money for emergencies like car repair, family expenses or bills, getting a salary loan is one of the best ways to answer your problem. 

At Vidalia Lending Corp., we offer a low, fixed-rate salary loan which you can pay in 2-12 months terms. Just go to our Salary Loan page or download the Vidalia mobile app to apply. 

PROS
Fixed Interest Rates

With salary loans, you can borrow a fixed amount of money with fixed-interest rates. The interest rates may vary depending on the lending company and other several factors that the credit checking agency shall take into consideration. 

Easy Application and Fast Approval

Nowadays, many online lenders offer salary loans. That’s why applying for a loan is a lot easier and faster today. Thus, if you ever need fast cash for your electricity bills, rent, food costs, or medical bills, loans are often a better option when you need the money for a temporary basis only.

Fewer Temptations

Since salary loans will be given to you in a lump sum, you will most likely use it for emergency cash needs only. With credit cards, there’s a possibility that you will be tempted to use it for other unnecessary expenses that are not included in your budget. Salary loans will let you at least keep track of where you really use your borrowed money. 

CONS
Higher APR

Nowadays, you will not be able to find lenders who can provide you with a 0% rate. There’s a chance that you will find competitive rates but all in all, salary loans usually have higher interest rates than credit cards. So, you should only consider using salary loans if you are only be needing a small amount of money to make ends meet. 

CREDIT CARDS

Getting a credit card will vary depending on several factors. The key to having low to 0% rate cards is to have good employment and credit history. If you know that you still have an existing large amount of debt, you should not really put your expectations too high.

PROS
Instant Payment

If you are expecting money after a month or two, using a credit card for shopping is a great option for you. Even if you do not have a regular income, as long as you have a business or anything that will provide you some money for repayment, a credit card can definitely be your lifeline. 

Lower APR

Like what has been mentioned above, credit cards have lower APR, as long as you are able to repay the amount you borrowed to the agreed time limit. Also, whether you are a new or existing customer, you do not have to worry because credit card providers will offer you promotional rates where you can borrow without dealing with huge interests. 

Balance Transfers

If you are having a hard time making your ends meet and repaying your debt, using a credit card to transfer existing debt can make your overall payments at least a little smaller each month. Although you have to take note that initial rates will also expire eventually. 

CONS
More Temptations

Money is hard to earn but really easy to spend. Having a credit card is really convenient in shopping but this may also mean that it will also be difficult for you to resist the temptation and before you know it, you are already caught in very big trouble. If you are one of those people who’s not good at keeping track of your finances, then getting and using a credit card may not be the best option for you. Instead, you might want to use an app or a tool to check your statements regularly. 

Smaller Loan Amounts

If you are a new credit cardholder, you should not expect that you will be able to credit a huge amount of money. After all, credit cards are only designed for smaller purchases. So if you found yourself in a very tight situation because of the COVID-19 crisis, a credit card is less likely to help you. 

Using a salary loan or a credit card both have its own pros and cons. Now, it is for you to decide which one is best for you. However, if you have decided to get a salary loan, know that Vidalia Lending Corp. is always here for you. The loan application is very easy. Just go to our Salary Loan page or download the mobile app!

salary loan