Many businesses across different industries are struggling because of the continuous spread of COVID-19. It is an unfortunate reality that many Filipinos have lost their source of income because of the pandemic. The latest Social Weather Stations (SWS) survey, released last August 16, 2020, 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 massive problem taking care of their finances and, thus, turns to salary loans and credit cards for extra help. But do you know which is best for your financial situation during this pandemic? 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 develop a brilliant financial plan despite the COVID-19 crisis. 

Salary Loans

Salary Loans are immediate cash loans available for all regular employees seeking 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. Go to our Salary Loan page or download the Vidalia mobile app to apply. 


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 factors that the credit checking agency shall consider. 

Easy Application and Fast Approval

Nowadays, many online lenders offer salary loans. That’s why applying for a loan is much 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 only need the money temporarily.

Fewer Temptations

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


Higher APR

Nowadays, you will need help finding lenders who can provide you with a 0% rate. There’s a chance that you will find competitive rates, but salary loans usually have higher interest rates than credit cards. So, you should only consider using salary loans if you only need a small amount of money to make ends meet. 


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


Instant Payment

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

Lower APR

As mentioned above, credit cards have lower APR if you can repay the borrowed amount to the agreed time limit. Also, you can handle whether you are a new or existing customer because credit card providers will offer promotional rates where you can borrow without dealing with huge interest. 

Balance Transfers

If you are having difficulty making 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. However, you must note that initial rates will also expire eventually. 


More Temptations

Money is hard to earn but easy to spend. Having a credit card is convenient in shopping, but this may also mean that you will need help to resist the temptation, and before you know it, you are already caught in huge trouble. Getting and using a credit card may be a better option if you need to improve your finances. Instead, you should 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 to be able to credit a vast amount of money. After all, credit cards are only designed for smaller purchases. So, if you find 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 has pros and cons. Now, deciding which is best for you is up to 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 straightforward. Just go to our Salary Loan page or download the mobile app!

salary loan