Online Loan vs. Credit Card: What is better for Filipino?

No matter what type it is, any loan can be the best friend for you when you fall into a financial crisis all of a sudden. Be it an online loan or a credit card loan, you are going to get money rapidly and effectively. But choosing between these two types of loans happens to be a daunting task for individuals. 

 With a credit card, you have to repay the money within a concise term. On the other hand, personal online loans will allow you to take quite a long time to refund the money. The interest rate is another significant factor you should consider while choosing the loan type. No matter if it’s an online loan or a credit card loan, you have to make sure that you select the model which comes with lower costs and fees. 

Why Are Fast Loans So Popular?

There is a variety of reasons for the popularity of cash loans nowadays. The reasons mostly revolve around the offers and the conditions that the banks and other lenders organize for businesses and individuals. People are glad to use both online loans and credit cards.Some of the main reasons may include: 

  • Quick Money

    You are likely to borrow the money on the same day you apply for a loan with the cash loan. People who need money for emergency purposes can be benefited by selecting this loan type. 

  • Quick Contract and Agreement

    People who are not fond of going through a lengthy and complicated agreement with a bunch of paperwork can go with cash loans. This type of loan typically ends in a month. 

  • A Substitute for Traditional Loans

    As cash loans come with fewer complications, charges, and fees, people often find them useful for their commercial purposes. 

  • Recession

    There was a time when major financial institutes and banks denied to give out loans to people when the recession took place. In such a situation, payday loans and cash loans backed people up, giving out loans to individuals for various purposes. This is another significant factor that makes cash loan much accessible nowadays. 

 

Comparison of Credit cards and Online loans 

Credit Card Online Loan

Borrower’s documents

You need an ID, сonfirmation of income level as well as confirmation of employment status. You need an ID and some other documents depending on the requirements of the financial institution.

Approval rate of applications

40-45% 75-80%
 How to get You can apply online, but you need to get your card at a bank branch Online without leaving home via the Internet
Service fees Credit card fees include annual fees, financing fees, overage fees and cash disbursement fees

Usually there are no additional charges.

Loan amount

Depends on your income and credit history. The bank determines the size of the limit

Average of 1,000 to 100,000 PHP

Rate of receipt of money

If the limit is not exceeded, the moment you need the money

From 1-2 hours to a few days

Grace period without interest payment Available

Not available

Top popular credit cards in the Philippines in 2020

You can have your entire bank account in your hand by having a credit card. Today, people are doing business online, purchasing goods and services online. Credit cards are incomparable when it comes to making a payment while sitting on the couch at your home. 

However, we are going to demonstrate a few popular credit cards below that have been playing a significant role in the financial market of the Philippines in 2020. 

1. Blue from American Express

If you ask me about the first transparent credit card in the Philippines, I would recommend Blue from American Express. You are not likely to have any complications while shopping online with this card. It comes with a range of offers every year for shopping, dining, and accommodations all over the world.
To become a Blue AMEX owner, you need to be 21-70 years old. Being a Philippine resident, you need to have at least P180,00 as annual income. Go to any BDO branch with the required documents to purchase this card today. 

2. BDO Visa Platinum

Being one of the most classy credit cards in the Philippines, BDO Visa Platinum will provide you with top-notch advantages. You are likely to have free priority pass membership with this card. You can also pay in double currencies.
To get this platinum credit card, you can go to any BDO branch with the required documents, such as the latest ITR and a valid ID. 

3. PNB-PAL Mabuhay MasterCard

Just like the previous ones, you are likely to have a lot of privileges by owning a PNB-PAL Mabuhay World MasterCard. The mile’s conversion is shallow with this card. You are expected to get the advantage of free flights and non-flight treats with it.
To get one of these cards, you have to get the application form, fill up and submit it to the respective PNB branch with your valid ID. 

Credit Cards — How They Work?

Credit card is one of the most utilized payment methods of today, allowing individuals and businesses to make payments from any corner of the world at any time. The drawback of utilizing a credit is that you have to pay a massive amount of interest rate if you don’t pay back the full amount of money. However, you don’t have to repay the total cash at a time. You can repay the money on installments. But, if the interest rate is high, you will have to pay a reasonable sum of interest to your card issuer. 

Online Loans — How They Work?

Sometimes, an online loan will help you much more than credit cards. If you happen to own good credit, you will find convenience with online loans as their interest rates are considerably lower than credit cards. The most significant distinction between online loans and credit cards is that with an online loan you will get all the money in a body, instead of getting a card for several purchases. If your loan’s life lasts months longer, then you will have to repay the money on monthly installments. 

 How to Apply for Online Loan

Unlike traditional loans, online loans come with top-notch convenience and availability of 24-hours a day. People don’t have to go to traditional banks or credit unions to get a loan nowadays. Now you can get to the financial institutions on the internet and borrow money from them within no time. 

An online loan is a loan that conducts all its processes on the internet. You can approach banks, credit unions, and even online money lenders to get such loans. However, online money lenders differ from traditional financial institutions as they don’t come with any physical location. On the other hand, some banks and credit unions want you to fill the form online but conduct the rest of the process physically at their official branch. 

Before getting an online loan, you have to ensure whether you need it or not. There is no need to take some loans for a short-term purpose as short-term online loans come with a huge interest rate. Banks and credit unions are the first places you should go for an online loan. They offer low rates for customers who have been doing business with them for several years. With online money lenders, you are likely to know their interest rate on their website once you find a lender that comes with a reasonable interest rate, as for loan interest. 

At the initial stage, you have to make sure that you can afford to repay the money to the lender. You need to fill up a personal form containing your name, physical address, mobile number, email address, income, social security number, and the amount of money that you want to borrow. After that, the bank or the moneylender will go through research on your credit and background. Checking these doesn’t take much time for online money lenders. 

Once you are approved, they will come up with the loan amount and the interest rate that they offer. Then you have to fill out an agreement letter, approving of the acceptance of the offer. Some loans will want you to provide your payment information as well. 

Verified SEC licensed companies

Cashwagon
(4.11/5) 398 voice

Cashwagon

Guarantee of a loan on a card!

PHP 2000 - 20000
from 10 to 180 days
interest rate
for 0% per day
Robocash
(4,78/5) 1547 voice

Robocash Ph

Receiving money in any way 24/7!

PHP 1000 - 25000
from 7 to 30 days
Online Loans
(4.65/5) 483 voice

Online Loans Pilipinas

Money in your pocket in minutes!

PHP 2000 - 20000
from 7 to 30 days
interest rate
for 1% per day
Money Cat
(4,56/5) 184 voice

Money Cat

Fast, simple and safe

PHP 1 000 - 20 000
from 14 to 28 days
interest rate
for 2,5 per day
Tala
(4,3/5) 357 voice

Tala

Sa Tala, magaan ang hiraman

PHP 1000 - 25000
from 21 to 30 days
interest rate
for 0,5% per day
Easycash
(4,72/5) 521 voice
PHP 5000 - 10000
from 30 to 60 days
interest rate
for 0.8% per day

The Benefits of Online Loan

Online loans are much more beneficial than traditional ones in many aspects. Currently, the youngsters have been admiring this type of loan to a greater extent as online loans are providing a lot of advantages. We are going to demonstrate the top five benefits that you can have by borrowing money through an online loan: 

  1. Availability: Unlike traditional loans, online loans come with reliable customer support. They are always available on their website, working 24 hours a day, seven days a week. 
  2. Convenience: No matter where you are staying or what time it is, you can get your online loan from anywhere at any time. 
  3. Less Hassle: As online loans require straightforward documentation, you are going to have no hassle with it. 
  4. Interest Rate: Banks may ask for a tremendous interest rate for short-term loans, whereas online loans will only offer you a 25% interest rate. 
  5. Quick Process: Everything is done within no time. You don’t have to wait in a line for hours as in case of physical bank loans. It only takes 15 to 20 minutes for you to get the process done. 

What is the difference between a credit card and an online loan?

With an online loan or a personal loan, you have to repay the money on a monthly installment, depending on the life of the loan. Whereas, a credit card is a revolving debt. With this, you cannot borrow money arbitrarily. You can only borrow money based on the amount you spend and pay off each month.

Online Loan or Credit Card? Both variants can be beneficial for individuals for different purposes. After all, both options allow you to borrow money, which you have to repay after a specific period. It all depends on your credit and circumstances, whether an online loan or quick loan would be better for you or the credit card one. Therefore, you have to sit patiently and consider all the factors mentioned above and decide which one would be best for your financial needs.

(4.3/5) 12 voice

Written by | Modified date: Март 05, 2020

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