Borrowing is more than a means of accessing funds. When used responsibly, it can help you pave the way for a healthy financial life. Responsible borrowing can empower you to weather financial emergencies or seize fruitful opportunities, such as starting a business or pursuing higher education. Don’t think of the process as simply filling immediate gaps; instead, imagine that you have a wide arsenal of financial tools you can leverage to move closer to your goals.
Fortunately, the Philippine financial landscape offers a variety of credit solutions to cater to different needs. Each comes with its own set of benefits, requirements, and best-use cases. Whether you’re financing a big-ticket purchase, addressing short-term cash flow challenges, or investing in long-term assets, understanding the nuances of each credit option will help you make informed choices and avoid pitfalls.
At Maya, we recognize the value of tailored financial tools that empower responsible borrowers. In this blog, we’ll explore smart credit solutions you can consider to align your borrowing choices with your financial goals.
Credit Cards
A well-managed credit card won’t just simplify payments but will also add value to your everyday spending. Many credit cards come with benefits such as cashback points, exclusive discounts,, and interest-free repayment periods. They’re thus a versatile and indispensable tool for responsible borrowers. They also provide a safety net for emergencies through features like a credit card cash advance, which allows quick access to funds when needed.
Maya’s Landers Cashback Everywhere Credit Card, a 2-in-1 credit and membership card created in partnership with Landers Superstore, is a premier example of a credit card that can make your money work harder for you. With this card, you can earn up to 5% cashback at Landers, 2% on dining, and 1% on other eligible transactions.* You’ll also enjoy a generous cashback cap of PHP 200,000 a year, which makes the card one of the most competitive choices available in the Philippines today.
Personal Loans
If you find yourself facing a major personal challenge and needing a financial boost, a personal loan can provide just that. Unlike credit cards, personal loans offer lump-sum funding with fixed interest rates and repayment terms. This makes them ideal for planned expenses like education, home renovations, or essential travel.
What makes personal loans particularly appealing is their flexibility—there’s no need to specify how you’ll use the funds. Many banks and digital platforms in the Philippines have also streamlined their application processes for loans, so you can secure competitive rates with minimal paperwork. Now that loans have become more accessible, you won’t be bogged down by unnecessary delays when the need arises.
Buy Now, Pay Later (BNPL)
Picture this: you’ve found the perfect gadget or appliance but would prefer to spread the cost over manageable installments without racking up interest charges. That’s where Buy Now, Pay Later (BNPL) services shine. These programs let you break down your purchases into smaller, scheduled payments, often at minimal interest—provided you pay on time.
BNPL solutions are extremely easy to use, which makes them especially popular for online shopping and in-store purchases. However, they work best when you approach them with discipline. Overextending your finances through multiple BNPL arrangements can quickly lead to challenges, so track your commitments closely.
Salary-Based Loans
Emergencies often don’t wait for payday, but salary-based loans can help bridge the gap. These loans are designed for quick access to cash, typically with minimal documentation and a straightforward application process to your employer. What sets them apart is the convenience of automatic repayments, often deducted directly from your salary, which minimizes the risk of late payments.
While salary-based loans are a great option for immediate needs, you’ll benefit from them the most when you use them sparingly and only for truly urgent situations. Over-reliance can strain your monthly budget, so plan ahead and borrow only what you can comfortably repay.
Asset-Backed Loans
Sometimes, the quickest way to secure cash is to leverage what you already own. Asset-backed loans, such as those that pawnshops offer, allow you to use valuables like jewelry, electronics, or even vehicles as collateral. These loans are ideal for short-term needs since they give you immediate liquidity without requiring a credit check.
The process is simple: you hand over your asset, receive a loan amount based on its assessed value, and reclaim your item once the loan is repaid. However, remember that failing to repay on time may result in forfeiting your collateral. Responsible borrowing will guarantee that you can keep ownership of your assets while meeting financial obligations.
Auto Loans
Owning a vehicle gives you greater mobility for personal or professional pursuits, which can be life-changing. Auto loans make it possible to purchase a car without the need for full upfront payment. These loans typically offer fixed repayment terms and competitive interest rates, making them a practical choice for many.
Before committing to an auto loan, consider factors such as the total loan cost, your repayment capacity, and any additional fees. Do your homework ahead to ensure the loan aligns with your budget and needs; from there, you can enjoy the benefits of vehicle ownership with confidence.
Home Loans
For many, home ownership represents the pinnacle of financial achievement. Home loans, also known as mortgages, are key to making this dream a reality. These long-term loans allow you to spread the cost of a property purchase over several years to make homeownership more accessible.
In the Philippines, institutions like the Pag-IBIG Fund and private banks offer various housing loan options tailored to different income levels. There are loans you can apply for if you’re buying your first home and ones for upgrading to a larger space; in every case, don’t forget to evaluate terms carefully. Interest rates, loan tenure, and down payment requirements vary, so it may benefit you to shop around a bit and look for the right fit for your financial situation.
In the end, a world of opportunities will open for you once you begin to think of borrowing as a means of securing your future. Use credit responsibly, leverage the right solutions, and you’ll get the chance to seize opportunities that align with your aspirations. Ready to take the next step? Apply for the Landers Cashback Everywhere Credit Card from Maya and see how it can add value to your financial journey today.
*Transactions that don’t qualify include: cash in, cash advance, quasi cash purchases, casinos and gambling, fuel, supermarket, pharmaceuticals, utilities, telco, and government.
