Digital banking has made it easier than ever to add a virtual credit line to your credit portfolio. If you have a Maya account, for instance, you can apply for Maya Easy Credit on the Maya app. No queuing or paperwork filing required, and you can tap into the extra funds you applied for in a matter of minutes if approved. If you have access to credit cards, however, you might be wondering: what’s the point of opening a virtual credit line?
The answer lies in how both products can work together to give you more flexibility and better control. Here's how a virtual credit line can complement your credit cards and give your finances a real boost.
Extra Financial Cushion
Credit cards are handy for daily spending and small to medium-sized purchases. Let’s say that you have a Maya Black Credit Card, the best credit card in the Philippines for starters, and it has made it quite easy for you to consolidate and track your everyday spending. In addition, using the card gives you peace of mind that your financial details and transactions are protected by world-class security measures at all times. Why apply for a virtual credit line, then?
A virtual credit line like Maya Easy Credit can complement your credit card in case you’re dealing with bigger costs, such as home repair or school fees. It serves as a backup source of funds that you can draw from whenever needed. Having it on hand gives you a greater degree of security and more room to handle larger or unexpected expenses without maxing out your credit cards.
Better Cash Access
While most credit cards allow cash advances, these usually come with high fees and no grace periods. A virtual credit line is a better choice, as it provides easier and cheaper access to cash when you need it. The funds from Maya Easy Credit, for example, can be easily utilized to pay bills, send money to others, or buy things online, just like you would with cash. And because you’re not dealing with hidden cash advance charges, it’s a smarter way to use your financial resources.
Improved Credit Mix
Your credit score isn’t just based on how well you pay your bills. It can also be affected by the types of credit you use. Having both revolving credit (like credit cards) and installment or flexible credit (like a virtual credit line) gives you a better credit mix. This, in turn, can help strengthen your credit profile. If you’re planning to apply for bigger loans down the road, such as a car or housing loan, this variety can work in your favor by showing lenders that you can handle different types of credit responsibly.
Separation of Expenses
Using credit cards for daily transactions makes sense. But for larger or occasional expenses, using your virtual credit line can help keep things organized. This separation of usage helps you monitor where your money is going and makes budgeting more manageable.
For example, you typically count on a no-annual-fee credit card in the Philippines to complete your payments with a tap or swipe. It’s your go-to payment option whenever you’re buying groceries or paying your bills. Now, let’s say that you want to keep your retail spending separate from your essentials so you can keep track of it better. In this case, it’s best to use a different payment method, like Maya Easy Credit, to cover the cost of your online shopping or in-store retail spending..
Boosted Purchasing Power
Having access to both a credit card and a virtual credit line increases your total available credit. This can be especially useful for big purchases or multiple expenses within the same period, like travel bookings, back-to-school shopping, or emergency repairs, without hitting your credit card’s limit. Making smart use of your available credit also means a lower credit utilization ratio, which can positively impact your credit score.
Better Control Over Spending
Because you can use Mya Easy Credit selectively for bigger or planned expenses, you can avoid maxing out your credit card for things that could be better financed differently. This layered approach to spending helps you stay disciplined and in control of your finances. For example, if you’re planning to buy new appliances, it might be wiser to tap into your Maya Easy Credit and leave your card balance available for smaller, recurring needs.
Knowing how to use complementary credit products like credit cards and lines of credit can help you manage your finances with less stress and more confidence. By understanding what each tool offers and using them in the right situations, you can build a more flexible, responsive, and sustainable approach to your financial life. With Maya, accessing and managing both types of credit has never been more convenient.
