Credit App vs. Credit Card: What’s the Difference?

Advancements in technology continue to change the way we make transactions.

With the rise of e-commerce, banks and lenders were presented an opportunity to revolutionize the credit industry. Now that economic activity is shifting towards digital, the latest innovations in financial technology have paved the way for cashless forms of lending.

As a result, people now have a wider range of credit options. Unlike before where people were limited to bank loans and credit cards, the entrance of online lenders and credit apps give people more flexibility when they require financial services.

People turn to credit apps and credit cards whenever they require monetary assistance. Due to the benefits and convenience it provides, availing of either option can help you get through a financial dilemma with ease.  But now you may be wondering: How exactly does a credit app differ from a credit card? Both options let you borrow money but their key features may make one option more suitable than the other.

Take a look at this infographic for everything you need to know.

To settle the debate between which lending option is better, the answer actually depends on the kind of situation you’re in.

Just like any other credit facility, credit apps allow quick access to cash while giving you flexibility with the amount you need to borrow. Thanks to its fast approval process, you can borrow a good amount of cash even if you’re applying on short notice. Indeed, credit apps are best used for financial emergencies, but it’s also a great alternative to credit cards in purchasing gadgets and appliances since it allows you to pay in easy installments.

On the other hand, credit cards are very handy when shopping. They also reward you with exciting perks and promos. Sadly, credit cards have stringent requirements. It can be highly difficult to get approved for one, and even if you do, your credit limit may not be as substantial. If you get a credit card, make sure that you are capable of making monthly payments to avoid paying any interest or late fees. Use it strategically and you will definitely get the bang for your buck.

No matter what method you end up using, both can help you fulfill your financial needs if you’re able to use them correctly. Make sure to analyze your current financial condition then take planned steps in order to achieve your financial goals.

Creating a brighter future for Filipinos.

It’s an unfortunate reality that only 31.8% of 70.3 million Filipino adults have accounts in a financial institution. Most citizens do not enjoy the privileges provided by lending companies because they are unable to meet the minimum qualifications for borrowing money.

Due to the ill-effects of poverty, citizens in developing countries like the Philippines are unable to access the services provided by traditional banking and credit providers. In line with the United Nation’s Sustainable Development Goals to alleviate poverty, credit applications such as Cashalo aim to create a financially inclusive nation by giving the public access to monetary assistance.

As of June 2019, the mobile application has already served 1.3 million Filipinos. By stimulating economic activity through digital transactions, the Cashalo app aims to boost the country’s economic growth while giving the underserved and underprivileged a chance to build a brighter future.

For your fast cash needs, install the Cashalo App now!