Why Salary Advances Are Better Than Credit Cards

Highlight: A Salary advance can be a better option when considering a short-term loan for emergency purposes instead of swiping a credit card, which in comparison is expensive.

Meeting with an unexpected event or emergency can be frustrating when you are out of savings or you did not plan your finances in advance. However, sometimes your savings are not enough to meet these unexpected situations. The question is, how would you approach such a situation? A personal loan? Well, the minimum tenure of personal loans is 12 months. So personal loans are out of the question. Credit cards? That calls for high interest rates. 

The best option at hand is a salary advance loan, which is essentially an urgent cash loan that works far superior to credit cards in many ways. Earlier, a conventional salary advance was the domain of employers to pay their employees a portion of their salary in advance. However, with the advent of online lending institutions, it is no longer the case. If you are a salaried employee, you can easily opt for an instant loan in India online via Fibe platform and pay back the advance in easy installments with low-interest rates.

Salary advance loans are grants against your salary, and the loan amount is proportional to your salary amount and can also be in multiples of the same. There are so many benefits of salary advances over credit cards. 

If we talk about credit cards, the interest rates are high. It can become an exceedingly frustrating burden if you use credit cards for emergencies and cannot pay back the credit amount on time, such as paying hospital bills, making bill payments, or using it for other purchases. 

Benefits of using salary advance loans over credit cards

There are many benefits of instant loans or salary advance loans over credit cards. We are going to list down the most prominent ones and why salary advances are better than credit cards. 

1. Flexibility to opt for salary advances – When you think about choosing a loan option, a lot of paperwork might come to your mind. But it is not the case with salary advance loans. With great apps like Fibe, you can opt for salary advance loans with minimal requirements and filling out an application. 
2. Low-interest rates – The most important benefit of using a salary advance loan is the low interest rate. If you encounter an unexpected situation such as paying the medical bills or making any purchase, a salary advance will be the right choice. You get low-interest rates and easy repayment options. On the other hand, credit cards will require you to pay off the credit every month, and if you are unable to pay back the credit on time, it can have a negative impact on your credit score. 
3. Easy repayment in installments – Credit cards may sound simple and an easy way to go through all your small expenditures, but they have relatively high rates of interest. If you don’t pay off the debt in time, you will be looking at a recurring rate of interest, which might double your debt. Salary advances are the best option considering easy repayment options in small instalments within a tenure of 3-12 months. In most cases, the salary advance loan is deducted from your future payslips making the repayment even easier.
4. Improves your overall credit score – Good credit score is the requirement for you to be eligible to apply for big loans. Any traditional loan requires a credit score of 750 or above. Many individuals struggle to improve their credit scores due to not being able to pay their credit dues on time. This is where salary advance loans come in place, which can improve your overall credit score. Borrowing and subsequently paying off the credit can help you improve your overall creditworthiness. 

Conclusion 

Salary advance loans from Fibe can be the ideal option for fast and easy cash transfers and more manageable repayment options. On the other hand, credit cards can be a liability if you are unable to make credit payments on time, which can also lower your credit score. The choice is obvious!

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