There are many reasons Filipinos are still iffy about applying and getting a credit card. In fact, some may not even be qualified to begin with.

Requirements like certificate of employment or income tax return abound applicants, but they can be tricky to acquire because not all applicants are employed to have a stable source of income (in the case of students or stay-at-home parents) or have garnered a favorable credit score.

Millennials, for one, aren’t keen on dealing with a rigid payment structure, the hassle of applying for and paying high-interest credit, or banking institutions that aren’t trustworthy.

In this technologically-driven generation, there are now more alternatives to credit cards to choose from.

Enjoy the perks of a credit card minus the difficulties.

1. Reloadable Prepaid Card

Much like the prepaid card you use for your phone, this has a specific value; thus, the amount that can be used is limited to how much is loaded into it. This means that you can’t rack up debt with this card.

Both banks and non-banking institutions offer prepaid cards that can be applied online or on its branches or partner retailers including BDO, BPI, EastWest Bank, PSBank, UnionBank, GCash.

PayMaya, Smart Money, and YAZZ Card. Reloading options include over-the-counter deposit, ATM, online, mobile app, and many more.

Use this card for cashless payments when you purchase offline or online, especially since some cards can be linked to a PayPal account. It can also be used to withdraw from ATM, pay bills, transfer money, or reload prepaid to your phone.

2. Secured Credit Card

A secured credit card can be used to fix your credit. If a prepaid card’s value is based on the amount loaded into it, a secured card’s value depends on the collateral or the amount on your bank account, which imposes better financial discipline to you.

However, a credit limit of 80% to 95% of the amount is required and the deposit should be kept for over a year to maintain the card. The bank will convert your secured credit card to a regular one after 12 months. Any missed payment would be deducted from your bank account.

Banks like AUB, BPI, Metrobank, RCBC, and Security Bank offer secured credit card applications, which require opening a deposit account if you don’t have one yet. And since this is basically a credit card, it can be used like a regular card for various transactions.

3. Debit Card

A debit card is usually given to checking account holders since using it automatically credits the amount to the linked account. It is a more efficient form of paying for things cashless, especially since it imposes a limit on you depending on your current balance.

Millennials especially enjoy using debit cards for online and offline purchases because of its flexibility that other cash cards do not offer. Having a debit card also comes in handy with all the innovations in payment processing and credit industry today, as having a checking account that can be linked to an app or program makes the process more streamlined.

4. Electronic Wallets

Electronic wallets are applications that can be installed on your device. These wallets house information of your cash, debit, prepaid, or credit cards, so you won’t have to carry them everywhere. It also allows you to transfer funds to and from other people.

The most popular e-wallets in the country are GCash and Smart Money, but other banks and establishments have all came out with their own version of this technology.

5. Online Loaning

A rather uncommon but not novel idea is online loaning. Online loans are a good alternative to credit cards thanks to its quick application (only calls for proof of income and billing, bank account details, and one valid ID), approval, and cash disbursement (you can receive the money within 24 hours).

In addition, lenders won’t need collateral, so you can apply for a loan when you have an urgent need like an emergency, hospitalization, or bills payment. The downside to all of these benefits, though, is that some online lending companies offer high-interest rates (usually 5%–20%), low loanable amounts (starting at Php1,000), and short payment terms.

Find the smartest option before settling for an online lender in your time of need—Cashalo has more affordable and competitive fixed rates (as low as 2.95%) with a repayment term of 15 to 45 days compared to other online loan providers.

Take advantage of these technological innovations for your financial need.

Before you apply for yet another credit card, download the Cashalo app now to learn how you can avail of a loan when you need it.