Cash, Credit Or Third-party Financing: Which Payment Method Should You Use?


Want that gadget fast?

With the amount of new gadgets coming out today, many of you are already probably thinking of how to finance your next shiny gadget that you’re going to buy this Christmas. There’s a couple of possible ways that you can get your new gadgets, but we’re going to be talking about the three most common ones nowadays, at least in the traditional stomping grounds of buyers: malls. In malls like SM Megamall, you pay for your stuff via cash, credit card or via a third-party financing options like Home Credit, which is possibly the newest option available to the uncarded masses.

Option 1: CASH

Ah yes, cold hard cash. It’s the preferred payment method of most of us, and personally it’s the best since you don’t get roped into payment schemes with high interest rates. Having cash on hand also means you get slightly better pricing from merchants, who typically put a higher price on their goods when you opt to pay via credit card. Managing your costs are also easier when you’re paying with cash, because simply put: no cash, no gadget. You don’t overspend more than your budget allows, which makes debt management easier.


Credit cards are great for those purchases that are a little higher than you’re able to afford at the moment. In a practical sense, carrying a single plastic card than wads of Php 1000 bills to grab that new flagship is way easier and more convenient, not to mention safer. Even better, credit card companies typically run great promotions during the holidays where they offer 0% interest for a set number of months, which makes them a great option when buying gadgets if you don’t want to deplete your cash in one go.

There are a few cons with credit cards though. If you’re an impulsive buyer, it’s very easy for your debt to balloon without you noticing. Getting approved for a credit card is also a little more difficult for the average pinoy, which is the reason why there’s still a lot of Filipinos that don’t have credit cards to this date.

Option 3: Third-party financing via Home Credit or similar companies

If you can’t pay enough cash up-front for a gadget and don’t have a credit card, there’s still a third option to turn to if you’re still lusting for that phone. Third-party financing companies like Home Credit give consumers a way to pay for any appliance or gadget via regular monthly payments, and it’s pretty easy to be approved by them. There’s tons of them already in the malls, and they’ll work with you with a payment plan for your gadget. 

The downside is that since Home Credit and its ilk are taking on a far higher risk than say, credit cards in terms of their clientele, their interest rates can be a little high. Low amounts like a Php 8,000 cash loan is not too bad, with an interest rate of Php 4.99% for 8 months, but like everything costs scale depending on overall price of the item. Third-party financing companies are also more rigorous when it comes to collecting since again their userbase carries a higher amount of risk, so expect that as well when you start shopping.

Looking to buy the best phone for you? Why not check out our top picks for every price range below:

Best Phones For Q4 2017: Flagships

Best Phones For Q4 2017: Php 20K to 30K

Best Phones For Q4 2017: 10K to 20K

Best Phones For Q4 2017: 10K below



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