How to improve your shopping experience with installment loans

By
Nicole Si
·
November 10, 2020
How to improve your shopping experience with installment loans

There’s no running away from the need to visit a store once in a while to pick up some necessities or products that you impulsively decide that you can’t live without. Whether you choose to shop online or in brick-and-mortar stores, there are plenty of payment options to accommodate your shopping preferences. You’re probably familiar with the idea of paying by installments, which essentially allows you to complete a payment over the course of a couple of months. Like loans, you have to pay a fixed monthly fee over a predetermined tenure to spread out the expense.

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Purchasing things through installments or layaway is the norm for big-ticket items such as electronics and furniture. Offers from quick cash loan online providers allow for installment options that could cover your desired gadget from Lazada.

Still, some people prefer to use this method of payment for almost every purchase. Seeing money dwindle bit by bit per month instead of choking over a massive hole made by an expensive purchase has become a money-management mechanism that works for certain people.

To a certain degree, layaway payments for gadget installments have become a lifestyle choice, but they’re offered by limited establishments and are sometimes only available to credit cardholders. As a non-credit user, shopping installment loans offer you the opportunity to pay for expensive things at a manageable pace, which can drastically improve your shopping experience. There are a couple of things you need to know before jumping into this payment option.

Interest Rate

Interest rates don’t always matter in the pay-by-installment scheme. For the most part, companies don’t require you to pay an interest rate if you opt to pay in layaway. Products are only slightly more expensive than their upfront value. A wise shopper can always check on the total cost with a calculator. However, you don’t have to worry about paying extra fees, such as processing fees, if you purchase from a store that accepts layaway payments.

The same goes for credit cards. Most credit cards allow you to pay by installments when you transact with partner merchants or establishments. The coverage is much larger–you might find restaurant options, clothing stores, toy stores, and more. You won’t be charged an additional interest rate if you choose to make layaway payments with these establishments.

There are specific installment online loans pilipinas that don’t charge interest, including pera247’s eShoppingLoan. As a result, you can still shop till you drop without having to worry about having to shell out a lump sum on the spot.

You should only be concerned about having to pay an interest rate if:

  1. You are not paying your credit card in full every month.
  2. You don’t commit to your monthly loan payments.
  3. You take a short-term loan to make a specific purchase on layaway.

Once approved for the eShoppingLoan you’re saved from funding your Lazada e-wallet because pera247 will readily pay for the gadget’s full amount.

If you’re sure that you’ll need to take a loan to afford to pay for a high-cost item through installments, then look into an option that provides you with the most flexible terms and lowest interest rates.

Availability

Having access to a wide range of products through layaway is where credit cards truly shine. Depending on your bank, you can have thousands of merchants to choose from, from clothing to electronics and food. On the other hand, shopping installment loans are only limited to a small range of establishments. For instance, pera247’s eShoppingLoan can only be used when shopping on Lazada.

Credit cards and shopping loans have their ups and downs. Ultimately, it all boils down to where you shop the most and whether or not they accept your installment loan of choice.

Accessibility

Shopping installment loans are the obvious choice in the battle of accessibility. Almost anyone can avail of them–all you need is a smartphone, a valid government ID, and access to WiFi or a mobile data network. You also don’t necessarily need a bank account if you choose to take a loan from a moneylender that accepts monthly payments through remittance.

Meanwhile, you need to have a good relationship with a bank, enough income, and a record of non-delinquency to qualify for a credit card. Qualification doesn’t guarantee anything–you’ll likely have to go through a lengthy screening and application process before finding out whether or not you’re worthy of joining the coveted credit train. With all these nuances, it’s a no-brainer that shopping installment loans are a much easier way to get quick relief from lump payments and improve your shopping experience ASAP.

Making Big Purchases

The main purpose of paying by installments is to help you afford big purchases by spreading the cost over time. Regardless of whether you choose to take an installment loan through a credit card or a dedicated shopping loan, you can easily mitigate the cost of big purchases through layaway. Deciding which quick cash loan to opt for is entirely dependent on your shopping preferences.

Lazada offers a wide range of electronics and big-ticket items, making the eShoppingLoan perfect for online shopping fans. But if you’re looking for specific brands not offered by the e-commerce platform, then you may have to use a credit card that supports installment payments with your store of choice. Remember: even a credit card with 2,000 partners might not allow layaway payments in your favorite store, so check before shopping!

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Credit Score

Installment loans are a great way to increase your credit score, especially if you opt to use credit cards. All types of loans can improve or deteriorate your credit standing, depending on how well you make your monthly repayments. But credit cards are more streamlined in that aspect as your transactions directly affect your score. If you’re trying to build a high enough score to qualify for bigger opportunities in the future, then using your credit card is a good idea–even if you choose to pay through layaway.

Is It Better To Pay In Full?

The answer is usually a yes–you can save a significant amount of money by paying upfront and in full. Some companies also offer further discounts if you pay in cash (usually for electronics). But if paying through layaway is your calling, then, by all means, do whatever floats your boat. Nothing beats a stress-free shopping experience where you don’t feel too broke after a trip. Peace of mind is sometimes more valuable than a couple of thousand in savings, after all!

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