One of the useful benefits of having a credit card is its installment plan scheme. This credit card feature gives you financial flexibility since you do not have to pay your credit card balance in full. Hence, you can allot more on your other expenses.
Many credit cards in the market, such as hsbc red mastercard offer this kind of card feature. You just have to make time to do research and compare several credit card providers to find card that offers this type of payment scheme.
Before you swipe your card and use that installment plan, here's everything you need to know about this credit card feature.
- What is installment plan?
Credit card installment plan enables cardholders to enjoy repaying their credit card balance in piece over the course of months or years, depending on the installment period you choose.
- How it works?
Credit card installment plan allows you to spread your payment for your purchase into 12 to 24 months, depending on the term you choose. Card issuer will set a minimum amount you need to pay for a certain period of time.
Although some establishments may accept credit card payment, not all stores accept installment plan payment. So, before you swipe your card, check if the merchant accepts installment plan payment.
- How to avail installment plan?
As mentioned above, not all merchants accept installment pay even if you have a credit card suited for it. To avail this card benefit, you have to look for signs on retail stores and merchants that accept this kind of card payment. You can also look at your card provider’s site to identify the list of participating stores that offers this type of payment scheme. Then, before swiping your card, check the terms and conditions that you may need to observe to enjoy the benefit. Here are some:
- The type of items that can be purchased under installment plan
- The minimum amount you need to purchase to be eligible for the payment scheme.
- The length of the installment period you choose
- Extra charges or fees you may need to pay
- When is the best time to use a credit card installment plan?
Just like when using your credit card, not all items are recommended to pay in installment. There are certain items or purchases that you should not back up with an installment plan. Here are some examples:
- Items that are more than your credit limit
- Products or services that you can’t afford when paying cash
Also, make sure that you are using 0% installment plan so that you can save money and not derail your finances.
- Final Thoughts
There is no single credit card that’s right for everyone. This is why there are a lot of comparison website to help consumers choose the best credit card for their needs.
If you do not want to pay in full amount, pick a credit card that has an installment plan benefit just like hsbc gold visa cash back. This will enable you to maximize your budget carefully.
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