There are a lot of things in life that we desire but can’t have even with a credit card. The price tags of our desires are ready to slap us in the face and bring us back to reality. This is because desirable things aren’t exactly reasonably priced, otherwise they wouldn’t be desirable in the first place. Using a credit card to fulfill our dream purchases isn’t exactly a solution either and why is that, you wonder. This is because, credit cards are borrowed money that charge one of the highest interest rates that are more likely to bankrupt us than help fulfill our dreams if we splurge on them. But do you know everything your credit card has to offer you that you can spin in your favor?
Here are things you must know about instalment payments and what they can do for your credit card dues –
The concept called EMIs or Equated Monthly Instalments
Whether you want to treat yourself with a luxury handbag, electronics, clothes or simply spread your purchases into smaller instalments, you can now do so with different leading banks offering EMI options that can help convert your bills into instalments and reduce your burden of making heavy payments on your credit card bills. SmartPay by UOB, PayLite by OCBC, Citibank Equal Payment Plan, HSBC’s Card Balance Conversion Plan, FlexiPay, EzyPay by Maybank etc. are some examples of how you can use the EMI option on your credit card to reduce your monthly payments.
What purchases you can convert into the EMI option
Many banks have a minimum purchase requirement to convert your purchases into EMIs. Usually, the minimum amount required is SGD 500 that many banks in Singapore offer their EMI options for including OCBC’s PayLite, HSBC’s Card Balance Conversion Plan, UOB’s SmartPay and Maybank’s EzyPay. However, Maybank offers its FlexiPay option for a minimum purchase of SGD 300.
EMI options are available with Interest Free Instalments
Yes, major banks in Singapore offer their EMI plans charging 0% interest. However, note that though no interest may be charged, you may be subjected to a low processing fee when you opt for this plan. UOB’s SmartPay, Maybank’s EzyPay, OCBC’s PayLite and Citibank Equal Payment Plan all provide financial flexibility with 0% interest per annum instalment plans. There are also other banks that provide similar EMI options, call your credit card issuer today and find out about their EMI plans.
Credit Card Instalment Tenures to convert your credit card dues to EMIs
Usually, banks offer instalment tenures of 3 months, 6 months and 12 months to pay your credit card dues using the EMI plans. UOB’s SmartPay, HSBC’s Card Balance Conversion Plan and OCBC’s PayLite provide the 3, 6 and 12 month tenures. Citibank’s Equal Payment Plan provides up to 24 months to pay your credit card dues. Maybank’s FlexiPay offers instalment tenures of 6 months, 12 months and 24 months with low interest and EzyPay with 6 months, 12 months, 18 months, 24 months and 36 months, all interest free.
When to convert your credit card dues into EMIs
Different banks have different date stamps as to when you can convert your purchases or credit card dues into their EMI options. Maybank’s FlexiPay and UOB’s SmartPay require you to convert your applicable credit card purchases within 10 days from the date your credit card statement was issued. HSBC’s Card Balance Conversion Plan allows applications within 14 days from the statement date or 30 days from the transaction posted date, whichever is earlier. OCBC’s PayLite allows for conversion of purchase into EMIs at least 7 working days from the payment due date of your billing statement to convert your purchases into EMIs.
So there you have it! Don’t let your dreams stay dreams on account of your ignorance. Credit Card purchases do not necessarily have to be a nightmare if you use them wisely and converting your flamboyant purchases into available EMI option is a way to use your credit card wisely and responsibly and at the same time, fulfilling your desires whilst maintaining financial stability.