Credit Card Instalment Plan Available in Malaysia

Credit card installment plan is also known as easy payment plan. The method lets you use your credit card to make payment for a given amount then repay it in small amounts within a stipulated period. The duration may depend on the credit card issuer or the financial institutions. However, the period is between 3 and 24 months. The credit card is ideal for more significant purchases such as furniture and electrical items. However, there are a couple of things you need to know before you consider credit card installment plan in Malaysia.

How to take advantage of credit card instalment plan available in Malaysia:

Zero interest rate

To take advantage of a credit card installment plan, ensure it gives you 0% interest rate. Depend on the company that offers the credit card and the participating stakeholders; sometimes, one pay ends up paying a one-off payment plus other extra fees associated with this feature. Make sure that you go through the conditions before doing anything else. You may find hidden charges and costs in your purchase.

Only buy from a participating merchants

Before you go to the store to purchase that which you have wanted for a long time, you should ensure that the store is in the participating shop’s list for the credit card’s installment payment plan. Many of installment payment plans are limited to those who are participating, and this may mean usage of installment payment plans are limited to the credit card, which many companies accept.

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Understand the terms and conditions

The same as to other purchases you make with your credit card, you have to be on time when paying your installments. Otherwise, you will face the consequences. For instance, if you do not pay your installment on time, your 0% feature will be retracted without your consent and you will end up paying for the regular interest rates which range from 12 to 18 percent for the remaining balance until you complete your loan.

So, to maximize this feature, you need to discipline yourself and ensure that you do not miss any payments. If you default your payments, you may end up paying up more because of the penalty imposed on your interest rate. Apart from that, individual financial institutions will only let you pay for the 5 percent minimum amount as opposed to the monthly installments. However, it is imperative that you know that if you choose this option, you will still pay for the extra interest for the remaining figure.

When to use a credit card installment payment plan

Electronic devices such as a laptop or a new mobile phone can be costly and can affect your finances big time. Therefore, if you make payment using your credit card, but you cannot pay the amount in full at the end of the period, you will have to pay for the extra interest rate every new month until you finish the remaining balance. Therefore, if you want to upgrade your gadget, or are looking for a new device, you should consider payment plans so that you do not feel like you are paying a lot of money at one time.