In an ideal world, we would be able to buy whatever we wanted and not accumulate any debt at all!
But the real world is far from ideal, so we can be grateful for small mercies like credit card instalment payment plans that make big purchases more affordable. Most of these plans, while touted as 0% interest plans, have high processing fees and don’t allow you to earn rewards on purchases that you decide to convert into instalments.
Which is why the OCBC Cashflo Credit Card seems like a godsend. Purchases are automatically converted to instalments and you also earn cash rebates on these purchases. Essentially, you get to enjoy the best of both worlds.
OCBC Cashflo Credit Card Review: Free Auto Instalments + 1% Rebates
Who is the OCBC Cashflo Credit Card for?
- People whose monthly income may not be sufficient for big-ticket purchases.
- People who charge certain corporate expenses to their card and have to wait for a while before they are reimbursed for their spends.
- Those who don’t have a substantial nest egg to dip into in case of emergencies.
Top features of the OCBC Cashflo Credit Card
- Automatically convert purchases into 0% interest instalments.
- Pay for 3 months when you spend below S$1,000.
- Pay for 6 months when you make purchases of S$1,000 and above.
- Earn up to 1% rebate on your monthly bill
Managing your finances has never been easier
OCBC’s Cashflo Card is a play on the word cash flow – a financial term that is used to represent the amount of cash that flows in or out of an account during a fixed period of time. A positive cash flow means that you have enough money to pay your expenses and not be in debt.
This is exactly what the Cashflo Card tries to achieve. The built-in 0% instalment payment plan automatically converts purchases above the ‘trigger amount’ that you have specified in your application, to 3-month instalments (if you spend below S$1,000) and 6-month instalments (if you spend S$1,000 and above).
So, if you’ve made a purchase of S$6,000, then splitting it over 6 months of S$1,000 each is way more manageable than paying the entire amount. Moreover, you won’t struggle with making the payment, hence reducing your chances of carrying a balance to the next month.
When should you use the OCBC Cashflo Card?
Let’s assume that you have just signed up for a gym membership and personal trainer package costing $7,200 in total. You could pay with a miles credit card, and get 1.2 miles/dollar (assuming you had a DBS Altitude Card), or use your Citi Rewards and get 7,500 points, or use the OCBC Cashflo Card.
We would prefer to go with the OCBC Cashflo Card, simply because it lets us pay S$1,200 each month over 6 months, and we get a $12 rebate monthly.
Using a miles card could be a viable option too, as the miles earned is worth more than the S$72 cash rebate. However, it’s up to you to decide how much you might need the spare cash and if you can afford to pay the lump sum all at once.
Remember though, when you make payments with the OCBC Cashflo Card, the full amount is deducted from your credit limit, and will gradually revert to the original amount as your pay back your instalments.
Almost all banks offer 0% instalment plans, so what makes this different?
Let’s be honest, not all of us read the fine print when we sign up for an instalment payment plan (IPP). But what you may miss out on if you don’t read these details are:
- Most IPPs will charge you a one-time processing fee ranging from 1% to 5% depending on the bank. However, the OCBC Cashflo Card doesn’t charge a processing fee to convert your purchases to instalments.
- You don’t earn any rewards for purchases that you have converted into instalments with other cards. But with the Cashflo Card, your purchases can earn up to 1% cash rebate (with a cap at S$100)
What other benefits does the OCBC Cashflo Credit Card offer?
The OCBC Cashflo Card lets you stretch your payments and gives you more control over your money, which is a great benefit on its own. But there are other benefits that you get by using this card or any OCBC credit card:
- Discounted rates at Cathay Cineplexes and Reebonz.
- Travel privileges such as discounts on bookings made on Emirates and Hotels.com.
- OCBC’s standard suite of benefits which include discounts on dining, retail, entertainment, and more.
Here’s our verdict
The OCBC Cashflo Credit Card is a unique card in Singapore. It’s one of the few cards that offer instalments at 0% with no processing fee, and probably the only credit card designed to automatically convert large purchases into instalments.
The key benefit of the card is to help manage your cash flow, while giving you a small amount of cash rebate. The cash rebate is hardly going to make an impact on your savings, but if you are also using the OCBC 360 Account, your instalment payments are counted as per of the credit card spend required to earn the additional 0.3% interest on your monthly account balance.
All in all, the OCBC Cashflo Card can be potentially useful. But if you are actually looking to earn substantial rewards on your credit card purchases, this won’t be the card for you.
Want to find reviews of other popular OCBC cards?
- OCBC Titanium Rewards Card Review: The Best Miles Card For Shopping
- OCBC Plus! Visa Card Review: 7% Rebate At FairPrice and more