Every now and then, we’ll have to make large purchases that are either unplanned or that we don’t wish to pay upfront for. It could be a broken washing machine, an unexpected surgery, or your own wedding.
An interest-free instalment payment plan makes the large purchase more palatable and easier to manage. Credit cards that offer 0% instalment plans are common and many don’t even charge an admin fee.
However, you will need to remember that in most cases, converting your purchases to instalments mean that you don’t get cashback or reward points. There are some credit cards that are exceptions to this rule though. That’s what we’ll be looking at today.
Get the best of both worlds with these credit cards that continue to reward you for instalment plan payments.
Standard Chartered Bank Credit Cards
Unlike most credit cards, Standard Chartered credit cards explicitly promote the fact that you can opt for a 0% interest instalment plan and still continue to earn cashback or rewards. Regardless of whether you own a Standard Chartered Visa Infinite, Unlimited Cashback Card or Spree Credit Card, there are no fees to use the instalment payment plans for up to 36 months and earn rewards/cashback.
OCBC Cashflo Card
The OCBC Cashflo Card (full review here) is an interesting credit card in that it creates automatic instalment plans for purchases above S$100. Not only are these instalments automatic, but it’s also free and you can get to enjoy cash rebates of up to 1% on the monthly bill.
For example, if you bought S$7,200 piano and decided to use the OCBC Cashflo Card for the purchase, the bill would be split into 6 months, and the monthly bill of S$1,200 would enjoy a rebate of 1%.
Furthermore, your monthly instalment amount counts toward the ‘credit card spend’ requirement for the OCBC 360 Account. Not only do you get up to 1% rebate on the spend but you can also earn bonus interest on your savings.
Drawback: This method works perfectly if you’re happy with just 3-6 months of instalments. However, if you wish to stretch your payments over 12 or even 24 months, you’ll have to use a different credit card.
HSBC Revolution Card
If you’ve been reading this blog, you’d probably know that the HSBC Revolution card (full review here) gives you 5X Rewards on online, dining and entertainment spend. What you may not have realized, is that embedded in the T&Cs, this card also gives you 5X Rewards for instalment payment plans for purchases within these three categories. You’ll earn 5 points for every dollar spent on the monthly instalments (not the full purchase amount).
Drawback: I was initially thinking that I can easily put this benefit to good use for purchases on Lazada, Apple or even Courts online. But it turns out that none of these places offer 0% IPP for HSBC cards. So if you really want to use your HSBC Revolution Card at these places, you may have to get an instalment plan from HSBC directly. Bear in mind that it could involve a processing fee.
Whenever possible, it’s a good idea to pay for your purchases in full so that you can earn miles/rewards/cashback from it. But at times, having cashflow is more important. When that happens, we recommend trying to get additional benefits out of your instalments using the credit cards above.
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