Best Interest Rate from 0% p.a. Minimum Amount RM1k Early Termination Fee No Fee
Best Interest Rate from 0% p.a. Minimum Amount RM1k Early Termination Fee No Fee
Best Interest Rate from 0% p.a. Minimum Amount RM500 Early Termination Fee No Fee
Best Interest Rate from 0% p.a. Minimum Amount RM500 Early Termination Fee No Fee
Best Interest Rate from 0% p.a. Minimum Amount RM1k Early Termination Fee No Fee
Best Interest Rate from 0% p.a. Minimum Amount RM150 Early Termination Fee No Fee
Best Interest Rate from 0% p.a. Minimum Amount RM500 Early Termination Fee RM30
Best Interest Rate from 0% p.a. Minimum Amount RM1k Early Termination Fee RM100
Best Interest Rate from 0% p.a. Minimum Amount RM500 Early Termination Fee No Fee
Best Interest Rate from 0% p.a. Minimum Amount RM1k Early Termination Fee No Fee
Best Interest Rate from 0% p.a. Minimum Amount RM500 Early Termination Fee No Fee
Best Interest Rate from 0% p.a. Minimum Amount RM500 Early Termination Fee No Fee
Best Interest Rate from 0% p.a. Minimum Amount RM2k Early Termination Fee No Fee
Best Interest Rate from 0% p.a. Minimum Amount RM1k Early Termination Fee RM50
Best Interest Rate from 0% p.a. Minimum Amount RM500 Early Termination Fee No Fee
Best Interest Rate from 0% p.a. Minimum Amount RM300 Early Termination Fee No Fee
Best Interest Rate from 0% p.a. Minimum Amount RM1k Early Termination Fee No Fee
Best Interest Rate from 0% p.a. Minimum Amount RM500 Early Termination Fee No Fee
Best Interest Rate from 0% p.a. Minimum Amount RM500 Early Termination Fee No Fee
Best Interest Rate from 0% p.a. Minimum Amount RM500 Early Termination Fee RM50
Best Interest Rate from 0% p.a. Minimum Amount RM500 Early Termination Fee RM50
Best Interest Rate from 0.88% p.a. Minimum Amount RM500 Early Termination Fee No Fee
Best Interest Rate from 3% p.a. Minimum Amount RM500 Early Termination Fee RM50
Best Interest Rate from 9% p.a. Minimum Amount RM500 Early Termination Fee No Fee
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Ever caught yourself considering buying something you have been eyeing but are conflicting with your own conscience about whether you want or need it?
Don’t dwell on your indecision for too long, there is an alternative you can explore to make that big-ticket item purchase affordable.
Read on as we will guide you to discover how you can turn that wish list into reality via a credit card easy payment plan.
An easy payment plan (EPP) or also known as a flexi payment plan (FPP) is a credit card instalment plan that allows you to convert your purchase(s) into smaller instalment payments for a fixed period of time.
Normally, when you swipe your credit card on a retail transaction, you have a 20-day interest-free period after the statement is issued to settle the payment in full amount.
After reaching the statement due date you still haven’t made a full payment yet, the bank can slap you with a finance charge of between 15%-18% p.a. on the outstanding balance.
This interest will compound every month until you have cleared up the outstanding balance, which could take months or years. Worst comes to the worst, your credit score will not be impressive too.
Nowadays, most credit cards are equipped with a 0% easy payment plan to make purchases more convenient and affordable for you, regardless of your income group.
Are you not familiar with a credit card instalment plan? Continue reading.
Essentially, a credit card can have 2-3 instalment plans for different purposes. They are:
In a nutshell (or some say, TL;DR)
Convert expensive purchases to cheaper monthly instalments
Transfer outstanding balances from other cards to a new credit card
Like cash advance but repay later, in monthly instalments
Make a minimum retail purchase in a single receipt, or combine multiple purchases to meet the minimum purchase amount
Have a minimum amount you are allowed to transfer to a new credit card and can consolidate up to 5 credit card outstanding debts
Can withdraw cash up to 90% of the credit limit. No paperwork is required
Almost similar to a personal loan interest rate
When enrolling your retail purchase into an EPP, you need to watch out for these features as they may not be universal for all credit cards:
To maximise savings, you want to be repaying the same amount you have swiped without an extra fee or charge being added to it. When looking for an EPP that is offering 0% interest, pay attention to the fine print too; are there any fees that you need to pay upfront?
If repaying a huge amount of credit within a 20-day grace period is unmanageable for you, an EPP gives you the flexibility to stretch the repayment up to 36 months. If you’re lucky, you may get 0% interest on a longer tenure, which gives you a lower monthly commitment.
A bank will usually have a list of participating merchants that are offering 0% instalment plans. If your favourite store is not participating in the 0% EPP program of your credit card, you can still convert the purchase into a flexi pay plan at an interest rate.
This clause is to encourage cardholders to make a minimum repayment on their outstanding balances to avoid getting penalised for missing or late payments. Oftentimes, most banks require full payment of EPP and other credit facilities, on top of the minimum monthly payment of RM50 or 5% of the outstanding balances.
While all instalment payment plans are offered to the principal cardholders, some banks allow purchases made by supplementary cardholders to be combined with the primary ones to convert into an easy payment plan.
Wait, are you still calculating whether to pay in cash or 0% EPP on that wish list item? Now, let’s take a look at an example below:
Salina is a beauty influencer who creates social media content on a weekly basis. With the new iPhone is launching, she wants to upgrade her current smartphone for a better quality video.
This purchase will cost her RM6,000. Which is the best choice of payment for her?
Savings for emergency purposes might have depleted.
Up to 18% p.a. interest rate is charged on the outstanding balance when partial to zero payment is made after a 20-day interest-free period.
0% easy payment plan for 6, 12, 24 or 36 months
Low monthly commitment
Flexible repayment tenure
0% interest rate
Missing a monthly EPP payment will cause the 0% interest rate to be reversed to 18% p.a. by the bank, subject to terms and conditions.
To commit a lower monthly commitment, Salina can choose to repay RM6,000 for up to 36 months at a 0% interest rate.
Had Salina made the purchase with cash or a credit card, it could take her up to 36 months (or more than that) to recover her used-up savings.
We hear that you are ready to go with a 0% easy payment plan on your upcoming purchase, so we have outlined the A to Z of applying a 0% flexi payment plan for you:
Another way you can sign up for an 0% EPP is to do it via SMS or by submitting the application form directly to the bank.
Some banks give you several days after the purchase transaction date to decide if you want to convert them into a flexi instalment plan. The rule of thumb is, don’t throw away the proof of purchase yet.
The amount of your EPP will be drawn from the card’s available credit limit. For example, if you have a credit limit of RM10,000 and want to convert RM6,000 into a 0% instalment plan, you will have a credit balance of RM4,000.
This amount will be your new credit limit on other transactions. Sometimes, when you get too caught up in your spending spree, you may not realise that you are going over the reduced credit limit, which can incur a costly fee.
You may not also want to miss even one monthly payment of your 0% EPP instalment because it can be detrimental to your budget. Banks will strip off that 0% interest when a payment is missed and charge an 18% p.a. until the completion of your EPP tenure.
And last but not least, your credit score will be affected when a missing payment is captured in the system.
Earlier, we mentioned that a credit card issuer can have selected merchants that you can qualify for a 0% instalment plan. Do you know that you can also check if your credit card is participating in the merchants’ 0% easy payment plans? Here are some of them: