Before you splash out on a big-ticket item and use an interest-free credit card instalment plan, know what you’re getting into.
2. The item’s full price counts towards your credit limitWhen you place an instalment plan on your card, your credit limit goes down. That’s because the bank blocks out the full purchase price from your credit limit. Your credit limit goes back up with each instalment payment and is completely restored only when the full payment is made.You’re buying a Macbook Pro for S$1,500, using a credit card with a S$6,000 credit limit.
You don’t feel it because the bank pays the full price for you . The instalments are you repaying the bank for the money they paid up-front. This is a big one to consider, especially if paying in full can get you a decent cashback rate or a sizeable air miles bonus.
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: YahooSG - 🏆 3. / 71 Read more »