How to save money with a credit card instalment plan

You've probably heard about credit card instalment plans. A lot of shops and banks offer them, but are they always a good idea? Or are they too good to be true? Let's take a closer look at the different types of credit instalment plans, how they work, what you could expect to save, and which type is right for you. Let's start with the basics.

1. What is a credit card instalment plan?
2. What are the benefits of a credit card instalment plan?
3. What kinds of credit card instalment plans are there?
4. Want to make a purchase at one of HSBC's preferred merchants?
5. Want to shop somewhere else?
6. Facing an extra high credit card bill?
7. Did you find the credit instalment plan that's right for you?

Normally when you use a credit card to pay for something, it's best if you repay your entire balance as soon as it is due. This will help you avoid any late payment fees and interest charges. And if your card has any special perks or bonuses, you'll be able to take advantage of them when you don't owe anything.

If you're buying something expensive and you don't think you'd be able to pay it off all at once, you do have the option to pay it back over a few months.

The plan breaks down your balance into equal monthly repayments, making it easy to calculate how much you need to set aside each month, and for how long.

Some credit card instalment plans also offer special low-interest rates (or even zero interest) so you can save money while paying back your purchase.

Apply for an HSBC VISA credit card to enjoy 0% interest instalment plans with a sign-up promotion up to VND 1,800,000!

1. Activate your credit card before using an instalment plan: If you haven't activated your credit card yet, you can quickly activate it through HSBC Vietnam App. You can also activate the card by sending an SMS message or reaching out to us for help.
2. Bear in mind your credit card limit: The amount you put on a credit instalment plan will affect your credit card limit, so make sure that your purchase won't go over your card's limit.

There are a few basic different types of credit card instalment plans. We'll explain all of them and compare their differences, or you can just read about the one that applies to you. Which one sounds most like you?

No problem. HSBC offers a 0% Interest Instalment Program when you shop at any of the merchants on the list. Here's what that means. Buy a cellphone? Buy a motorbike? Buy a laptop? All will become much easier than ever and at your fingertips.

Our 0% Interest Instalment Program (IIP) is just what it says: zero-interest. It lets you split the full amount of your purchase into smaller monthly payments with no interest charges.

This offer is available at a lot of major brands, giving you a great chance to save if you're making a big purchase in electronics, technology, health services and even education.

The 0% IIP is relatively straightforward. Unlike other forms of loans, you're not required to provide any identity card, or proof of residence or income.

You just fill out the HSBC 0% Interest Instalment Program application form provided by the vendor and pay using your HSBC credit card. If you're doing online shopping, just be sure to select "Buy on instalment plan by credit card" as your payment option.

Below is an example, you buy a new cellphone valued at VND36 million and register instalment at Thien Hoa Electronics Centre. Your monthly repayment for the cellphone will be:

• 3 months: 12 million VND/ month
• 6 months: 6 million VND/ month
• 9 months: 4 million VND/ month
• 12 months: 3 million VND/ month

If you buy and register instalment at Nguyen Kim Electronics Supermarket, the period will be 6 months. Buy a laptop at Cho Lon Electronics Centre and convert into instalments? Buy a phone at Samsung and convert into instalments? Why not?

Are you ready to register a credit card to own valuable items today? Don't forget special offers from HSBC with a sign-up gift with cash back up to VND 1.8 million!

In case your favourite stores aren't on our list of preferred merchants, no problem. You can still convert your purchase to a 0% Interest Instalment plan for a low fee – as little as 1.99%.

This plan lets you choose how long you'd like to take to pay for your purchase. Just select from a 3-month, 6-month, 9-month or 12-month tenor and the plan will break down your purchase into equal monthly payments, with the conversion fee added to your first month's payment.

Now, let's go through an example, when you buy a motorbike which is priced 30 million VND, and want to convert into instalments, how much should you pay for this motorbike every month?

And that's not just a motorbike, it can be your dream trip to explore countries you want or latest hot product you wish to own. It's just spend freely without worrying about the price.

Don't leave it on your wish list any longer! HSBC credit cards will make those dreams come true. Apply HSBC Visa credit card online now to enjoy special sign-up gift with cash back up to VND 1.8 million!

The 0% IIP is relatively straightforward. Unlike other forms of loans, you're not required to provide any proof of residence or income. You just pay using your HSBC credit card and fill out the online application form. You can even apply by sending us a text message if that's more convenient for you.

Whatever method you choose, we'll get back to you within 2 working days to let you know if your application is successful.

The minimum purchase amount for a 0% IIP is VND 5 million. You can use it for a huge variety of different things at different merchants across the country, but you can't convert things like:

• cash advances
• service or financial charges
• cash instalments
• purchases of casino chips at legal casinos
• e-money transfers and online bill payments for any banking and credit card services, or
• transactions made with other financial institutions.

Find out more about the 0% IIP with low conversion fee.

What if you made some big purchases a while back and are now stuck with a big credit card bill? We can help you with this, too.

Having a high credit card bill can be very stressful. With high interest rates, it can be tough to put a dent in the amount you owe if you are only paying the minimum each month – or worse, missing payments altogether.

If you're facing a high credit card bill, we can help make it easier to pay it off. Talk to us about a Balance Conversion Plan. It lets you convert the amount you owe into affordable monthly payments.

You can apply for a Balance Conversion Plan online, or you can call us and do apply over the phone. You can take up to 12 months to make a full repayment of your converted balance, but you can choose to do it in less time, too.

As with the 0% IIP, you can convert most of your outstanding purchases are allowed, but you can't use it on things like cash advances or casino chips.

In short, a Balance Conversion Plan can help you pay off your credit card bill faster, saving you money on interest and finance charges.

Find out more about our Balance Conversion Plan.

As you now know, the differences between these credit instalment plans are pretty simple:

• If you're planning to make a purchase with one of HSBC's preferred merchants, you can use the 0% Interest Instalment Plan.
• If you're making a purchase from a different retailer, you can convert the purchase to a 0% Interest Instalment Plan for a low conversion fee.
• If you've already made purchases and are faced with a high credit card bill, you can opt for a Balance Conversion Plan.

These services are available for HSBC credit card cardholders. Celebrate your life with HSBC sign-up gift with cash back up to VND 1.8 million!