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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.

What is a credit card instalment plan?

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.

With a credit card instalment plan, you can choose how long you want to take to pay off your balance, for example: 6, 12 or 24 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 3,200,000 VND!

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A few important details

  1. Activate your credit card before using an instalment plan: If you haven't activated your card yet and you're not sure how to do it, you can reach 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.

What are the benefits of a credit card instalment plan?

Whether it's shopping online or in stores, you can use a credit card instalment plan to enjoy flexible payment options and many other benefits.

  1. Reduce your monthly balance. Use your credit cards to shop more and split down payments to reduce your monthly balance with low or even 0% interest rate and no additional fees.
  2. Flexible and long tenors. You can choose flexible instalment payments in 3, 6, 9, 12 or 24 months, depending on the item and depending on the bank that owns the card.
  3. Cash in on your rewards programs. Keep collecting the points, cashback or discounts that your card entitles you to.
  4. No hidden fees. Many credit card instalment plans have no fees, no interest, and no penalty if you want to pay it off early.
  5. Able to pay off your balance early. You can prepay your instalment amount ahead of time if your finances allow. In case you want to terminate the instalment agreement, you'll need to pay off the total remaining balance plus any accrued costs (if any). Generally, you will only be allowed to perform a complete prepayment for a credit card balance (or with conditions) and not a partial prepayment.
  6. Continue using sign-up offers and all other benefits. With a credit card instalment plan, you can continue to use all of your credit card sign-up offers and other promotions that help you benefit from all your spending, whether it's online shopping, hospitality services, food and beverage or entertainment.

For example, HSBC Cash Back credit cardholders receive:

  • 0% instalment plan with tenor up to 24 months at hundreds of stores
  • 0% interest rate up to 55 days prior to the first instalment payment
  • Up to 8% cash back at supermarkets and grocery stores
  • 1% unlimited cash back on education and insurance spending
  • 0.5% unlimited cash back on other purchases
  • Up to 50% discount on shopping, entertainment, health and cuisine at associated partners

HSBC has a variety of cards with cashback rewards and instalment programs

What kinds of credit card instalment plans are there?

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?

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Want to make a purchase at one of HSBC's preferred merchants?

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.

0% Interest Instalment Program

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.

How to use the 0% Interest Instalment Program

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.

Be sure to read the terms and conditions from the merchant before making your purchase. Some will require a minimum spend or offer limited choices when it comes to the length of your tenor, or how long you can take to pay for your purchase. In general though, you can sign up for as little as 3 months, or take up to 24 months to pay.

Below is an example of your repayment if you made VND 48 million.

Tenor option Monthly repayment
3 months
VND16 million
6 months
VND8 million
12 months
VND4 million
24 months
VND2 million

Below is an example of your repayment if you made VND 48 million.

Tenor option 3 months
Monthly repayment VND16 million
Tenor option 6 months
Monthly repayment VND8 million
Tenor option 12 months
Monthly repayment VND4 million
Tenor option 24 months
Monthly repayment VND2 million
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Want to shop somewhere else?

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%.

How a 0% Instalment with low conversion fee works

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.

An example of how 0% instalment plan works when you are buying a new fridge for VND 30 million.

Tenor
Conversion fee
First month payment
Remaining monthly payments
3 months
1.99%
VND10,597,000
VND10 million
6 months
3.99%
VND6,197,000
VND5 million
9 months
4.99%
VND4,830,334
VND3,333,334
12 months
4.99%
VND3,997,000
VND2,500,000

An example of how 0% instalment plan works when you are buying a new fridge for VND 30 million.

Tenor
3 months
Conversion fee
1.99%
First month payment
VND10,597,000
Remaining monthly payments
VND10 million
Tenor
6 months
Conversion fee
3.99%
First month payment
VND6,197,000
Remaining monthly payments
VND5 million
Tenor
9 months
Conversion fee
4.99%
First month payment
VND4,830,334
Remaining monthly payments
VND3,333,334
Tenor
12 months
Conversion fee
4.99%
First month payment
VND3,997,000
Remaining monthly payments
VND2,500,000

How to use the 0% Interest Instalment Program with low conversion fee

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.

Check out our different cards that offer 0% instalment plans with flexible terms

A few important details

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.

Facing an extra high credit card bill

Pay off an existing credit card bill with a Balance Conversion Plan

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.

How to use a Balance Conversion Plan

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.

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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.

Did you find the credit instalment plan that's right for you?

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. Apply for one now to get your favourite items right away with instalment plans of your choice!

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