Thank you for registering for HSBC Credit Card Low Interest Installment Plan. Within two (02) working days, HSBC staff will contact you within 2 working days to assist with the request. For any assistance, please contact our Contact Center at (84-28) 37 247 247 (the South) or (84-24) 62 707 707 (the North) from 8am to 10pm for further support.
Enjoy flexible payments at hundreds of participating merchant outlets nationwide, from fashion stores to education and medical centres, with HSBC's Card Installment Plan. Enjoy interest-free instalment payments for up to 24 months at no additional cost.
HSBC Bank gives up to 52 days of interest free period on the transactions made on their credit cards. During this period customers don’t have to pay back their credit card bills. This interest free period can be availed as long as the customer pays off the entire outstanding amount by the due date.

The Eligible Cardholder shall pay 100% of the CIP monthly Instalment which is part of the Minimum Monthly Payment due on or before the payment due date. The interest rate offered is subject to HSBC's approval. The terms used herein are as defined in the HSBC Cash Instalment Plan Terms and Conditions. Choose a credit card that offers a zero interest installment plan that fits your finances. Otherwise, you may have to pay interest charges once the installment period ends. For example, you need 12 months to pay the debt in full, but the credit card only offers a six-month 0% installment plan.

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Published: September 22, 2020 | Updated: September 30, 2020 | Posted by: Ricky Publico | Credit Card

Published: September 22, 2020
Updated: September 30, 2020
Posted by: Ricky Publico | Credit Card

Aside from the convenience of swiping and the luxury of perks, one great thing about owning a credit card is availing credit card installment plans. And these payment plans aren’t that hard to find, either. Most banks in the Philippines offer flexible terms, low interest rates, and other special promos to sweeten the deal.

But is it really a good idea to avail a credit card installment plan? On paper, it’s a great way to pay for almost anything. But you’ll be surprised how it can also be disadvantageous at times. Here are the pros and cons you need to consider before you avail a credit card installment plan for your next purchase.

Table of Contents

Pro: Convenient way to buy expensive items

The concept of “buy now, pay later” will always be enticing, especially for the most budget-conscious out there. This is basically the main draw of availing credit card installment plans. After all, why would you fully pay for something when you can space out the payments monthly? And for big-ticket purchases, it’s almost a no-brainer to divide your payments.

And technically, you don’t need a credit card to avail an installment plan^[1]. But you’ll need to submit a bunch of requirements and not all stores offer such plans anyway. With a credit card, all it takes is a few swipes and maybe a couple of signatures here and there. And that’s it—you now purchased something of value without shelling out a single cent. All swipe, no fuss.

Con: No rewards for installment purchases

If you’re a reward-seeker, then credit card installment plans probably won’t be your thing. After all, availing one implies that your credit card’s bank will shoulder the full expense. So you basically owe the bank for the purchase. Why would they reward you for that? Sadly, you can’t have your cake and eat it too. Consider this when you’re thinking of going this route.

Pro: Save your money for other needs or wants

Since you don’t need to pay full price for your big-ticket item, you can then allot your money to other needs or wants. Need a brand new laptop but still want to set aside a budget for this month’s groceries? Bust out your credit card and solve two problems with one swipe. Having a credit card allows you to manage how much you take out from your wallet.

Or if you want to shop for more luxuries without spending most of your shopping budget, credit card installment plans can help you do exactly that. Want to upgrade your phone and buy new clothes without going over? Time to space out the payments and let your future self worry about it later. Just make sure you have enough to actually pay your credit card bills.

Related article: Best Credit Cards for Gadget Shopping in the Philippines

Con: Another monthly payment to worry about

Consider the amount of bills you’re currently paying. Utility bills will always be up there and you probably have internet and phone bills to worry about. Can you afford to worry about another set of monthly bills? Another thing to consider when availing credit card installment plans is your ability to juggle monthly payments. Don’t risk it if you think you’re not ready for it.

Hsbc Credit Card Interest Free Installment Loan

Pro: Earn more money from your purchase

This one benefits those who are planning to start a business or freelance job at home. Instead of spending a lot of money for equipment, you can instead buy what you need now and use your purchase to earn more money to pay it back. Basically, you need to make your purchase pay for itself^[2].

For example, if you need an oven to make your home baking business a reality, you can choose to save money by buying one through your credit card’s installment program. And once business is booming, you can then use some of your earnings to pay your credit card bills. The satisfaction of clearing your debts with your hard-earned money is just icing on the cake.

Hsbc Credit Card Interest Free Installment Plan

Related article: 10 Best Credit Cards for Small Businesses in the Philippines

Con: Your financial future is uncertain

Nobody knows what the future holds. You can’t predict the next emergencies that can hinder you from paying your installments. This may include medical expenses, unemployment, or bad business profits, among others. If you’re not that confident about your financial capacity one month from now, then avoid availing credit card installment plans for a while.

Final Thoughts

Just like most things in life, availing a credit card installment plan comes with its own set of positives and negatives. The challenge now is to determine how you can use it to your advantage. Weigh all your options and consider all possible scenarios before you avail an installment plan. That tactic should apply to any financial decision you make.

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This article was first published in The Manila Times on Sept. 19, 2020.

Read more about credit card basics:

Sources:

^[1]Firms launch installment payment solution for online stores (Philippine News Agency, 2020)
^[2]10 things you can buy that pay for themselves (Business Insider, 2015)

Ricky is the zaniest Senior Content Writer at Moneymax, with