A credit card instalment plan allows you to repay a specified amount in fixed instalments over time, often with no interest. It functions like a personal loan, repaid over a chosen period, such as 18 months. You don’t need to reapply for the credit card but must request the instalment plan to be set up. Once in place, you will make fixed repayments until the debt is cleared.
How do credit card instalment plans work?
Credit card instalment plans can be set up by contacting the bank’s customer service or online banking. Here’s how:
- Compare available plans. If you don’t have a credit card yet, use a comparison table to find one with an instalment plan that fits your needs. If you already have a card, log into online banking and review your options.
- Choose what you want. Depending on the credit card, you might be able to set up an instalment plan for part of your balance, the entire balance, or a specific purchase. Select the plan that aligns best with your needs.
- Request setup. If you can’t do it online or with customer service, you may need to ask the bank to set up a plan online or with customer service.
- Repayments begin. With a fixed payment plan, you will pay off a set amount each month for the duration of the plan. Some plans allow early repayment or term extension.
What credit card has the best instalment plan?
Instalment plans vary widely between banks. Consider the following factors:
- Amount. Ensure the plan covers the amount you need, as different plans accept different minimum and maximum amounts.
- Eligible purchases. Not all purchases qualify. For example, balance transfers generally cannot be moved to an instalment plan.
- Interest rate. The instalment plan’s interest should be cheaper than the ongoing purchase rate.
- Term. Terms vary between banks, ranging from 3 months to 5 years.
- Flexibility. Look for options to change the plan’s length, cancel, or repay early, as your financial situation may change.
- Fees. Compare establishment and monthly account-keeping fees.
What can you use credit card instalment plans for?
- Repaying debt in a set period. Unlike credit cards with minimum repayments, instalment plans have fixed terms, making budgeting easier and helping you tackle debt.
- Financing a specific purchase. Spread the cost of large purchases, like holidays or electronics, over time with assured repayment.
What banks offer credit card instalment plans?
- American Express Plan It. Pay off $150+ from your most recent statement with interest-free instalments over 3, 6, 9, or 12 months.
- Bankwest Easy Instalment Plan. For eligible purchases between $100 and $10,000 from your most recent statement, repaid interest-free over four monthly instalments.
- Bank of Queensland Instalment Plan. Set up a plan for $500+ over 1-5 years, with personalised rates.
- Citi FlexiBill. Convert $500+ of retail purchases from your latest statement.
- Citi PayLite. For $50+ of upcoming expenses not yet on your statement.
- Coles Instalment Plan. Convert part or all of your eligible purchases from your most recent statement into monthly repayments, minimum $500.
- CommBank SurePay. For specific purchases ($100+), some or all of your balance ($600+), or to pay off a cash advance ($600+), with up to 10 plans and no additional credit checks.
- humm90WRAP. For purchases of $250+, converted to an interest-free plan over 9, 12, or 15 months, with an establishment fee.
- Latitude Financial Services. Offers plans with minimum monthly payments, fixed repayments, or flexible payments.
- Qantas Money Statement Instalment Plan. Convert eligible purchases from your most recent statement to an interest-free instalment plan.
- St.George Plan&Pay. Convert purchases of $200+ from your most recent statement to an interest-free plan over 3, 6, or 12 months.
- Virgin Money Instalment Plan. Convert up to 90% of your available credit into cash ($500+), purchases from your most recent statement ($500+), or upcoming purchases ($50+).
- Westpac SmartPlan. Set up to 8 plans at a time for specific purchases from your latest statement ($500+) or any part of your balance ($200+).
