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|Credit Card||Processing Fee||Tenure|
|DBS Woman's Card||0%||3 to 12 Months|
|Standard Chartered Spree Card||5%||6 or 12 Months|
|CIMB Visa Signature Card||3% to 5%||6 to 24 Months|
|HSBC Advance Credit Card||3% to 5%||3 to 12 Months|
|Standard Chartered Unlimited Cashback Card||5%||6 or 12 Months|
|POSB Everyday Card||0%||3 to 12 Months|
If you are planning to purchase big-ticket items, it is worthwhile to look into credit cards offering 0% instalment plans. This is a way for you to split a large purchase into smaller repayments over several months. You will not be charged interest on the outstanding portion of your bill. 0% instalment plans are definitely a better option compared to just paying the minimum on your credit card bill (and letting the unpaid balance accrue tons of interest!).
If your credit card offers a 0% instalment plan, it will be offered only for selected credit card charges that are above a minimum amount (e.g. S$100). You can choose from a few repayment tenures (e.g. 3 months, 6 months, 12 months) and there is usually a one-time processing fee (e.g. 3%) you need to pay to start the instalment plan. Once it starts, you will need to commit to the instalment plan. If you choose to repay the amount early, you may have to pay a penalty for that.
Credit card issuers may work with selected retail partners, such as electronics stores and luxury boutiques, to offer special instalment plans. Below are some examples.
Yes, but there are not many options. Courts’ instalment plan is the best-known example of one that does not require a credit card. You can choose from various repayment periods (up to 60 months) as long as the purchase is at least S$150. However, you need to pay the first month’s instalment upfront, plus a processing fee. Your instalments will also be subject to very high interest (as high as 33.99% p.a.!). If you have a credit card, it is better to opt for the credit card 0% instalment plan instead.