6 Article about installment payment via card Credit you should kno

1. What is installment payment via credit card?

Pay in installments via credit card To be form payment where you are allowed to split the total purchase amount into several smaller payments over a period of time certain when using a credit card. Instead of paying the full amount at the time of purchase, you can pay in flexible monthly installments via card. 

You will have to Pay according to plan or pay in installments with interest and installment conversion fees according to bank regulations. However, you will soon get the item you want, even if your finances are not ready with flexible credit card installment payments and simple procedures. 

2. Benefits of installment payments via credit card

Paying in installments via credit card brings many benefits, making it easy for you to own your favorite items even when your finances are not ready. 

• Convenient and fast: You can shop immediately without preparing a large sum of money. The registration and installment payment process is usually quite quick and simple.
• Flexibility in payment: You can buy products of great value without having to accumulate enough money. You can divide the amount into installments to balance your budget more easily.
• No need to mortgage assets: Unlike mortgage loans that require collateral or unsecured loans that require financial proof, installment payments via credit card do not require the above conditions. You will own your favorite item without mortgaging assets or providing many complicated procedures. 
• Effective spending management: When buying in installments via credit card, you can easily track payments to manage spending more effectively. 
• Many attractive offers: Many banks and stores offer 0% interest installment programs for a certain period of time, helping you save a significant amount of money. In addition, when buying in installments, you also enjoy many incentives such as discounts, gifts, points...

3. Conditions for installment payment via credit card

To enjoy convenient installment payments via credit card, you need to meet the following conditions:

• Valid credit card: Your card must be within its expiration date. You can check the expiration date on the front of the card (usually printed as XX/YY).
• Limit Sufficient credit: Spending limit remaining credit card account must be greater than or equal to the value of the item or service you want to buy in installments.
• Registered for Internet Banking: You need to register for Internet Banking service to perform transactions related to credit cards, including management and installment payments.
• Good credit account: Your credit card account must not have overdue debt, late payments or violate any bank regulations. In particular, your card must be active throughout the installment payment process, not locked or canceled.

3. How to buy goods in installments via credit card

To buy in installments via credit card, you can choose one of the following two ways: 

Pay in installments directly through the store

This is a form where customers come directly to the store to buy products and make installment purchases via credit card. 

• Step 1: Select product: You go directly to the store, choose the product you want to buy and inform the sales staff about payment by installment via credit card.
• Step 2: Verify information: The staff will ask you to provide some personal and credit card information. The staff then reviews and makes the final decision.
• Step 3: Sign the contract: You will sign an installment contract, which clearly states the terms such as prepayment amount, number of installments, interest rate (if any),...
• Step 4: Receive goods: After completing the procedures, you will receive the purchased product.

Pay in installments online by credit card

This is a form of customers buying online and making online payments in installments by credit card.

• Step 1: Choose product: You choose the product you want to buy on the store's website or application.
• Step 2: Add to cart: After selecting the product, add it to your cart and proceed to payment.
• Step 3: Choose payment method: At the payment step, you choose the installment payment method by credit card. TInformation about the interest rate and monthly payment amount will be provided so you know in advance your installment plan.
• Step 4: Enter card information: You enter your full credit card information, including card number, expiration date, CVV code and other information.
• Step 5: Confirm order: After entering your information, you will receive an order confirmation message.

Each form of installment purchase via credit card will have its own advantages and disadvantages. Specifically:

4. Interest rates for installment payments via credit cards vary by case

Each different form of installment payment via credit card will have its own interest rate calculation. Specifically: 

Pay interest in monthly installments: 

The interest rate for monthly installment payments via credit card ranges from 10 - 20%/year. How to calculate interest:

Monthly interest = Outstanding balance x Monthly interest rate

• Unpaid balance: Is the amount of money you still owe the bank at the time interest is calculated.
• Monthly interest rate: Is the nominal interest rate divided by 12 months.

For example:

You buy a phone for 10 million VND and choose 12-month installment payment with an interest rate of 12%/year.

• The first month's interest amount, when you have not paid any amount, the debt balance is 10 million VND. First month's interest = 10,000,000 x 1% = 100,000 VND. 
• Thus, the first month you will have to pay: 10,000,000/12 + 100,000 = 916,667 VND.

The following months will be calculated similarly, but the amount to calculate interest will be the remaining unpaid balance. 

0% interest installment payment 

This is a form in which you do not have to pay interest on the loan, but you will have to pay a conversion fee (this fee is calculated based on the value of the asset purchased in installments).

Conversion fee calculation formula:

% Conversion fee x Product value x Installment term. The percentage of this conversion fee will depend on the installment payment termp.

Formula to calculate monthly installment amount

(Conversion fee + Product value)/ Number of installment months (Conversion fee can be collected at the beginning of the period) 

For example:

You buy a laptop for 20 million VND and choose 12-month installment payment with a 3% conversion fee.

Conversion fee = 3% x 20,000,000 = 600,000 VND.

Monthly installment amount = (600,000 + 20,000,000) / 12 = 1,716,667 VND.

The choice of monthly interest installments or 0% interest installments will depend on the regulations of each bank. Banks usually only apply 0% interest installments to customers who make purchases at affiliated partners. When eligible, 0% interest installment payments will be chosen by many customers to optimize the interest amount. 

5. Note when paying in installments via credit card

Paying in installments via credit card is a flexible and convenient form of shopping. However, you need to keep in mind the following issues when choosing this solution: 

• Research and select preferential partners of the bank: Each bank usually has affiliated partners, which are stores and shopping centers. You should prioritize choosing these units for shopping to receive many attractive incentives when paying with that bank's credit card.
• Activate and ensure card validity credit before using the installment plan: Activating your credit card ensures that your card is active, still in use and can be used to make transactions. If the card has not been activated or has expired, you will not be able to use the installment service.
• Remember your credit card limit: Credit card limit is the maximum amount you can use in a period. You need to clearly understand your card limit to avoid spending more than the allowed limit.
• Learn carefully about interest rates and service fees: Before deciding to use the installment service, you need to carefully learn about interest rates and associated fees. This helps you compare and choose the most suitable installment plan, avoiding unwanted fees.
• Keep track of payment due dates: You should set reminders on your phone or other devices so you don't forget the payment due date. When the due date comes, you need to balance your finances to pay the correct balance, avoid penalty fees and affect your credit score. 

6. Flexible credit card installment payment, low interest rate at SeABank

SeABank is one of the prestigious joint stock commercial banks in Vietnam. The bank provides a variety of financial products and services, including installment payment services via credit cards. 

Currently, SeABank exists c0% interest installment plan. This is a cooperation program between SeABank and partners (stores, shopping centers...) to give customers the opportunity to shop in installments with 0% interest.

Advantage:

• No interest payment: Customers only need to pay the exact amount of the product purchased, without having to pay any additional interest.
• Split payments: Customers can split payments into smaller periods, lasting up to 12 months, helping to balance their finances better.
• Simple procedure: The process of registering and making installment payments is quick and easy.
• Unlimited number of times: Customers can participate in the program multiple times in one statement period.

Condition:

• The customer is a SeABank credit card holder.
• Shop at SeABank's affiliated partners.
• Comply with the program terms and conditions.

With sharing about form Pay in installments via credit card Above, we hope to bring you a lot of useful information. This is a "privilege" for credit card holders that you should not miss when you want to purchase items for work or to improve your quality of life. Credit cards will accompany you to help you spend and manage your finances more effectively. 

If you If you want to learn more about credit cards or SeABank's programs and products and services, you can contact the nearest transaction points or call Hotline 1900 555 587 or visit the website. www.seabank.com.vn for more detailed information.