OCBC recently launched a credit card with an inbuilt interest-free instalment plan for any purchase, anywhere. This is the first card of its kind in Singapore.
A typical credit card only gives you interest-free on your purchases up till your statement due date, after which you will have to settle the outstanding balance in full or incur interest.
The OCBC Cashflo card helps customers manage their cash flow by automatically dividing their credit card purchase amounts into three or six equal interest-free monthly payments, when they charge any amount above S$100 to the card.
As an added feature, customers have the flexibility to set the minimum spend, in multiples of S$100, to activate the instalment plan on their cards.
The OCBC Cashflo card offers a six-month instalment plan for purchases made at major Singapore department stores – Robinsons, Takashimaya, Isetan and CK Tangs, luxury boutiques, insurance companies, travel agencies as well as for any overseas spend. Any other purchase will automatically go onto a three-month instalment plan.
In addition to the interest-free instalment plan, OCBC Cashflo card members will receive cash rebates of up to 1% for any purchase.
Customers can sign up for the card via OCBC Bank branches island-wide, with the annual fee of S$64.20 waived for the first two years. From 19 April to 30 June 2012, members who charge a minimum of S$500 within the first month of card approval will also receive a luggage bag.
While a three or six months interest free installment can seem enticing, we have to be careful not to overextend ourselves and buy something just because we can pay it off over a period of three or six months.