4 myths about credit card instalment credit
Have you ever thought of getting cash from your credit card when you have urgent needs?
A lot of people mistakenly think that getting cash from instalment credit program is the same as using a credit card to withdraw cash from ATMs, but it is not! This article helps you understand the 4 myths about instalment credit vs. cash advance. It also explains that getting cash from instalment credit program is one of the best ways to manage your cash flow.
Myth #1: Instalment credit = cash advance?
Credit card instalment credit and credit card cash advance are two completely different financing options. A cash advance is a means of withdrawing cash from your credit card account at an ATM, and you will be charged at a high interest for it; credit card instalment credit is a low-interest installment financing plan, it is based on the credit limit of your credit card. It is a formal loan, which is similar to a personal instalment loan. Some credit card instalment credit plans offer an APR as low as 3.04%, which is about the same as a regular personal loan. This can be 10 times less than the actual APR of credit card cash advance, which is generally close to 40%1.
Myth#2: Do you need to get approval for credit card instalment credit?
Since credit card instalment credit is similar to personal loan, would it take long to get approved? Of course not! The credit card instalment credit amount is pre-approved, the application process is faster than a personal loan. There are some credit card instalment credit plans in the market offer online applications to be processed as fast as within 30 seconds, and you can get the cash via FPS. This is close to an instant cash2.
Myth#3: Do you need income proof to apply for credit card instalment credit?
Some credit card instalment credit plans in the market offer no document approval! Since the instalment credit amount is pre-approved, you can apply without income proof. That means you can get approval and cash instantly.
Myth#4: Do you need to pay off the credit card instalment credit all in one payment?
There is no repayment period for credit card cash advance, which means you have to pay high interest until you have fully repaid the debts. Instead, there are monthly payment options for credit card instalment credit; some banks offer repayment periods of up to 60 months. You can choose a longer repayment period to reduce the monthly payment amount, or you can choose a shorter repayment period to pay off your debt as soon as possible to reduce your interest expenses. This gives you the flexibility to better allocate your funds.
Apply Instalment Credit Program online and enjoy up to HKD5,000 cash rebate!