HSBC UK launches credit card instalments to help customers with repayments
02/07/2021
News
A new payment option that will help credit card holders pay for larger purchase items has been launched by HSBC UK, the bank announced today.
The new feature, called ‘Instalment plans’, is available through the bank’s mobile app and enables eligible credit card customers to convert recent spend into bespoke instalment plans - dividing spend of at least £250 into 3, 6 or 12 equal monthly payments.
The feature is interest free and comes with a small monthly fee, which can be as little as £1.67 for a 3-month plan repaying £250. The amount of the instalments and fees will depend on the plan amount and period and it will be consistent each month customers have the plan. Purchases of at least £100 can be amalgamated to meet the £250 minimum, and customers can have up to 6 plans at one time.
This could help customers pay less with an instalment plan as it will reduce the amount of interest they pay on their card. For example - a customer on a typical APR of 21.9% could save £99.16 by repaying £1,500 on an instalment plan compared to repaying it over the same period without an instalment plan.
The feature is designed to help customers spread the cost in a simpler way that gives customers more control. They can use their existing credit card limit, do not need to apply for additional lending and choose to use their card as normal or opt to spread the cost at any time.
The simple process in the HSBC App will provide quotes for different instalment plans, helping customers agree repayment plans which can be automatically managed and it will also give customers the option to personalise plans to suit the customer needs. They can also enjoy all the existing credit card offers and features in the app.
Andrew Rankin, Head of Unsecured Products, HSBC UK said: ‘Customers have told us that they would welcome an option to repay their credit card spend in instalments and we are excited to launch these instalment plans. Enabling customers to spread larger payments into instalment plans and combine purchases made at different times will not only help them budget with a pre-defined monthly payment, they can also combine different items in one plan to help them understand their spend.
“For example, a customer may have a bought items of furniture from different shops, and combining them into one payment plan may make it easier for them.
“Customers may also find it helpful to pay for a higher cost individual item like a new laptop or phone. Splitting the cost into equal payments with a pre-determined end date and small fee may be preferable to them and gives them more flexibility.
“With clearly defined repayment terms, monthly and total costs, the instalment plan will help customers with their budget and give them more control of their finances.”
The feature is interest free and comes with a small monthly fee, which can be as little as £1.67 for a 3-month plan repaying £250. The amount of the instalments and fees will depend on the plan amount and period and it will be consistent each month customers have the plan. Purchases of at least £100 can be amalgamated to meet the £250 minimum, and customers can have up to 6 plans at one time.
This could help customers pay less with an instalment plan as it will reduce the amount of interest they pay on their card. For example - a customer on a typical APR of 21.9% could save £99.16 by repaying £1,500 on an instalment plan compared to repaying it over the same period without an instalment plan.
The feature is designed to help customers spread the cost in a simpler way that gives customers more control. They can use their existing credit card limit, do not need to apply for additional lending and choose to use their card as normal or opt to spread the cost at any time.
The simple process in the HSBC App will provide quotes for different instalment plans, helping customers agree repayment plans which can be automatically managed and it will also give customers the option to personalise plans to suit the customer needs. They can also enjoy all the existing credit card offers and features in the app.
Andrew Rankin, Head of Unsecured Products, HSBC UK said: ‘Customers have told us that they would welcome an option to repay their credit card spend in instalments and we are excited to launch these instalment plans. Enabling customers to spread larger payments into instalment plans and combine purchases made at different times will not only help them budget with a pre-defined monthly payment, they can also combine different items in one plan to help them understand their spend.
“For example, a customer may have a bought items of furniture from different shops, and combining them into one payment plan may make it easier for them.
“Customers may also find it helpful to pay for a higher cost individual item like a new laptop or phone. Splitting the cost into equal payments with a pre-determined end date and small fee may be preferable to them and gives them more flexibility.
“With clearly defined repayment terms, monthly and total costs, the instalment plan will help customers with their budget and give them more control of their finances.”
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