Best instalment credit cards

When you’re planning a major purchase or large expenditure, such as new furniture, a wedding or a holiday, you may not have enough cash to pay for it right away. But an instalment credit card will give you the option of repaying over a longer period of your choice, in smaller monthly repayments, with the possibility of extra benefits like cashback and air miles.

By   |   Verified by Kwok Zhong Li   |   Updated 20 Sep 2023

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Comparing instalment credit cards

HSBC Advance Credit Card

On website

Featured

HSBC Advance Credit Card

Minimum amount

S$500.00

Processing fee

from 3.00% up to 5.00%

Tenure

Maximum of 36 months

Highlights

  • Get up to 3.5% Base Cashback on local and overseas spend (Terms and Conditions apply).
  • Get an additional 1% Bonus Cashback with HSBC Everyday+ Rewards Programme.
  • 1-year annual credit card fee waiver.

Pros

  • Earn up to 3.5% cashback when you meet the criteria.
  • No minimum spend is required.
  • Split your purchases into installments at 0% interest over 3 to 24 months.
  • Comes with complimentary travel insurance.
  • Enjoy shopping, dining, and travel deals.

Cons

  • The annual fee reverts to S$194.40 p.a. after the initial year (waived if you spend S$12,500 per year).
  • The ongoing interest rate of 26.90% p.a.
OCBC Great Eastern Cashflo Credit Card

On website

OCBC Great Eastern Cashflo Credit Card

Minimum amount

S$100.00

Processing fee

S$0.00

Tenure

Maximum of 6 months

Highlights

  • 0% installments with rebates.
  • Earn 0.3% cashback if your monthly bill is less than S$1,000 and 1.2% cashback if your monthly bill is equal or greater than S$1,000. Capped at S$100 a month.
  • Automatically splits your payments across 3 months for transactions between S$100 to S$1,000 or across 6 months for transactions equal to or greater than S$1,000.

Pros

  • Split your bills into 3, 6, or 12-month installments.
  • Earn up to 1.2% cashback.
  • No annual fee for the first 2 years.

Cons

  • The annual fee is waived for the 1st 2 years, but you will be charged $162 for the principal card and $81 for the supplementary card after.
  • Cashback is capped at $100 each month

CIMB Visa Signature Credit Card

CIMB Visa Signature Credit Card

Minimum amount

N/A

Processing fee

N/A

Tenure

N/A

Highlights

  • Earn 10% cashback on online Shopping, Groceries, Beauty & Wellness, Pet Shops & Veterinary Services, and Cruises.
  • $0 p.a, annual fee.
  • Get up to $500,000 in travel insurance coverage.

Pros

  • Get additional cards for free.
  • All other purchases get you an unlimited 0.2% rebate, with no minimum spending needed.
  • Cash rebate is auto-credited to you.

Cons

  • Min $30,000 annual income for citizens/PRs or min $10,000 fixed deposit collateral
  • Bank promo is only applicable to new CIMB cardholders 
  • Free travel insurance only when your air ticket is charged to your card.
DBS Woman's Card

DBS Woman's Card

Minimum amount

N/A

Processing fee

N/A

Tenure

Maximum of 24 months

Highlights

  • Earn 5X DBS Points (2 miles per S$1) on online purchases.
  • Earn 1X DBS Point (0.4 miles per S$1) on other purchases.
  • The first-year annual fee is waived (worth $S162).

Pros

  • There is a complimentary e-Commerce Protection on your online purchases
  • Option to pay in installments of up to 24 months
  • Enjoy exclusive privileges on dining, shopping, and travel.

Cons

  • After the initial year, there is a S$162 annual fee.
DBS Woman's World Card

DBS Woman's World Card

Minimum amount

N/A

Processing fee

N/A

Tenure

Maximum of 24 months

Highlights

  • Earn 10X DBS Points (4 miles per S$1) on online purchases.
  • Earn 3X DBS Points (1.2 miles per S$1) on overseas purchases.
  • The first-year annual fee is waived (worth $S194.40).

Pros

  • Earn 1X DBS Point (0.4 miles per S$1) on other purchases.
  • There is a complimentary e-Commerce Protection on your online purchases
  • Option to pay in installments of up to 24 months
  • Enjoy exclusive privileges on dining, shopping, and travel.

Cons

  • After the initial year, there is a S$194.40 annual fee.
  • You must earn S$80,000 and above per annum to qualify for this card.

With an instalment credit card, the full first purchase amount is deducted from your credit limit, but repayment is spread out into manageable instalments. They are the intersection of buy now pay later services and regular credit cards.

Who are instalment credit cards suitable for?

  • Big / regular spenders. Put a big-ticket purchase on your card and spread out repayments with set instalments.
  • Points and rewards earners. Earn rewards but know that your debt will be paid off with a set instalment plan, subject to certain exclusions.
  • Students. Use an instalment credit card to split education bills into instalments over several months. Several credit cards for students offer instalments.

Features to compare for instalment credit cards

  • Credit limit. Even though you repay in instalments, the full purchase amount goes against the credit limit.
  • Points, miles, and cash rebates. Some credit cards award points, miles, or cash rebates on instalment plan transactions. However, remember to read the small print for any exclusions.
  • Rates, charges, and fees. Check for common credit card fees, including the annual fee, the interest rate applied, how many concurrent instalments you can set up, etc.
  • Validity. Not all purchases will qualify for an instalment plan. Check that you can set up an instalment for what you need them for.

How to compare instalment credit cards

  • What do you need instalments for? Outline your spending habits and where you could benefit from an instalment plan. Check that it's possible to set up an instalment for what you need to buy (not every transaction is eligible).
  • Compare additional benefits. Do you want to earn points, miles, and cash rebates? Would other commonly-offered perks such as free travel insurance, fee-free foreign transactions, and lounge access be useful?
  • Understand the fee schedule. Don't get caught off-guard by any fees or charges that may apply. Apart from the usual annual fee and interest on balances, check if there any fees for setting up instalments.
  • Filter and compare side-by-side. When you have narrowed down your options, compare credit card offers against each other and make your choice.

Pros and cons

Pros

  • Use instalment plans to keep debt under control and paid off on a set schedule.
  • Most cards have flexible repayment plans on instalments.
  • Potential to earn reward points or cashback.

Cons

  • Interest incurred if instalments are not paid in full and on time.
  • Some transactions are not eligible to convert to instalments.

Learn about instalment credit cards

Our experts explain everything you need to know about using an instalment credit card.

  • FAQs

How does the credit limit work on an instalment credit card?

The total amount of each purchase is deducted from your available credit limit. For example, if you have a $10,000 credit limit on your instalment credit card, and you start two new instalment plans, one for $2,000 and one for $1,500, you will have only $6,500 credit still available, even though you may see only the monthly repayments, not the full purchase amount, on your credit card statement.

As you make your monthly repayments, your available credit will increase by the amount of the repayments made (unless you make further purchases).

How do I set up the instalment plan on my instalment credit card?

You will typically be required to call customer service to arrange interest-free instalment payments on large purchases, either before you make the purchase or immediately afterwards. You may also need to complete an application form. A few cards offer an automatic trigger that splits large individual purchases into instalments repayable over 3-6 months, so you don’t need to make any special arrangements.

How much is the annual fee for an instalment credit card?

It depends on the card. The higher the cashback or other attached benefits, the higher the annual fee will be.

Annual fees start at $0 (yes, a free card) and rise to around $600. Cards with lower annual fees often waive the fee for the first one or two years. Other cards offer an annual fee rebate in every year where a spending target (e.g. $25,000) was reached in the previous year.

Is there a limit to the number of transactions I can split into instalment repayments on an instalment credit card?

There may be no limit to the number of purchase transactions, but there may be a limit to the number of instalment plans you can have at any one time.

For example, the card may have a limit of six instalment plans on the card at any one time. If there was only one transaction in each of these instalment plans (e.g. wedding + honeymoon + car deposit + furniture purchase + kitchen appliance purchase + computer purchase) then the maximum would be reached in six transactions.

But some instalment credit cards allow you to combine a number of transactions into one instalment plan, after the purchases have been made. There may be a limit on the number of transactions allowed in each instalment plan (e.g. a maximum of 10 transactions per plan) but this would still mean that you could have a large number of transactions being repaid in instalments.

What happens if I want to cancel my instalment plan, or change it, or repay early?

You will usually be charged a fee of $100-$150 if you want to do any of these things.

What is an instalment credit card?

An instalment credit card is a bit like a personal loan, in that it gives you access to cash for large purchases which you can repay in monthly instalments over a longer period (e.g. 12 months). Unlike a personal loan, you don’t have to re-apply for a new loan when you’ve paid off the old one. The credit limit on your instalment credit card remains available for your use. And also unlike a personal loan, you won’t have to pay interest charges on the balance outstanding.

What is an instalment credit card cash rebate?

Not all instalment credit cards offer a cash rebate, but for those that do, it’s a percentage cashback on your instalment credit card spending. Depending on which card you choose, it may be a percentage rebate on all spending (e.g. 0.5% cashback for the first $1,000 spent, 1% cashback thereafter) or on a specific type of spending (e.g. 5% cashback on online and contactless purchases). Some cards have unlimited cashback, while others have a monthly cap (e.g. $125 per month).

What is the maximum repayment period for an instalment plan on an instalment credit card?

Again, repayment periods vary. But generally speaking, transactions below $1,000 can be split into up to 12 instalments, while transactions over $1,000 can be split into up to 24 instalments.

What is the minimum instalment credit card transaction amount that can be split into instalment repayments?

The amount varies from card to card. Some cards allow amounts of as little as $100 to be split, while other cards have a $500 minimum.

What other fees, besides the annual fee, are payable on an instalment credit card?

Most instalment credit cards have a transaction processing fee. An amount generally between 1.5% and 5% of the purchase price is added to the amount of the purchase and forms a part of your balance owed. Further processing fees may be charged for splitting large purchase amounts into repayment instalments. Longer repayment periods may attract a higher processing fee.

What other perks are available with instalment credit cards?

Some cards offer air miles (e.g. 3 miles per $1 spent). Others offer a discount on fuel purchases (e.g. 16% discount at a specific brand of petrol station) or free travel insurance, or airport lounge passes, or dining, hotel and entertainment privileges.

Will I have to pay interest on the balance outstanding on my instalment credit card?

No. instalment credit cards have a 0% p.a. interest rate (provided you always pay your instalments on time). Card issuers recover their costs and make a profit via a combination of the annual fee, transaction and payment plan processing fees and fees charged to merchants.

However, interest may be charged on overdue balances if you miss a repayment, or pay late.