You see a diamond ring that you have dreamt of or want to buy the latest play station or just own a nice television, but the thing holding you back from making those purchases is the lack of funds. Using a credit card to make those purchases simply means that you have to repay the amount before the due date or you will end up paying a hefty interest if you carry forward the balance on your credit card. Therefore, people prefer the easy payment plans as they are ideal to pay for expensive products. Easy payment plans enable you to buy something that you cannot afford to pay in one shot. You will have to save up for months to be able to afford the product.
With the introduction of easy payment plans, people can buy the product straightaway and stagger the repayments over few months at 0% interest. This will allow you to get what you want, when you want it. When you purchase a product on your credit card using an easy payment plan, you will be converting the purchase to the easy payment plan by calling the call centre number of your credit card provider. You can choose to repay the amount in 3, 6, 9, or 12 months. No charges will be involved but there will, however, be some limitations.
Things you must be aware of
When you are choosing the easy payment plan option, you must be aware of the following:
- Not all retailers have partnership with your credit card provider to provide easy payment plan. There will be certain retailers who allow the option. So, you need to check with your credit card provider before you make a purchase using the card.
- There will be different eligibility criteria for different merchants. The repayment period may be limited. You need to first clear it out with the provider as you don’t want to be stuck with high repayments.
- If you are repaying the due amount early, you may be charged a foreclosure fee. You must also ensure that you are staying within your card limits.
- You need to keep an eye for the expiry date of the easy payment plan so that you don’t miss out on a good deal because of a limited time frame.
- You must always shop around for the best credit cards. The first thing you need to look up is the merchants that the card has tied up with. If you want to save time, you can go ask the merchants that you visit very often and ask them about the banks that they have tied up for easy payment plans. Most merchant stores will have multiple partnerships for the easy payment plan.
- If you miss the repayment for the easy payment plan, your will incur some charges and the transaction might revert to a standard credit card purchase. This may lead to interest being charged on the amount.
- If you are in no position to afford the repayments, it is wise to refrain yourselves from making those purchases.
Best easy payment plans in the UAE
Following are the best easy payment plans you can find in the UAE:
- Emirates NBD: It has 222 partners. The repayment period offered is 3, 6 or 12 months. The minimum spend has to be AED500 and above and AED1,000 and above. The key partners are Ikea, Virgin Megastore, Carrefour, Emirates Airlines, Plug-ins, Al Futtaim watches and jewellery, Western Furniture, Fitness 360, Bose, Marks & Spencer, etc.
- Mashreq Bank: It has 148 partners. The repayment period offered is 3, 6, 9, 12 or 24 months. The minimum spend has to be AED500 and above and AED2,000 and above. The key partners are Sharaf DG, Noor Takaful, Lulu Supermarket, e-max, Jumbo Electronics, Nokia, Jacky’s Electronics, Emirates driving institute, E-city, Plug-ins, etc.
- HSBC: It has 19 partners. The repayment period offered is 3, 6, 9 or 12 months. The minimum spend has to be AED500 and above and AED2,999 and above. The key partners are Fitness First, Joyalukkas, Panasonic, Homes r us, Jacky’s Samsung, Sharaf DG, Omeir Travel Agency, etc.
- NBAD: It has 204 partners. The repayment period offered is 3, 6, 12 or 18 months. The minimum spend has to be AED500 and above and AED1,000 and above. The key partners are Souq.com, Cox and Kings, Mercedes-Benz, Home Centre, Renault, Malabar Gold and Diamonds, River Island, H&M, Nokia, etc.
- First Gulf Bank: It has 21 partners. The repayment period offered is 3, 6, 9 or 12 months. The minimum spend has to be AED500 and above and AED2,000 and above. The key partners are Sky Jewellery, VLCC, ALSHOP, Laili Jewellers, Royal Palace Furniture, Kaya Skin Clinic, Alamo & National Car Rental, v-kool, Body & Soul Health club & Spa.
- ADCB: It has 27 partners. The repayment period offered is 3 or 6 months. The minimum spend has to be AED500 and above and AED1,000 and above. The key partners are Damas, Marks & Spencer, Jacky’s Electronics, Golf House, Sharaf DG, Emax, Plug ins, Home Centre, 050 Telecom, Malabar Gold & Diamonds, etc.
Apart from those mentioned above Emirates Islamic Bank, Barclays Bank, Dubai First, Najm, Citibank, Union National Bank, Commercial Bank International, and Samba also offer easy payment plans in the UAE.