KBC has followed in the footsteps of Bank of Ireland (BOI) by introducing a nifty instalment plan feature on its Mastercard credit card.
Their Credit Card Instalment Plan option allows you to transfer a credit card purchase of €500 or more onto a separate, lower rate of interest and to pay it off in fixed monthly instalments.
Here’s how it works:
If you pay for an item on your credit card that’s €500 or more, you can easily apply to put that purchase on an 'instalment plan'. Just contact KBC Card Services on 1800 93 92 44 to request a transfer of the purchase onto the Credit Card Instalment Plan.
The APR you’ll be charged on the purchase is just 8.64% variable (8.99% APR), which in many cases is lower than the rate you’d be charged on a personal loan.
You can then spread the cost of the item over 12, 18, or 24 fixed monthly payments.
You can have two instalment plan purchases on your credit card at any one time.
Your instalment plan(s) cannot exceed 80% of your credit card limit. So if your credit limit is €2,000, the maximum amount you could transfer is €1,600 (either is one go or spread over two instalment plans).
What else does the KBC credit card offer?
The KBC credit card also comes with:
- 0% interest on balance transfers for the first six months.
- Apple, Google, Fitbit and Garmin Pay - the only bank to offer payments from all four technology companies.
- 1% cashback on grocery and online purchases made with the card, up to €10 a month.
The instalment plan feature is the perfect alternative to getting a small loan and it's great to see KBC continuing to up its game in the area of banking innovation.
Just remember that the purchase to be transferred must be a single purchase of €500 or more and any other purchases will be charged at KBC's normal, higher rate of 18.25% APR.
For now KBC and BOI are the only banks to offer this feature, but hopefully more banks will soon follow suit.
And remember that you can compare all credit cards across all providers in just seconds on bonkers.ie right now.