Credit card installment plans - how do they actually work?

maldini

Hi,

I have a query on credit card installment plans.

Let's say I have a purchase of 2k euro I want to move to an installment plan. I also have let's say 200 euro in other purchases on my credit card.

If I move the 2k purchase to an installment plan to pay off over 6 months how do the repayments work?

Is the 2k now separate to the 200 euro?

Do I pay 333 euro (plus the interest) per month (is it taken by direct debit?) and then the 200 is treated as my normal credit card balance that I should clear by the due date next month?

So many questions, so little time 😃

Any help is appreciated

Thanks

Bank of Ireland Reps

https://www.boards.ie/discussion/2058284512/credit-card-installment-plans-how-do-they-actually-work

Hi there, thanks for checking in with us.

You can apply online for this and prior to applying it will show you the rate and repayments. https://bit.ly/3XFQhQe

It will tell you what the monthly repayments and the total cost of credit.

The total cost of credit is applied monthly. Every month on the statement you would see the interest applying, and you just make your payment ( paying the capitol + interest)

If you put a €2K transaction on Instalment Plan, the balance remains the same. You would simply be aware that when making payment, if you wish to pay all the €200 to pay all that balance in full to avoid regular purchase interest, and then only need to add the sum of payment to pay - the monthly requirement against the €2K part of the balance that’s on Instalment Plan. The sum of instalment plan - the portion of the IP + the portion of IP interest appearing on the bill.

In relation to the direct debit -

100% DD will pay 100% of the regular portion of the balance + only the monthly requirement of IP.

If 50% DD, it will pay half the regular portion of the balance + the monthly requirement of the IP portion of the balance.

If you wish to pay manually and the payment is received at least 4 Working Days ahead of the payment due date, the DD will note the payment and adjust itself accordingly.

Hoping this helps,

Many thanks, Alison

maldini

Lovely stuff, thanks Alison!

Bank of Ireland Reps

https://www.boards.ie/discussion/comment/120248446#Comment_120248446

You're so welcome, Alison.

maldini

Hello again,

I have a query on my installment plan. I thought I understood but turns out I didn't!

I put a transaction on installment plan, 2073.65 euro. 6 monthly instalments of 352.43. This has a total cost of credit of 40.93 and total amount repayable of 2114.58.

I got my statement and it says I owe 352.43 plus 10.19 interest for the month.

I thought the interest was included in the 352.43 figure already.

Am I paying a cost of credit of 40.93 and then interest on top of this?

I'm confused about how this is calculated. Can you advise?

Regards

Bank of Ireland: Eve

Hi there, thanks for coming back to us here.

In this case it would be best to discuss this further with a credit card advisor.

You can contact the team via your mobile app by logging in and select 'Services' and then 'Send us a message' , or you can call the team on 0818251251 and my colleagues can discuss this with you and offer further guidance.

Thanks, Eve