Best Easy Payment Plans in Malaysia 2020

Easy Payment Plan (EPP) allows you to breathe easy when making big purchases - convert your repayments into flexible 0% EPP instalments with your credit card and enjoy interest free shopping for up to 36 months. You could save hundreds of Ringgit.

Credit Card Instalment Plan Malaysia: Buy now, pay later

Ever caught yourself considering buying something you have been eyeing on to but are conflicting with your own conscience whether you want or need it?

Don’t dwell on your indecision for too long, there is an alternative you can explore to make that big-ticket item purchase affordable. 

Read on as we will guide you to discover how you can turn that wish list into a reality via a credit card easy payment plan.

What is an easy payment plan?

An easy payment plan (EPP) or also known as a flexi payment plan (FPP) is a credit card instalment plan that allows you to convert your purchase(s) into smaller instalment payment for a fixed period of time.

Normally, when you swipe your credit card on a retail transaction, you have a 20-day interest-free period after the statement is issued to settle the payment in full amount. 

After reaching the statement due date you still haven’t made a full payment yet, the bank can slap you with a finance charge of between 15%-18% p.a. on the outstanding balance.

This interest will compound every month until you have cleared up the outstanding balance, which could take months or years. Worst comes to the worst, your credit score will not be impressive too.

Nowadays, most credit cards are equipped with a 0% easy payment plan to make purchases more convenient and affordable for you, regardless of your income groups. 

Are you not familiar with a credit card instalment plan? Continue reading.

How a credit card instalment plan works?

Essentially, a credit card can have 2-3 instalment plans for different purposes. They are:

  Easy payment plan Balance transfer plan Cash loan plan

In a nutshell (or some say, TL;DR)

Convert expensive purchase to cheaper monthly instalments

Transfer outstanding balances from other cards to a new credit card

Like cash advance but repay later, in monthly instalments

Requirement

Make a minimum retail purchase in a single receipt, or combine multiple purchases to meet minimum purchase amount

Have a minimum amount you are allowed to transfer to a new credit card and can consolidate up to 5 credit card outstanding debts

Can withdraw cash up to 90% of the credit limit. No paperwork is required

Tenure

Flexible

Flexible

Flexible

Interest rate

From 0% p.a.

From 0% p.a.

Almost similar to a personal loan interest rate

What are the things to look out for in an easy payment plan?

When enrolling your retail purchase into an EPP, you need to watch out for these features as they may not be universal for all credit cards:

0% interest rate

To maximise on savings, you want to be repaying the same amount you have swiped without an extra fee or charge being added onto it. When looking for an EPP that is offering 0% interest, pay attention to the fine prints too; are there any fees that you need to pay upfront?

Flexible tenures

If repaying a huge amount of credit within a 20-day grace period is unmanageable for you, an EPP gives you the flexibility to stretch the repayment up to 36 months. If you’re lucky, you may get 0% interest on a longer tenure, which gives you a lower monthly commitment.

Participating merchants

A bank will usually have a list of participating merchants that are offering 0% instalment plans. If your favourite store is not participating in the 0% EPP program of your credit card, you can still convert the purchase into a flexi pay plan at an interest rate.

Minimum repayment clause

This clause is to encourage cardholders to make a minimum repayment on their outstanding balances to avoid getting penalised for missing or late payment. Oftentimes, most banks require a full payment of EPP and other credit facilities, on top of the minimum monthly payment of RM50 or 5% of the outstanding balances.

Principal cardholder only?

While all instalment payment plans are offered to the principal cardholders, some banks allow purchases made by supplementary cardholders to be combined with the primary ones to convert as an easy payment plan.

Is it better to pay with a 0% instalment plan?

Wait, are you still calculating whether to pay in cash or 0% EPP on that wish list item? Now, let’s take a look at an example below:

Salina is a beauty influencer who creates social media contents on a weekly basis. With the new iPhone is launching, she wants to upgrade her current smartphone for a better quality video. 

This purchase will cost her RM6,000. Which is the best choice of payment for her?

Method of payment Pro Con

Cash

Full payment

Full ownership

No debt

Savings for emergency purposes might have depleted.

Credit card

Full payment

Full ownership

Up to 18% p.a. interest rate is charged on the outstanding balance when partial to zero payment is made after a 20-day interest free period.

0% easy payment plan for 6, 12, 24 or 36 months

Full payment

Full ownership

Low monthly commitment

Flexible repayment tenure

0% interest rate

Missing a monthly EPP payment will cause the 0% interest rate to be reversed to 18% p.a. by the bank, subject to terms and conditions.

To commit a lower monthly commitment, Salina can choose to repay RM6,000 up to 36 months at 0% interest rate. 

Had Salina made the purchase with cash or credit card, it could take her up to 36 months (or more than that) to recover her used up savings.

How to sign up for a 0% flexi payment plan?

We hear that you are ready to go with a 0% easy payment plan on your upcoming purchase, so we have outlined the A to Z of applying a 0% flexi payment plan for you:

  1. Own a credit card. If you don’t have any yet, apply for one at RinggitPlus now
  2. Check if the store is a participating merchant of your credit card 0% EPP
  3. Inform the store’s cashier that you would like to use EPP and choose your preferred tenure upon payment
  4. Swipe your credit card
  5. Check your statement for the amount of your monthly instalment and start repaying

Other ways you can sign up for an 0% EPP is to do it via SMS or by submitting the application form directly to the bank. 

Some banks give you several days after the purchase transaction date to decide if you want to convert them into a flexi instalment plan. The rule of thumb is, don’t throw away the proof of purchase yet.

Any other things to keep in mind when using a 0% instalment plan?

The amount of your EPP will be drawn from the card’s available credit limit. For example, you have a credit limit of RM10,000 and want to convert RM6,000 into a 0% instalment plan, you will have a credit balance of RM4,000. 

This amount will be your new credit limit on other transactions. Sometimes, when you get too caught up in your spending spree, you may not realise that you are going over the reduced credit limit, which can incur a costly fee.

You may not also want to miss even one monthly payment of your 0% EPP instalment because it can be detrimental to your budget. Banks will strip off that 0% interest when a payment is missed and charge a 18% p.a. until the completion of your EPP tenure.

And last but not least, your credit score will be affected when a missing payment is captured in the system. 

Tips: Wondering why banks keep rejecting your applications? Check your credit score today and get a FREE credit report of your overall financial health.

Best credit cards for 0% easy payment plan

Earlier, we have mentioned that a credit card issuer can have selected merchants that you can qualify for a 0% instalment plan. Do you know that you can also check if your credit card is participating in the merchants’ 0% easy payment plans? Here are some of them:

Category Merchant(s) Card issuer(s)

Gadgets / accessories

Apple, Samsung

Telco smartphone plans

Maxis, Digi, Celcom

Furnitures

Ikea, Court

Home appliances

Harvey Norman, Senheng

Insurance premiums

AIG, Manulife

Best 0% EPP program: The honourable mention goes to… 

UOB credit cards have some of the best 0% easy payment plans for specific categories such as: 

Education, medical and luxury items

For a limited time until 31 December 2020, when you spend a minimum of RM10,000 in a single transaction with UOB Visa Infinite on these categories, you can convert it to a 0% Easi-Payment Plan for 12 months, subject to terms and conditions.

Overseas purchases

For a limited time until 31 December 2020, you can convert your purchases made in foreign currency equivalent to RM3,000 in a single or accumulated receipts to a 3-months EPP at 0% interest. Open to all UOB cardholders, subject to terms and conditions

LuxePay by Lady’s Card

For the Lady’s cardholders (Gold, Platinum and Solitaire), you have the privileges to convert your luxury and overseas purchases into a 0% EPP via UOB LuxePay Easi-Payment Plan.

All in all, a 0% EPP is a practical choice for you to make that big-ticket item purchase such as gadget, furniture, accessories etc as you can commit a lower monthly instalment for as long as you are convenient.

Not sure which 0% easy payment plan is right for you? Compare and apply for a credit card now.