Credit Card Instalment Plans

With an instalment plan in place, you can:

• Save on interest: You won’t be charged the normal interest rate from your credit card. Instead, you’ll pay a lower rate (or even none) and sometimes a small monthly fee.
• Lower your stress: Instead of feeling overwhelmed by your credit card debt that follows you month after month, you pay it off in small, manageable chunks. 
• Pay flexibly: Depending on the plan, you may be able to have multiple plans on the go at once to help manage your repayments. You can often change the length of your plan and pay it off early without penalty.

Let's look at how it might work with an example.

Which Cards have Instalment Plans?

Now we know how instalment plans work in theory, let’s look at how they work in practise by digging deeper into each provider’s instalment plan offering.

American Express

• Eligibility: Available to all American Express cardholders, except those with Corporate, Small Business, Charge cards, and David Jones branded credit and store cards.
• Plan It Feature: Allows you to move recent transactions and new purchases to an instalment plan with 0% p.a. interest.
• Setup: Log in to your online account or American Express App, choose a transaction from your new purchases or most recent statement (minimum $100), and select the plan duration (3, 6, 9, or 12 months).
• Fixed Monthly Fee: You will pay a fixed monthly fee, determined by the type of card you hold and the plan amount.
• No Fixed Maximum Amount: There is no fixed maximum amount you can plan, but the plan must consist of new purchases from your most recent statement.
• Multiple Plans: You can have multiple plans at once, but the total amount of all plans must be within your credit limit.
• Ineligible Transactions: Balance transfers, cash advances, fees, interest, and balances on a promotional rate are not eligible.
• Interest-Free Days: You can keep your interest-free days on new purchases if you pay your closing balance by the statement due date.
• No Changes: You cannot make changes to a plan once it’s been created.
• Cancellation: You can cancel a plan at any time without early repayment fees. The remaining amount will go back to your card balance.
• No Extra Payments: You cannot make extra payments towards your plan balance. Any extra payments will be applied to your standard balance.

Are instalment plans cheaper? Let's look at Fictional Lee's example.

So, what if you had a larger amount to pay off?

It’s worth pointing out that fees charged on each Plan It plan vary according to the type of card held. We used the Plan It calculator on the American Express site as a guide. You may pay more or less in fees, depending on your card.

Bankwest

Bankwest offers its Easy Instalments feature to all Bankwest credit cardholders. Here’s how it works.

• Eligibility: All Bankwest credit cardholders can set up an Easy Instalment plan for purchases between $100 and $10,000.
• Setup: Plans can be set up through the Bankwest App under the "Offers" section.
• Repayment Schedule: Bankwest will provide details of the plan within 2 business days, including the repayment schedule and any interest or fees.
• Credit Limit: The amount held within a plan counts towards your overall credit limit.
• Interest-Free Days: You can still benefit from interest-free days on new card purchases if you pay your monthly instalment amount and the full closing balance outside of those instalments by the statement due date.
• Eligible Transactions: Cash advances, gambling transactions, balance transfers, purchases on a promotional offer, and purchases made more than 30 days prior are not eligible.
• Extra Payments: You can make extra payments towards your plan, but any balance outside the plan will be paid first.
• No Obligation: There is no obligation to make the monthly instalment payment, but any missed payments will revert to the standard purchase rate.

BOQ

BOQ provides 3 types of instalment plan to its credit cardholders, which include Statement Instalment, Transaction Instalment and Cash Instalment plans.

• Types of Plans: BOQ offers Statement Instalment, Transaction Instalment, and Cash Instalment plans.
• Eligibility: You can spread the cost of your entire credit card balance, just one purchase, or a cash advance.
• Personalized Fixed Rate: Plans feature a personalized fixed rate and are created over a set term ranging between 1 and 5 years.
• Minimum Amounts: The minimum amount for a Statement Instalment or Cash Instalment is $500, while for a Transaction Instalment it is $50.
• Multiple Plans: You can have multiple plans at once, as long as the total doesn't exceed your overall credit limit.
• Interest-Free Days: You can continue to benefit from interest-free days on purchases as long as you pay your closing balance in full by the statement due date.
• Fees and Interest: Aside from the fixed interest rate, you may also pay an Instalment Plan fee, with details specified in the offer BOQ sends you.
• Missed Payments: If you fail to pay the monthly instalment by the due date, interest on that amount will be applied at the card’s purchase rate, and BOQ may choose to cancel the plan, reverting the balance to the card’s applicable rate.
• Plan Changes: You can change the term of your plan, which will change your instalment amount, and you can pay off your plan at any time with no fees.

Citi

Like buy now pay later, but for anything, Citi offers 3 Citi Instalment Plans to its credit cardholders.

• Citi Quick Cash: Convert a withdrawal of $500 or more.
• Repayment Terms: Repayments feature a fixed rate, with terms ranging between 1 and 5 years.
• Credit Limit: Each instalment plan uses part of your existing credit limit, freeing up space as you pay off the plan.
• Missed Payments: If you miss an instalment payment, the card’s applicable rate will be applied to the missed amount, or Citi may cancel the plan, reverting the balance to the card’s applicable rate.
• Additional Payments: You can make extra payments on your plan, with advance notice required unless the instalment plan is the only balance owing.
• Plan Changes: You can change the term or pay off your plan at any time without fees

Coles

As a Coles credit cardholder, you can utilise a Coles Instalment Plan, which has the flexibility of 3 different instalment options:

• Statement Instalment: Convert $500 or more from the closing balance of your last statement.
• Transaction Instalment: Convert purchases of $50 or more that are yet to appear on your statement.
• Cash Instalment: Convert cash withdrawals of $500 or more.
• Setup: You can set up an instalment by calling Coles on 1300 066 985.
• Credit Limit: Instalment plans use part of your existing credit limit. Every time you make a repayment, the amount paid becomes available again for future card spending.
• Interest-Free Days: You may still be eligible for interest-free days on new card purchases if you pay the closing balance on your statement by the due date each month.
• Early Repayment: You can pay off your Coles Instalment Plan at any time, without early repayment fees.

CommBank

CommBank’s instalment plan SurePay is available to all Commonwealth Bank credit cardholders. Here’s how it works.

• Card Purchase Instalment Plan: Convert a one-off purchase of $100 or more, made in the last 14 days.
• Card Balance Instalment Plan: Convert all or part of your card balance of $600 or more (excluding cash advances, balance transfers, and existing instalment plan balances).
• Cash Advance Balance Instalment Plan: Convert all or part of your cash advance balance of $600 or more.
• Setup: Create an instalment plan in NetBank or the CommBank app by choosing the term and fixed monthly repayment.
• Costs: Costs vary between plans and cards, with the fixed interest rate and any other costs outlined by CommBank when setting up the plan.
• Multiple Plans: You can have up to 50 plans at once on each CommBank credit card in your name.
• Interest-Free Days: You may still be eligible for interest-free days on new card purchases if you pay your closing balance by the due date.
• Missed Payments: If you miss an instalment payment, the unpaid amount will be placed back on your account, where the card’s applicable rate will be applied. If you fail to make required monthly instalments for 3 consecutive months, the plan may be cancelled, and the remaining balance will revert to the card’s applicable rate.
• Plan Changes: You can cancel or pay off your plan at any time.

humm

Aside from offering 110 days interest-free on eligible card purchases, the humm90 Mastercard (previously Skye Mastercard) provides cardholders the following humm90WRAP instalment plan options.

• Interest-Free Period: Up to 110 days on eligible card purchases.
• humm90WRAP Instalment Plans: Convert card purchases of $250 or more to a humm90WRAP instalment plan, repaid over 9, 12, or 15 equal monthly instalments.
• No Interest Charged: No interest is charged on instalment plans, but a fee is applied, calculated as a percentage of the total amount payable on the card purchase selected.
• Eligible Purchases: Only eligible purchases made within the previous 30 days may be converted to a humm90WRAP instalment plan.
• Ineligible Transactions: Cash advances, balance transfers, interest, fees, charges, and commissions are not eligible.
• Missed Payments: If you fail to pay a fixed monthly instalment, interest will be charged on the unpaid amount at the card’s standard rate (currently 26.30% p.a.).
• Exclusive Offers: Exclusive instalment plan offers are available at selected retail partners.

ING

As an ING credit cardholder with an ING Orange One Low Rate Card or ING Orange One Rewards Platinum Card, you have the option of setting up instalment plans on your purchases, as follows.

• Eligibility: You can create an instalment plan on eligible amounts of $250 or more.

• Repayment Terms: Terms range from 3 months to 7 years.
• Interest Rate: ING advertises its instalment plan rate at 9.99% p.a. variable.
• Setup: You can set up an instalment plan by logging in to online banking or the bank’s app, and selecting the amount you want to convert to a plan.
• Credit Limit: All plans are included within your existing credit limit.
• Multiple Plans: You can have up to t10 instalment plans on each card account in your name, each with different terms, interest rates, and repayment amounts.
• Plan Changes: You can change the term of your existing plans at any time, up to 3 times over the first 2 years.
• Extra Payments: You can make extra repayments to your plan without paying an early repayment fee.

Latitude Financial Services

Within its card range, Latitude offers the Gem Visa and GO Mastercard. Both of these cards provide instalment plan options.

• Gem Visa:
  • Up to 55 days interest-free on purchases up to $250.
  • 6 months interest-free on purchases of $250 or more.
  • Long-term interest-free plans at thousands of participating retailers.
• GO Mastercard:
  • Up to 55 days interest-free on everyday purchases.
  • 3 types of instalment plans:
    • Equal monthly repayments.
    • Minimum monthly payment with no set repayments.
    • No set repayments or minimum monthly payment requirements.
  • Plans vary and are only available during select promotional periods

Qantas Money

As far as we were able to tell, Qantas Money is currently offering its instalment plan only to its Qantas Premier Card holders. Here’s how it stacks up.

• Statement Instalment Plan: Convert your card purchases to a Statement Instalment Plan, locking in a lower rate than your card’s standard purchase rate over a set term.
• Setup: Choose the amount you want to convert to a plan and work out the repayment term based on the plan’s monthly repayments.
• No Setup Fees: There are no setup fees.
• Additional Repayments: You can make additional repayments or pay off the instalment plan at any time, without extra charges.
• Term Changes: You can change the term of the plan, but this will change your payment amount.
• Multiple Plans: You can have more than 1 plan on your card, as long as the plans fall within your available credit limit.
• Qantas Points: Earn up to 150,000 Qantas Points when you spend $5,000 or more on eligible purchases within 3 months of approval. This offer changes frequently, so check the official Qantas Money Instalment Page for details.
• Interest-Free Days: You can keep your interest-free days on new purchases if you pay your closing balance by the due date.

St.George

Available to all St.George credit cardholders, the bank’s Plan&Pay instalment plan feature works as follows.

• Option 1: Convert a single card purchase of $200 or more made in the previous 30 days, with 0% p.a. interest over 3, 6, or 12 months. An upfront fee applies (1% for 3 months, 2% for 6 months, or 4% for 12 months).
• Option 2: Convert all or part of your credit card balance, paying it back in set instalments over 3-36 months. There is no upfront fee, but interest is charged at a rate lower than your card’s current rate.
• Credit Limit: You can have up to 8 active Plan&Pay plans at once.
• Extra Repayments: You can make extra repayments without penalty.
• Plan Changes: You can cancel or pay off your plan at any time without extra fees. The standard variable rate of interest will apply to any remaining balance.
• Availability: This feature is also available on BankSA and Bank of Melbourne credit cards.

Virgin Money

Virgin Money credit cards operate in much the same way as Coles Instalment Plans, because they're both backed by NAB.

• Card Purchase Instalment Plan: Convert cash advances, transactions, and balances to instalment plans.
• Fixed Interest Rate: Benefit from a fixed interest rate lower than your card’s standard rate, making budgeting easier.
• Setup: Create a Fixed Payment Option by signing in to Virgin Money Online and going to My Offers in Rewards & Offers.
• Multiple Plans: You can have more than 1 Fixed Payment Option as long as the total amount of all plans is within your credit limit.
• Interest-Free Days: Benefit from interest-free days on purchases if you pay your closing balance by the statement due date.
• No Additional Velocity Points: You won’t earn additional Velocity Points on your instalment plan.
• Extra Repayments: You can make additional repayments by contacting the Customer Care Team on 13 37 39.
• Plan Changes: You can change the length of your plan term or cancel at any time without early repayment fees.

Westpac

As a Westpac credit cardholder, you can take advantage of 2 instalment options offered via Westpac’s SmartPlan.

• Large Purchase SmartPlan: Convert any purchase of $500 or more made in the previous 30 days to an instalment plan over 3, 6, or 12 months with zero interest. An establishment fee applies (1% for 3 months, 2% for 6 months, 4% for 12 months).
• Setup: Log in to online banking and select either the purchase or balance you want to convert. The plan will be activated within 2 business days.
• Multiple Plans: You can have up to 8 SmartPlans at any one time.
• Extra Payments: You can make extra payments on your plans, but those payments will be applied to your card’s outstanding balance first.
• Plan Cancellation: You can cancel your SmartPlan at any time via online banking.