Need info on 0% Installment

[Caussway]

Hi folks appreciate any feedback from those've purchase anything through
the current 0% installment offered by DBS/POSB /
Diners Club. Any additional charges ? A camera shop told me I
need to top-up 4%. But when I check with Diners Club
they said they don't charge anything extra.

 

[Darren]

Moved to Consumers Corner as this is an enquiry and not buying/selling anything.

 

[blurblock]

Hi folks appreciate any feedback from those've purchase anything through
the current 0% installment offered by DBS/POSB /
Diners Club. Any additional charges ? A camera shop told me I
need to top-up 4%. But when I check with Diners Club
they said they don't charge anything extra.

Of course Diners Club says they don't charge you extra lah .... they only charge the shopkeeper only mah. For the camera shop, the 4% they will be paying will either goes to Diners Club or GST. So they will tell you the 4% will be charge as GST if you use VISA/Mastercard/AMEX/Dinner/JCB to pay ;P. They will tell if orginally they absobe the GST, but if you are going to pay through Cards, they will be unable to asbobe 8%, thus they will have to charge you 4%.

 

[Minority]

Another thing you have to be aware of is when is ur diners card up for renewal? Coz if you stretch ur loan say maybe 24 mths. canceling the card and perform a lump sum payment has it penelites. Some card company charge say $100 per out standing entry so for example you have 6 more months outstanding you have to pay extra $600 bucks to cancel ur card. So be aware of the carveats before you sign on the dotted line.

 

[tomcat]

Hi folks appreciate any feedback from those've purchase anything through
the current 0% installment offered by DBS/POSB /
Diners Club. Any additional charges ? A camera shop told me I
need to top-up 4%. But when I check with Diners Club
they said they don't charge anything extra.

If you buy from a big departmental store like Best Denki or Harvey Norman at the recommended retail price which is inclusive of GST, there is not additional charge for 0% credit card installment schemes.

But if you buy from smaller retail stores that offer a discount off the recommended retail price for cash purchases, then there could be additional charges if they have similar arrangements with credit card companies for similar 0% installment schemes. Also, some shops quote prices that are not inclusive of GST to make it sound cheaper and may not tell you unless you ask until it's time to pay up. So if the price quoted to you from that shop is without GST, then the extra 4% could be just that too.

 

[blurblock]

oh, for those who price are tagged, they will tell you the price tag on the product are for cash terms only as they are "absobing" GST. Paying will card, they will have to charge you for GST... next year even better, they will charge you 5% if you pay by credit cards.

 

[reachme2003]

My two cents' worth.

Do not get into debt. If you can afford it, pay cash in full OR by credit card but pay in full when due. DO NOT pay by instalments or pay 5% minimum sum and carry forward the debt.

Too many Singaporeans are getting in debt. Banks are writing off about $100 millions of bad debt from credit card business alone. It is common knowledge that banks will not hesitate to pursue legal recourse against debtors, including petitioning for their bankruptcy.

In today's Straits Times reported that MAS is clamping down on 'casual' card applications. Personally, I think this move is unnecessary. Unfortunately, Singaporeans, in general, are not 'smart' financially, forcing MAS to intervene in this manner.

 

[Caussway]

Hi folks, any info on 0% installment
offered by credit card companies like
DBS / POSB / Diners. A camera company
told me that I need to top-up 4% to
use apply for 0% installment. When
I call Diners they told me they don't
charge anything extra.

 

[blurblock]

Look at your own thread :-

http://forums.clubsnap.org/showthread.php?t=54306


Try not to duplicate Thread, save valuable space.


With the Moderator close this thread, duplication.

 

[Caussway]

That 4% extra is on top 4% GST. I think I got the
card early this year with 3 years waiver.

 

[blurblock]

That 4% extra is on top 4% GST. I think I got the
card early this year with 3 years waiver.

hehehe .... did they tag 4% GST inclusive on the tag? No right? Then they can claim that that is for cash term only. If you choose to pay by Credit Card, they "will not" be able to absobe the GST thus charging you 4% for the GST.... which esstentially is the amount Diners is charging them.

It is not an acceptable practice , or rather forbidden by the card issuer, to collect the amount they charge from Shop owner to pass on to card holder, as this will make cardholder relucdent to pay through Credit cards. However, no one can stop them from collecting GST from cardholders .... since the GST amount is similar to what the Credit card's issuer charging they will claim that they are collecting GST.

However, if they says GST is already included, then they cannot charge another 4% to you. Please not big shops like Havey Norman, Best ... etc etc .... do not charge 4%, but their selling price for the same equipment is based on Retailer's Recommend price and not the street price, thus significantly more expensive then neibourhood shops ..... Take your own pick.....

 

[Terence]

The shop in question wouldn't happened to be located in Marina Square would it? ---- Snap?

The credit card 0% installment SHOULD NOT incur any additional charges on your behalf. The arrangement is worked out between the credit company and the merchant and does not require buyers to pay anything on top of the purchase price agreed upon.

 

[Caussway]

Thanks guys, I've a better idea now. :thumbsup: :thumbsup: