23-04-2012, 07:52 AM
What a dumb card - it actually splits up the purchase amount into installments to ensure you drag your payment longer! But I guess that's the aim of the bank - make you spend more with this credit card, and hope you "forget" to pay so that they can charge you 24% p.a.!
The Straits Times
Apr 23, 2012
New OCBC credit card 'likely to encourage spending'
By Lo Yee
OCBC Bank has come up with a novel new credit card designed to help consumers pay off their purchases over several months - and interest free to boot.
But consumer groups are warning card users to make sure that they have enough funds to cover the payments before signing up for the card.
The new OCBC Cashflo, launched yesterday, allows cardholders to pay off any purchase sum above $100 over a period of three or six months, interest-free.
They are entitled to a six- month instalment plan for purchases from major local department stores such as Robinsons and Takashimaya, certain luxury boutiques, insurance companies, travel agencies and any overseas spend.
For all other purchases, cardholders will be able to spread the full payment over a period of three months.
OCBC will automatically divide the purchase sum involved into three or six equal monthly instalments - but it is up to the customer to make the payment and ensure that he has enough funds to do so.
Customers can nominate the minimum spend figure at which the instalment plan will kick in, though this needs to be in multiples of $100.
OCBC Cashflo card members will get cash rebates of up to 1 per cent for any purchase. The annual fee of $64.20 will be waived for the first two years.
'I think this will certainly encourage consumer spending as they can better manage their cash flow,' said Mr Seah Seng Choon, executive director of the Consumers Association of Singapore.
But he also urged cardholders to be prudent in doing so.
'They should be committed to servicing their instalment payments before taking up the offer.'
Cardholders who default on their payments will be charged a 24 per cent interest rate on the outstanding amount. Most other credit cards attract similar interest rates on unpaid amounts.
The Straits Times
Apr 23, 2012
New OCBC credit card 'likely to encourage spending'
By Lo Yee
OCBC Bank has come up with a novel new credit card designed to help consumers pay off their purchases over several months - and interest free to boot.
But consumer groups are warning card users to make sure that they have enough funds to cover the payments before signing up for the card.
The new OCBC Cashflo, launched yesterday, allows cardholders to pay off any purchase sum above $100 over a period of three or six months, interest-free.
They are entitled to a six- month instalment plan for purchases from major local department stores such as Robinsons and Takashimaya, certain luxury boutiques, insurance companies, travel agencies and any overseas spend.
For all other purchases, cardholders will be able to spread the full payment over a period of three months.
OCBC will automatically divide the purchase sum involved into three or six equal monthly instalments - but it is up to the customer to make the payment and ensure that he has enough funds to do so.
Customers can nominate the minimum spend figure at which the instalment plan will kick in, though this needs to be in multiples of $100.
OCBC Cashflo card members will get cash rebates of up to 1 per cent for any purchase. The annual fee of $64.20 will be waived for the first two years.
'I think this will certainly encourage consumer spending as they can better manage their cash flow,' said Mr Seah Seng Choon, executive director of the Consumers Association of Singapore.
But he also urged cardholders to be prudent in doing so.
'They should be committed to servicing their instalment payments before taking up the offer.'
Cardholders who default on their payments will be charged a 24 per cent interest rate on the outstanding amount. Most other credit cards attract similar interest rates on unpaid amounts.
