Here are 6 advantages of buying in installments today.
Installment purchase service providers are fully integrated in the online store checkout, making the transaction process easy.
Simply choose to pay with the installment purchase provider listed on the online store at checkout, instead of your standard credit card. That's it.
Or you can register for direct installment purchases of physical products such as smartphones, laptops, televisions, washing machines, air conditioners, refrigerators, etc. on Movi's application available for Android and iOS.
They will arrange the payment plan and email it to you. Once you've created an account, purchasing through an installment purchase provider is almost automatic.
Setting up an installment purchase account is simple, usually taking no more than a few minutes of your time.
Unlike using a credit card, installment purchase vendors do not pre-approved credit checks. The supplier only needs to ask for some information, including the account from which they will deduct your payments.
The steps to set up an account are what you would expect to find when signing up to any other site, for example:
Most installment purchase providers don't charge any interest on the amount you borrow - only when your payment is late. This can happen, for example, you don't have enough funds in your trading account during the scheduled automatic charge period or before the due date.
At Movi, customers can pay 0% interest installment with a payment cycle of 3 to 6 months for 1 order.
It can be difficult to create and stick to a payment plan, so installment purchasers often do it for you by doing things like dividing the total amount of your bill into four installments. equally every two weeks.
These will then automatically be charged to the debit or credit card you specified when they are due. All you need to do is make sure you have enough funds in your account, or you will be charged late fees.
A report by the Reserve Bank of Australia shows that more and more Australians are giving up credit cards. In May 2020 alone, Australians dumped more than 100,000 credit cards, bringing the number of active cards back to levels not seen since 2009.
Young people in particular are giving up credit cards. Twenty years ago, about 60% of people between the ages of 20 and 35 owned a credit card, while the figure in the same age group today is less than 40%.
On why young Australians are giving up credit cards - they outline the risks and costs. So they are increasingly turning to installment purchase platforms.
If you are someone who regularly uses credit cards to make purchases, otherwise you won't be able to afford them, switching to installment purchases seems to be a better option as you will avoid paying the amount of interest. High usually comes with credit cards.
Just to be clear, you should still stick to your budget and make sure you can afford to pay off your installment purchases.
No need to queue at the bank or log into your online account to make payment arrangements. They will be automatically deducted from the trading account you specified during registration.