How to pay in installments with a credit card: the solution to lack of liquidity

If you’ve noticed that your expenses have skyrocketed this month, you’re not alone. Millions of people turn to credit cards precisely because they offer flexibility in payments and different methods to finance purchases, which allows you to better balance monthly expenses.

One of the most used options is the installment paymentwhich allows you to divide the cost of a purchase into several monthly payments instead of paying it all at once. However, it is important to remember that this facility usually involves additional interestsso it is advisable to carefully evaluate whether it is worth it.

Ways to defer credit card payments

Not all financial entities offer exactly the same mechanisms to split payments, and The availability of each option depends on the bank or the card issuing entity. Among the most common forms are:

• Payment in fixed installments: This method allows you to convert a purchase made with a card into fixed monthly payments. Each installment includes part of the agreed principal and interest. It is a convenient option because it allows you to know exactly how much will be paid each month, which makes financial planning easier.
• Credit transfer to current account: Some entities allow part of the credit available on the card to be transferred to the user’s checking account. Once this transfer is made, you can use the money freely and return it in monthly installments. This can be useful if cash is needed for various expenses or payments that do not accept cards.
• Request for additional credit with fractional repayment: In this case, the bank grants an extra amount of credit that is returned in installments. This is usually a formal process that requires evaluation of the client’s payment capacity and approval by the entity.

Limits and conditions of installment payments

The number of operations that can be deferred and the amounts available depend mainly on the relationship you have with the bank. Entities usually evaluate your solvencythat is to say, your usual ability to meet payments, and they will establish credit and deferral limits based on that calculation.

Therefore, customers with a solid payment history and a stable relationship with the bank can access greater facilities than those with less seniority or limited financial history.

It is essential to keep in mind that Every postponement carries a cost in the form of interest, which varies depending on the entity, the duration of the payment and the amount financed. Knowing this cost in advance allows you to make more informed decisions and avoid unpleasant surprises on your card statement.

How to postpone

Nowadays, most banks offer the possibility of requesting payment deferral through its digital platforms, either from the web or from the mobile application. This option is usually quick and convenient, and allows you to calculate the monthly payment and the total number of payments with a couple of clicks. Nevertheless, It is also possible to go to a physical office if face-to-face treatment is preferred or if the digital procedure is not clear.

To help users, the Bank of Spain has an online simulator that allows calculate approximately what the monthly payment would be, the total term and the interest associated with a deferral. This tool is useful for comparing options and better understanding the true cost of splitting a payment before committing.