Installments without a credit card are a trend among people who want to own an item but don’t have a credit card. They don’t have credit cards for various reasons.
One of them, do not want to because they are afraid of credit card traps. Though the trap is a myth. Credit cards are a means of payment. Before making a transaction, you have to think about how you will pay it back and how much the debt limit is covered. Not just playing string.
Another reason is failing to apply for credit cards constantly. Maybe they still have loan dependents at the bank so that credit card applications don’t pass. Or there could be conditions that are not met.
To be sure, credit without a credit card can be the answer for this group of non-credit card users. The question is, is this installment without a credit card profitable or even profitable?
Installment Options Without a Credit Card
A series of platforms provide installment services without a credit card for online transactions. This platform does not require neko-neko terms. The important thing is there is an identity card and a photo of yourself that guarantees the authenticity of identity.
You can search for a credit platform application without a credit card on a smartphone and download it to directly use the service. The application has worked with the marketplace or online store.
Thus, when you shop at the buying and selling site and have registered on a credit application without a credit card, the transaction can be completed in installments. But each platform has its own rules, for example about the ceiling and interest rates.
The mechanism applied by the ceiling question platform is to see the user’s payment history. For example, for the first use, the ceiling is only $2 million. But after using it a number of times and the repayments are always paid off on time, you can ask for a ceiling increase, for example to be $5 million.
The more disciplined and often you use their services, the greater the possibility of ceiling increases. This is certainly important if you want to buy items that are more expensive.
Installment platforms without credit cards that move offline
This platform is targeting a more senior generation, who are not too tech savvy. For this type of credit without a credit card, the conditions are different. You must submit a copy of your ID card in accordance with the domicile of the store. For example, a store in Bekasi, means a resident card also produced by Bekasi. In addition, there is a home survey process to ensure identity authenticity and credit worthiness.
The ceiling provided will be adjusted to the price of the items to be purchased. For example you want to buy a refrigerator for $ 5 million, meaning that the ceiling follows that price. Usually this platform asks for down payment terms. As for the online platform there are those who ask for a down payment and some are not.
Installments Without Credit Cards vs. Credit Cards
Characteristically, these two types of credit are very different. Both require interest. But credit card interest is clearly regulated in Bank Indonesia regulations. This regulation can change according to the regulator’s policy. While the interest on installments without a credit card is determined by the credit provider.
One other thing: there is a 0 percent installment service if you have a credit card. This is different from installments without a credit card. Some provide 0 percent interest, but are limited to payments of a maximum of 30 days or a month.
The approval process of 0 percent installments with a credit card is even easier. As long as the price of goods is within the limit, the installment process will be agreed. There is no process of sending an identity card or survey home.
Now, talking about profit or loss if you use a credit service without a credit card, it is passed away to each other’s personal. In general, this service is beneficial because you can have an item in advance even if you haven’t paid it in full.
For example, your mobile is damaged, while funds are limited and do not have a credit card. Installments without a credit card can be used to buy a new cell phone.
Credit scheme without a credit card
Even so, there is one thing that can make you disadvantaged if you buy using a credit scheme without a credit card, which is not looking at the costs incurred and not calculating the ability to pay.
Costs such as administration, down payment, and especially interest must be calculated first. More than that, the ability to pay must be considered to find out how many installments and tenures are in accordance with financial conditions.
If you are able to repay a cellphone worth 3 million, for example, you should not force yourself to take the 5 million even though there is a limit to that amount. Just like having a credit card, it requires policies and carefulness in managing expenses when they want to buy goods using an installment scheme without a credit card in order to get profit, rather than profit.