Some banks charge an early settlement fee of up to 275 dirhams

Two bankers advise calculating fees and interest before paying credit card purchases

Approval of the installments is done over the phone and does not require a signature or new documents.

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Two bankers said that the banks, in cooperation with major outlets, offer the advantage of installment purchases using credit cards, especially those whose value exceeds 1000 dirhams, in order to facilitate customers on the one hand, and to promote these outlets on the other hand.

They explained to "Emirates Today" that the installment of purchases is beneficial to the customer, provided that two important things are taken into account: the first is to know the interest rate, and the second is to ensure the fees imposed, especially early payment fees, noting that some banks impose an early payment fee of up to 275 dirhams, bringing the total amount The repayment, interest and fees are large, compared to not resorting to installments.

They advised customers to inquire about the fees imposed and the interest rate in detail before agreeing to the installment procedures.

Purchase Installment

The banker, Mohamed Ghazi, said that many large sales outlets are cooperating with banks to offer installment offers for purchases that were paid using credit cards, especially if the amounts are large and exceed 1,000 dirhams, for example.

He added that the installment period usually extends between three and 12 months, with an interest rate of less than 1% in most banks, pointing out that this service includes an advantage for the customer as long as it is without fees.

Ghazi advised customers to inquire about the fees imposed in detail, before agreeing to the installment procedures, especially that they are done over the phone, and do not require a signature or new documents that are not registered with the bank.

He continued, "It is also important to ascertain the value of the fees imposed when choosing this service, especially the early payment fee, which amounts to 275 dirhams in some banks, while the fee in other banks is free."

Shared benefits

For his part, the banker, Mustafa Ahmed, said that the customer usually resorts to installments if the value of purchases is large, such as for electronics, or paying school fees or furniture, pointing out that sales outlets facilitate payments in cooperation with banks, to promote their goods and attract customers, while the banks benefit. On the other hand, customers frequently use the credit card.

Ahmed advised dealers to pay attention to the fees and the interest rate imposed in installment operations, while calculating this as a total value with the original amount due, to decide whether they prefer the installment method, or full payment of the amount due on purchases.

He pointed out that the “interest” is usually low, but all details must be confirmed, especially since the offer comes over the phone, and here it must be emphasized on the application of what was talked about, such as the interest rate, the value of fees, and the payment period, pointing out that some dealers Surprised that there are often differences.

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