Buzz
Pros and Cons of Buying Phones on Installments
In simple terms, purchasing a phone on installments is a payment method where the buyer doesn't have to pay the full amount of the item at once. Instead, they only need to pay a portion of the item's cost upfront (or none at all), and the remaining amount (including interest) will be divided and paid gradually over agreed-upon periods.
This installment payment method comes with advantages such as:
– Buyers don't have to spend a large sum to acquire a product when their finances don't allow it, thereby minimizing the financial burden.
– Enjoy the opportunity to experience your favorite products without waiting too long for loan approval.
– With phone installment plans, you don't need to pledge any assets. If the value of the financed product is below 10 million VND, you don't even need to provide income proof.
However, buying a phone on installments comes with some drawbacks to consider:
– If the installment plan has interest, the total amount to be repaid will be higher than the product's selling price. The longer the installment period, the more you'll have to pay.
– Late installment payments may result in penalties according to the regulations.
Popular Methods of Phone Installment Purchases
1. Financing Company Installment Purchases
Buying a phone on installment through a financial company involves customers borrowing money from service providers (such as Home Credit, Lotte Finance, Mcredit, HD SaiSon, etc.) to purchase products based on their credibility. Borrowers don't need to pledge assets like real estate or vehicles, nor do they require notarized documents or financial proof. However, the interest rates for this method are generally higher than those of traditional banks.
The procedure for phone installment purchases through financial companies includes:
Step 1: Customers bring personal documents such as ID card, household registration book, and driver's license to the store and select the desired phone product.
Step 2: Subsequently, customers will receive advice from financial unit staff on suitable loan packages based on their financial needs.
Step 3: Once the loan agreement is finalized, the staff will process the assessment paperwork and proceed to sign the contract at the store for the customer.
Step 4: Customers receive the phone product and sign the credit contract at the store.
Note: installment buyers must be between 20-60 years old, and ID cards must still be valid. All documents provided by the borrower must be originals. After document verification, financial companies will return the documents to the customer and are not allowed to keep the originals.
2. Phone Installments via Credit Cards (Visa, MasterCard & JCB)
This is a 0% installment method through banks using Visa, MasterCard & JCB credit cards, with payments spread over 3-12 months. Buyers don't need to provide any documents for approval. To purchase a phone on credit card installments, you must be the cardholder, and your credit card must be active. Additionally, the credit card account should not be in debt, have delayed payments, and the credit limit should be higher than the installment amount.
Note: the transaction value for installments varies depending on the bank. Particularly, online phone installments through credit cards are popular nowadays due to easy and quick procedures. Famous phone retailers like The Gioi Di Dong, FPT Shop, Cellphone S, etc., offer this service. Buyers just need to visit the website, choose the desired product, select credit card installment payment, and fill in the necessary information as instructed.
