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Thread: Credit Limit & Installments

  1. #1

    Default Credit Limit & Installments

    A CC newbie. I need some help to understand how credit limit and installments work together. Say I have limit of 200 and I buy a comp at 120 at 12mths 0% interest. How much would my credit limit be??? Kind of blur on this point . TIA

  2. #2

    Default Re: Credit Limit & Installments

    credit limit is always at $200

    spend $120 on installment
    left with $80 'balance'

    if u pay back the first installment
    repay $10 to CC company
    left with $90 'balance' >> goes back to $200 once u clear your installments

  3. #3
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    Default Re: Credit Limit & Installments

    From your example, these are the figures:
    Credit limit: $200
    New purchase: $120
    Mthly installments: $10 ($120/12)
    Balance credit limit: $80

    This means that, using the same credit card, you can only sign for another purchase of up to $80.

  4. #4

    Default Re: Credit Limit & Installments

    oh ok. then I am getting the gist of it. Thanks.

    Another question. If I want to clear my debt sooner, can I say pay 30 per month instead of the usual 10 just to get back a higher credit balance?

  5. #5

    Default Re: Credit Limit & Installments

    if u are new to credit cards. Only one advice. Never use it unless u can pay the full bill end of month. End of day don't fall for those o interest and etc.... considering we are going into recession u better think about what will happen if u cannot even pay one month's installment. The interest at the end of the pile up after one year will kill you.

    Seriously alot of things that offer zero interest. Do you really need it ? or u want it.
    Last edited by aeskywan; 5th November 2008 at 12:31 AM.

  6. #6

    Default Re: Credit Limit & Installments

    Thanks for the advice.

  7. #7
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    Default Re: Credit Limit & Installments

    Quote Originally Posted by daftone View Post
    oh ok. then I am getting the gist of it. Thanks.

    Another question. If I want to clear my debt sooner, can I say pay 30 per month instead of the usual 10 just to get back a higher credit balance?
    AFAIK, the installment plan is to lock you in. You may clear your plan earlier but you may incur additional charges for that.

    :Later,

  8. #8

    Default Re: Credit Limit & Installments

    agree with pinoy

    if ur gg to buy camera equipments with installments,
    better don do it .. don be a slave to your equipment

  9. #9

    Default Re: Credit Limit & Installments

    Quote Originally Posted by soeypixels View Post
    agree with pinoy

    if ur gg to buy camera equipments with installments,
    better don do it .. don be a slave to your equipment
    Yes its very tempting, but try not to.

  10. #10
    Member Static's Avatar
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    Default Re: Credit Limit & Installments

    Quote Originally Posted by soeypixels View Post
    credit limit is always at $200

    spend $120 on installment
    left with $80 'balance'

    if u pay back the first installment
    repay $10 to CC company
    left with $90 'balance' >> goes back to $200 once u clear your installments
    Correct me if I am wrong,

    According to my understanding,if the installment is $120, ur balance credit limit would be $80 until you cleared the installment?
    陳綺貞 2010 [夏季練習曲] 巡迴演唱會 Cheer Concert 13 Nov 2010 MAX Pavilion@Singapore Expo

  11. #11
    Senior Member Canew's Avatar
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    Default Re: Credit Limit & Installments

    Quote Originally Posted by Static View Post
    Correct me if I am wrong,

    According to my understanding,if the installment is $120, ur balance credit limit would be $80 until you cleared the installment?
    No, you credit limit will 'recover' every month after each payment of the installment. (in this example, the credit limit will be restored by $10 each month, as the installment is 12 months)

  12. #12
    Member armadillo's Avatar
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    Default Re: Credit Limit & Installments

    Quote Originally Posted by Static View Post
    Correct me if I am wrong,

    According to my understanding,if the installment is $120, ur balance credit limit would be $80 until you cleared the installment?
    wrong, your credit limit will increase according the amount u pay monthly.
    Meaning, if you pay $10 this month, your credit limit become $90, etc...

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