At present, applying for credit is much easier than before. Especially with the presence of this one-credit feature innovation that makes credit transactions much easier. The credit limit or unsecured loan feature is Pay later.
Pay later is a solution for you who want to take credit installments without the need to have a credit card. Well, if you have previously failed in applying for credit, you can try Pay later. Because many people then switch to using Pay later after the credit application is rejected by the Bank.
Even now people are actively using Pay later, actually, the difference is that credit cards are physical, and Pay later is an application. But both have the same function as unsecured money loans for people who apply for credit.
Credit Cards VS Pay later, Which Offers Lower Interest
Credit cards and pay later certainly have different interest rates. Bank Indonesia provides a maximum credit card interest requirement of 2.25%, and the Bank may not apply interest rates far above the 2.25% rate.
In addition to several credit cards, you are given a 0% interest facility on the installments you take. There is only a condition, that is if you buy goods at a merchant that has cooperated with the Bank for an installment program with 0% interest.
In addition to that on a credit card, you can also continue to use the 0% interest facility as long as the credit card installments that you pay before maturity or when they are due. If you pay after the due date, then you will be given a total interest of 2.25% and penalties for the late payment of credit card installments.
Meanwhile, for pay, later interest, specifically for E-Money Pay later applying an interest of 2.9% per month, Pay later Traveloka which is from 2.14% to 4.78% per month, Pay later is an interest of 25 thousand per month, and Good Credit interest 0 percent up to 2.95 percent per month.
Pay later also has 0% interest, such as credit cards, only for the condition that the installments must be paid in installments for 1 month.
Longer Credit Card or Pay later Tenor Installments?
Speaking of tenor installments, there must be people who want the installments to be given a longer time, but there are also people who want a tenor or a short time so they can quickly repay a debt to the Bank.
But in fact, even though the tenor is long, you will still be charged an interest fee that will automatically increase your loan installments. But there are also those who choose a short tenor so they can quickly pay credit installments and the fees are not too large with interest costs. Credit card installments generally start from 6 months, 3 months, up to 12 months. There are also up to 18-24 months.
In contrast to credit cards, the pay later tenor gives a maximum time of 12 months. Ana can also get tenors faster for Pay later such as 1 month, 3 months, or 6 months at Pay later.
More Credit Card or Pay later Fees?
Well, this is the most important for you who want to apply, whether credit card / Pay later. How much does it cost and more for a credit card or Pay later? Next, we will explain the details.
For credit cards, you will be charged an annual fee that you must pay regularly every year. And the amount of this fee varies by each bank. As an example of the type of credit card several banks below with the amount of annual fees.