How credit card installments work
Credit card-linked installments are a payment method that lets you split the cost of a purchase into smaller, manageable payments over time, leveraging the available credit on your existing credit card.
There are two main types of credit card installments:
At checkout:
You choose installments during the checkout process. Splitit is built into the checkout and you pick your plan length, enter your card details, and the plan is confirmed immediately.
Post purchase
Some card issuers offer installment plans after you complete checkout. If you select one of their offers, you will manage it in your banking app or online portal. Eligible transactions, plan lengths, and any fees are set by your issuer.
Both routes use the credit card you already carry and avoid a new loan or a second account to manage.
Credit card installments vs. BNPL
Traditional BNPL products create a separate credit agreement, while credit card installments use your existing card relationship. The exact application, credit-check, reporting, and fee terms depend on the provider and chosen plan.
| Feature | Traditional BNPL | Credit card installments |
| Source of Credit | Creates a new loan/line of credit | No new loan, uses your existing credit card limit |
| Credit Checks | Often requires a soft (and sometimes hard) credit check | Does not require a credit check |
| Rewards & Points | Some BNPL providers offer their own reward schemes | Collect your credit card reward points as usual while paying over time. |
Benefits of using Splitit
If you choose Splitit, it uses the credit already available on your card and shows the exact plan cost before you confirm. Here’s what that means for you:
- Card rewards: All purchases paid with credit card installments continue to earn points, miles or cashback, as per your card issuer rules and rewards program.
- No new loan: credit card installments do not open a new loan or separate credit account.
Pay smarter using Splitit
Credit card installments give you another way to spread a larger purchase using a credit card you already have. Before choosing a plan, check the payment schedule, total cost and how much available credit it will use, alongside the terms of your existing card.