How Installments Cultivate Financial Management Habits
According to Mastercard and Visa, over 95% of Vietnamese are aware of the installment method, and 87% of those surveyed have utilized such plans. Young people, especially Gen Z, make up a significant portion of this group, as installments cater to their need for instant gratification without the wait.
Today’s youth aspire to own multiple high-tech gadgets, travel the world, and invest in education and international certifications to enhance their skill sets. However, not everyone can afford to make such large purchases upfront. As a result, young people often consider installments as a way to acquire their desired items, sacrificing a small amount (interest and fees) for more significant opportunities.
Hoai Nam (24, Ho Chi Minh City), who recently purchased a new phone and laptop worth almost VND 60 million through installments, exemplifies this mindset. He needed the devices to increase his productivity in his graphic design job and his side hustle as a video editor. “The opportunities, income, and experiences I gain will undoubtedly outweigh the cost,” Nam asserts.
From a Gen Z perspective, buying items outright can sometimes be seen as wasteful, squandering money that could be set aside for emergencies. Through installments, Gen Z individuals are cultivating good financial management habits for their future. For Tu Chau (23, Hanoi), this means developing skills to gauge her earning and spending abilities, opting for longer installment periods of up to 36 months, and maintaining discipline to make payments on time.
“A VND 50 million orthodontic treatment to regain my confident smile was truly worth it, but it was also a financial burden,” Chau shares. “However, by using my VIB credit card and spreading the installments over 36 months, the monthly payment of VND 1.4 million is manageable. Plus, I earned VND 1.5 million in rewards through the card’s point system.”
All Expenses Can Be Installment-ed for up to 36 Months with VIB Credit Cards
Similar to Hoai Nam, many young people are taking advantage of VIB’s credit card offerings, which provide the benefit of 0% interest rates. VIB has partnered with over 120 major brands to offer this 0% interest program, including 25 leading technology companies, with select partners offering installments of up to 36 months.
VIB credit cardholders enjoy a wide range of flexible installment options for tech purchases, with periods ranging from 3 to 36 months. These options are available when buying directly from prominent brands (such as Samsung, LG, Daikin, and Sony), through electronics systems (including CellphoneS, FPTShop, Di Dong Viet, Phong Vu, and Thien Nam Hoa), or via linked payment gateways (such as MPOS, VNPay, VIMO, and Onepay).
After purchasing new tech gadgets, cardholders often consider signing up for high-speed internet, mobile, and cable TV packages. A clever way to reduce these bills is to opt for packages with longer durations of 12 to 36 months, as some providers offer additional free months within this range. Cardholders can then use their VIB credit cards to pay in installments via payment gateways such as Onepay, Bao Kim, MPOS, Ngan Luong, VIMO, Payoo, Paydi, Omipay, VNPTPay, VNPay, FPT Pay, and Smart Pay.
Gen Z individuals can also elevate their lifestyle through VIB’s extended installment periods of up to 36 months for healthcare and wellness offerings. They can avail of orthodontic or cosmetic dental services at Win Smile Dental, invest in NuSkin’s skincare and beauty devices, focus on their physical well-being at Elite Fitness, or get vaccinated at VNVC, all with 0% interest through their VIB credit cards.
This summer, exploring new destinations becomes more accessible with special installment privileges on Bamboo Airways flights, Traveloka tour packages, and hotel bookings through Green Holidays, VietNam Holidays, and Vega Holidays. Learning English at ILA, Apollo, or the British Council, or purchasing high-value items on Shopee or Lazada, can also be achieved through 36-month installments without delay.
With each expense, VIB cardholders accumulate reward points or cashback benefits. The Online Plus 2in1 card offers up to 6% cashback, the Super Card provides up to 15%, the Ivy Card gives 1% for all spending, and the Rewards Unlimited and Family Link cards allow for attractive reward point accumulation. The Premier Boundless and Travel Élite cards cater to frequent flyers with Vietnam Airlines mileage rewards.
While the benefits and advantages of installments through credit cards are numerous, financial experts advise that installment payments should not exceed 30% of one’s stable monthly income. Consumers should also maintain discipline in making payments on time to avoid late payment fees. Additionally, keeping track of account balances, card limits, and payment schedules is essential to ensure full and timely repayment of installment loans.
Applying for installments with VIB credit cards is straightforward and swift, with no paperwork or income verification required. Cardholders have three convenient options: applying directly at participating merchants, visiting websites or online shopping applications to select installment payments with their card, or making a regular card purchase and then converting it to installments afterward through MyVIB digital banking, VIB’s AI Bot at 1900 2200 or 1800 8195 (toll-free for Diamond customers).
Open a VIB credit card today and experience the convenience of up to 36-month installments, along with a host of other exclusive benefits.
