CIBC has released an industry-first product that allows clients to convert credit card purchases of $250 or more into installment plans. The CIBC Pace It offer will allow customers to spread out payments over a fixed term of six, 12, or 24 installments, at a lower rate than their interest rate.
CIBC’s Pace It offer is available on most CIBC personal credit cards, allowing clients to enjoy the benefits of their current card while having more payment options. Cardholders simply log into their account online or in the app, choose the installment plan that suits their needs and convert the purchase.
Edward Penner, Executive Vice-President, Personal Banking Products, CIBC, said in a news release, "We understand that spending can vary from month-to-month, particularly when you have large or unplanned purchases. CIBC Pace It is a simple solution that brings flexibility to our clients' lives by letting them manage the payment of the big things that matter, at a pace that better fits their lifestyle."
Eligible CIBC cardholders can choose different payment terms and rate options that fit their lifestyle. CIBC Pace It currently offers three installment plans:
Current customers can access all their regular card benefits and make purchases within their existing credit limits, without requiring approval or a new credit card application. However, the one-time installment fee will be deducted from the available credit.
While this is an appealing feature and customer choice is always a plus, there are a few features Canadian consumers should be aware of:
Cardholders who have made an eligible purchase of $250 or more, will see an “Eligible for Installments”, label within their online transaction history. Next, an installment plan is chosen, at which time a one-time installment fee of 1.5% of the purchase is shown.
If for example a cardholder makes a $300 qualifying purchase, and installment plan would look something like this:
Cardholders will see the minimum payment on their credit card increase by the monthly installment payment amount once a plan is selected. Multiple installment plans can be set up as well as cancelled at anytime.
To qualify for the CIBC Pace It offer you must:
CIBC is the first major Canadian bank to allow this offer with more sure to follow.
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