An example of the installment facility
It was a long and gray winter, and Ms. Miller is now longing for a few days in the sun on a nice sandy beach. She decides to go sunbathing on an island in the Mediterranean for two weeks.Ms. Miller has a Bonviva American Express credit card (annual percentage rate of 14.75%). With her credit card, Ms. Miller can go ahead and book the trip at a total cost of CHF 2,100.
Thanks to the installment facility activated by Ms. Miller, she is free to choose from several payment options on the basis of her personal financial planning arrangements. She could pay the whole amount all at once. Or she could pay CHF 700 now and the remaining amount in two equal installments. Or she could decide on the amount of the individual installments on a month-by-month basis.
Of course, at any time she can pay off the whole remaining amount at once. Thus, Ms. Miller is soon breathing in the sun and energy, adjusting the payment of her two weeks’ vacation to her personal priorities.
And these are the costs for Ms. Miller for the two weeks in the sun, if she decides to pay in three equal installments*:
Price for vacation CHF 2,100
Number of monthly installments 3
Interest cost for the installment facility approx. CHF 52*
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Total cost of vacation approx. CHF 2,152*
Monthly amount (rounded) CHF 717
* This is a simplified and rounded example based on the Bonviva American Express credit card (annual percentage rate of 14.75%). The calculation is non-binding and may differ from the actual interest invoiced. The provisions of the credit agreement and the General Terms and Conditions (GTC) apply.
