When Should You Pay Your Down Payment with Credit Card

If you are looking to pay a down payment, let me congratulate you on your loan approval.

At this stage, is all about paying all the outstanding payments to finalize the deal. It is time to take out your hard-earned money to close the deal.

Traditionally, we pay our down payment using cash and with no benefits earned in the process.

Today we will talk about how can you use your credit card instead to pay for your down payment, what benefits you can get from it, and also when you should use it.

What is Down Payment?

A down payment is an upfront payment you make when you are making a big purchase such as a car or house. You usually are required to pay 10% of the total price and finance the remainder with a loan.

Let’s say you want to buy a house that cost RM400,000, you need to be able to put a down payment of at least 10% of the total price (RM40,000) to secure a bank loan.

Can You Pay Your Down Payment with Credit Card?

The answer is yes! With jomSETTLE, you can pay your down payment with credit card. To make a payment, you only need to create an account with jomSETTLE and fill up your down payment details together with the supporting document. Once you complete the payment with your credit card, we will then make a bank transfer to the recipient within 3 working days.

Do take note that there will be a one-time 2.5% fee on top of the amount that you want to pay.

When You Should Pay Your Down Payment with Credit Card?

1. When you are sure that you have enough to repay your credit card when your statement is due.

Credit card is a very good short-term financing tool. In this case, we can use it to pay for the down payment first before we actually spend our cash in hand. So, be sure to bear in mind that if you plan to pay your down payment whether partially or in full with your credit card, always make sure that you have enough cash to clear the outstanding balance at the end of your billing cycle.

Also Read: How to Read and Understand Your Credit Card Statement.

💡Pro Tips: You should only use your credit card for down payment when you are sure that you have enough cash to repay the card when the payment is due.

2. You want to earn credit card reward points.

With such a large purchase, it will be a waste to not earn all the air miles from it. Accumulated air miles can be exchanged for a travel ticket for your next holiday or you can use the reward points to redeem for some useful appliance for your new car or house. – Paying your down payment and earning rewards at the same time.

Also Read: What Can You do with Your Credit Card Reward Point

💡Pro Tips: The value of the reward points you earned can even offset the 2.5% transaction fee.

How to Pay Down Payment with Credit Card

Here is a guide on how you can pay your down payment using your credit card through jomSETTLE:

Firstly, you can sign up for a jomSETTLE™ account here or log in.
Choose Personal Account to proceed.
Complete a one-time e-KYC process for verification.
To pay the down payment, go to make payment and choose ‘down payment.’
You will need to include documents such as invoices, agreements, or related documents as proof.
Choose a credit card payment method and pay with your preferred card. We accept all local and foreign issued cards. (*For foreign cards, users must have a Malaysian phone number)
jomSETTLE will transfer the payment to your recipient account via bank transfer within 3 working days.

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