Armaan Resales Payment Types

Pay over time

Splitit exists to help consumers use their favorite credit card to turn purchases into smaller, monthly payments using their existing credit card.

At the time of purchase, we charge the first instalment. However, at the same time we also authorise the whole outstanding amount in order to guarantee future instalment payments. Authorisations for the full outstanding amount are renewed every 21 days or so and reduce with each instalment payment made. The previous authorisation is automatically removed as soon as we receive the new one.

Since it’s your credit, there are no applications or credit checks that affect your credit score and make things complicated to slow you down at checkout. And you continue to earn your points and rewards.

 

What orders are eligible for Splitit?

  • Splitit is unavailable on orders below £350
  • On orders between £350 and £999 you can split your payment over 3 months with Splitit.
  • On orders between £1,000 and £7,000 you can split your payments over 6 months with Splitit.
  • Splitit on orders over £7,000 is by application only.

Still unsure, let’s explore more?

  • You have a Credit Card with a £2,000 credit limit on it, and you have not used any of that £2,000 limit so far.
  • You want to buy a £1,200 computer from Punch Technology over 6 monthly payments of £200.
  • Splitit takes a pre-authorisation for the full £1,200, so you cannot spend that money on anything else. However, it only charges you £200 that month, so at the end of the month, you only need to pay your credit card provider £200, not the full £1,200. This leaves you with £800 of your credit limit to spend on something else*
  • Then next month the pre-authorisation is for £1,000, and the next month’s charge is another £200. This leaves you with £1,000 of your credit limit to spend on something else*
  • Then next month the pre-authorisation is for £800, and the next month’s charge is another £200. This leaves you with £1,200 of your credit limit to spend on something else*
  • Then next month the pre-authorisation is for £600, and the next month’s charge is another £200. This leaves you with £1,400 of your credit limit to spend on something else*
  • Then next month the pre-authorisation is for £400, and the next month’s charge is another £200. This leaves you with £1,600 of your credit limit to spend on something else*
  • Then next month the pre-authorisation is for £200, and the next month’s charge is another £200. This leaves you with £1,800 of your credit limit to spend on something else*
  • At this point, there is nothing left to pay, and you have your full £2,000 credit limit back*
  • As long as you pay the monthly £200 off your credit card, you will not get charged any interest by your card provider, and there are no additional fees for this service.
  • * as long as you haven’t gone and already spend your remaining credit limit on something else*

I don’t have a credit card, can I use my debit card?

Sorry, you cannot use a debit card, but you would not want to anyway! Find out more…

The way Splitit works, a hold is put on all the funds required to pay for the order, but you are only billed an instalment once a month. So you only owe your credit card issuer the instalment at the end of the month, not the full amount. However, you are not able to spend the rest of the money owed on something else, as those funds are held to cover the rest of the instalments.

I don’t get it, why would I want to use Splitit?

Using our example above of buying a computer for £1,200:

If you buy it on your credit card WITHOUT SPLITIT, at the end of the first month you would owe your credit card issuer £1,200, or you would have to incur interest if you don’t pay it off.

If you buy it WITH SPLITIT, you would not be able to spend the £1,200 on anything else, but at the end of the first month you would only owe your card issuer £200, or you would have to incur interest if you don’t pay it off.

In the example on this page, you would owe £200 per month for 6 months until the plan is paid off.

But I need the rest of my credit card balance to get through to the end of the month!

Then Splitit is not the best payment method for you, as it is really a way to use spare credit card limits to buy. You should explore a full finance option, with a credit agreement looking at your ability to meet the monthly payments (see the finance tab above).