How to Convert Purchases to Installments with UnionBank Credit Card
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How to Convert Purchases to Installments with UnionBank Credit Card
Turn big purchases into easy, budget-friendly monthly payments.
💡 Introduction: Why This Matters
If you’ve ever wanted to buy a new phone, laptop, or appliance but hesitated because of the big upfront cost — don’t worry, you’re not alone.
Many Filipinos, especially first-time credit card users, think a credit card is only for “luxury” spending. But in reality, one of the most useful benefits of a UnionBank Credit Card is its Installment Conversion feature — it helps you manage your budget while still getting what you need right now.
In this guide, you’ll learn:
How to convert your credit card purchases into installments
The step-by-step process
How interest and payments are calculated
Tips to avoid common mistakes
Let’s break it down simply and clearly.
🏦 What Does “Convert to Installment” Mean?
When you use your UnionBank Credit Card, all your purchases are billed in full by default.
But with the Installment Conversion program, you can choose to pay that purchase in smaller monthly payments instead of one big amount.
🔹 Example:
You bought a ₱24,000 laptop using your UnionBank Credit Card. If you convert it to a 12-month installment, you’ll only pay around ₱2,000 per month, plus minimal interest — instead of ₱24,000 all at once.
That’s easier on the wallet, especially if you’re managing monthly bills or a fixed income.
⚙️ How It Works: The Basic Idea
Make an eligible purchase using your UnionBank Credit Card.
Convert that purchase to installment through the UnionBank app, website, or hotline.
Choose your payment term — from 3 up to 36 months (depending on promo and eligibility).
UnionBank charges a small monthly interest (usually 1–1.5%).
You pay the installment amount every month along with your regular statement.
So instead of stressing about one-time payments, you spread the cost — and maintain good cash flow.
✅ Requirements for Converting to Installment
Before you can apply, make sure you meet these conditions:
Requirement
Description
Eligible Card
Any active UnionBank Credit Card in good standing
Minimum Purchase
Usually ₱3,000 and above (per transaction)
Payment History
Must not have past due or delinquent balances
Available Credit Limit
Your remaining credit limit must be enough to cover the transaction
Conversion Period
Must request conversion within 10–14 days after purchase
📌 Tip: Always check your monthly statement to identify which transactions can still be converted before the cutoff.
📲 How to Convert Purchases to Installments
UnionBank makes it super easy to convert — you can do it online, by phone, or through the app.
🖥️ Option 1: Convert via UnionBank Online (Recommended)
Log in to your UnionBank Online account or app.
Go to Credit Cards → Select your card.
Tap Transactions and select the purchase you want to convert.
Choose “Convert to Installment”.
Pick your installment term (3, 6, 12, 24, or 36 months).
Review the interest and total amount.
Tap Confirm to finalize.
💡 You’ll receive a text or email confirmation once your request is approved.
📞 Option 2: Convert by Calling UnionBank Customer Service
Dial (02) 8841-8600 or use the number at the back of your card.
Inform the agent you want to convert a transaction to installment.
Provide details like transaction date, amount, and term.
Wait for confirmation — processing usually takes 2–3 banking days.
🏦 Option 3: Through UnionBank Branch
If you prefer in-person, you can visit any UnionBank branch and request conversion assistance at the credit card service desk.
💰 Real-Life Example: How Much You’ll Pay
Let’s say Mark, a new UnionBank Credit Cardholder, bought a ₱30,000 refrigerator. He wants to convert it to 12-month installment at 1% monthly interest.
Here’s how it looks:
Item
Amount
Purchase Amount
₱30,000
Term
12 months
Monthly Interest
1%
Total Interest
₱3,600
Total Payable
₱33,600
Monthly Payment
₱2,800/month
So instead of paying ₱30,000 upfront, Mark only needs to pay ₱2,800 monthly — much easier on his budget.
You can try simulating this with the 👉 Credit Card Cost Calculator to see how much interest and total payment you’ll have depending on your chosen term.
🏷️ Benefits of Converting Purchases to Installments
1. Easier Budget Management
Spread large expenses into smaller, predictable monthly payments.
2. Keeps Cash Flow Healthy
You don’t have to empty your savings for big purchases.
3. Helps Build Credit History
Consistent, on-time installment payments show financial discipline.
4. Low Interest Rates
UnionBank offers competitive installment rates — lower than many personal loans.
5. Special Promos
Sometimes, select merchants or categories offer 0% interest installment plans.
⚠️ Important Reminders
Once converted, installment transactions cannot be reversed.
Paying only the minimum on your card does not cancel the installment — it will continue to bill monthly.
Installment amounts still consume your credit limit until fully paid.
Avoid making multiple installment conversions if your limit is near full — this can cause future declines.
🧠 How Interest Is Calculated (Simplified)
Interest depends on:
Purchase amount
Term (number of months)
Monthly interest rate
Formula (approximation): Total Payable = Purchase Amount × (1 + Monthly Interest × Term)
For example: ₱10,000 purchase × (1 + 0.01 × 12) = ₱11,200 total payable over 12 months.
🔍 Difference Between Merchant Installment vs. Post-Purchase Conversion
Feature
Merchant Installment
Post-Purchase Conversion
When Applied
During checkout
After transaction
Interest
Often 0% (promo)
May have small interest
Processing Time
Instant
2–3 days
Flexibility
Limited merchants
Any eligible transaction
So even if a store doesn’t offer “0% Installment,” you can still convert your purchase after the fact through UnionBank — that’s the flexibility many users love.
💡 Pro Tip for New Cardholders
If you’re still getting used to managing your credit card, try converting your first few big purchases (₱5,000 and above). This lets you build a payment rhythm while avoiding big statement shocks.
And always check your Credit Card Cost Calculator to preview your payment structure before committing to large transactions.
🧾 TL;DR — Summary for Busy Readers
Step
Action
Reminder
1
Make an eligible purchase (₱3,000+)
Use your UnionBank Credit Card
2
Log in to UnionBank Online
Tap “Convert to Installment”
3
Choose term
3–36 months, depending on offer
4
Review total amount and interest
Confirm and submit
5
Monitor approval
Deduction will reflect next billing
Bottom line: You can turn big, one-time purchases into affordable monthly payments — perfect for first-time credit cardholders learning how to manage their budget.
❓ Frequently Asked Questions (FAQs)
1. Can I convert all my purchases into installments?
No, only eligible transactions (usually ₱3,000 and above) can be converted.
2. How long do I have to request conversion?
You usually have up to 10–14 days after the transaction date to request conversion.
3. Can I pay off my installment early?
Yes, but pre-termination fees may apply. Contact UnionBank first before doing so.
4. Do installment purchases earn rewards points or miles?
Yes — installment purchases are still considered valid transactions and earn points as usual.
5. What happens if I miss a payment?
Your installment continues, but you’ll incur late fees and interest. Always pay at least the full installment amount monthly.
🏁 Final Thoughts
Converting your UnionBank Credit Card purchases to installments is one of the best financial tools for managing big expenses smartly. It’s perfect for new users who want flexibility and control without breaking their monthly budget.
So next time you’re eyeing that appliance, gadget, or travel booking — don’t stress about the full price upfront. Just swipe, convert, and pay comfortably over time.
And before deciding your term, use the 👉 Credit Card Cost Calculator to see how much your monthly payments and total costs would be.
Smart spending starts with smart planning — and UnionBank makes that easier than ever.
