What is Credit Card Transaction Installment? How Does It Work and When Can It Be Applied?

Turn your one-time credit card purchases into installments

Credit card transaction installment allows you to take a purchase or cash advance made in full and pay it back in installments through your bank. This is usually possible for transactions that have not yet been posted to your statement and can help reduce your monthly payment burden.

In this guide:

• What is transaction installment?

• How to apply?

• Which transactions can be installmentized?

• Interest rates and taxes

💡 Want to calculate now? Use our Credit Card Transaction Installment Calculator at the top of the page to see your new monthly installment and total interest in seconds!

What is Credit Card Transaction Installment?

Transaction installment is when a purchase made in full using your credit card is later converted into installments through your bank, including interest and taxes.

Example:

• You make a purchase of 3,000 TL in full.

• If the transaction has not yet been posted to your statement, you can convert it into 6 installments through the bank.

• Your monthly payment decreases, but total interest is added.

How to Apply for Transaction Installment?

• The transaction must not be posted: already posted transactions cannot be installmentized.

• Only applicable for TL (Turkish Lira) purchases: foreign currency transactions cannot be installmentized.

• Can be requested via the bank’s app or by visiting a branch.

Which Transactions Can Be Installmentized?

By law, the following categories cannot be installmentized:

• Food

• Fuel

• Cosmetics

• Etc.

All other full purchases and cash advance transactions can be installmentized.

How to Calculate Transaction Installment?

Installments are calculated using the equal installment (annuity) formula:

$$\text{Monthly Payment} = K \cdot \frac{r \cdot (1+r)^n}{(1+r)^n – 1}$$

Monthly Payment=K⋅(1+r)n−1r⋅(1+r)n​

• $K$K: Amount to be installmentized

• $r$r: Monthly interest rate

• $n$n: Number of installments

Example Calculation:

• Transaction Amount: 3,000 TL

• Installments: 6

• Monthly Interest: 4.00% / 12 ≈ 0.333%

$$\text{Monthly Payment} \approx 530.80 TL$$

$$\text{Monthly Payment}\approx 530.80TL$$

⚠️ Note: BSMV (15%) and KKDF (15%) are added to the calculated interest.

Interest Rates and Taxes for Installment

• Interest Rate: Usually 4.00% (maximum contractual interest rate set by CBRT)

• BSMV: 15% on interest

• KKDF: 15% on interest

💡 Info: These taxes are added on top of the interest, increasing the total cost.

Maximum Number of Installments

• Banks in Turkey offer 2 to 12 installments.

• Legally, installment duration cannot exceed 12 months.

• Some transactions (electronics, taxes, etc.) may have different limits.

Frequently Asked Questions (FAQ)

🔹 When can I apply for installments?
You must apply before the transaction is posted to your statement.

🔹 Can a previously installmentized transaction be re-installmentized?
No, transactions that were already installmentized or deferred cannot be re-installmentized.

🔹 Is the installment interest rate always 4.00%?
Usually, yes, but it may vary depending on the bank and the period.

🔹 Which taxes are added to the installment interest?
BSMV (15%) and KKDF (15%) are applied to the interest.

Conclusion: Make Installment Decisions Wisely

Credit card transaction installment can reduce your monthly burden but increases the total cost. Therefore:

• Calculate the total interest cost

• Act before the transaction is posted

• Be aware of transactions that cannot be installmentized

🏦 Warning: This calculator is for informational purposes only. Contact your bank for exact details.