If you have opted for EMI then you need to make sure to pay the entire outstanding amount (including EMI) by the due date.
Credit cards should be used wisely and judiciously. Banks may charge you a pre-payment fee.
Many times it happens when we do not have money, we resort to credit cards. Credit cards should be used wisely otherwise it has been seen many times that customers are unable to pay their credit card bills before the due date.
Converting expenses into EMIs helps us, but it should be used wisely and judiciously. Credit card issuers allow the customer to convert the entire or a part of his bill into Equated Monthly Installments (EMIs) for a flexible period at low interest cost.
Surely converting to EMI will reduce your current burden, but if not paid on time, EMI can be a big burden on your financial stability.
The EMI will be calculated on the basis of the interest rate charged by the bank, the tenure chosen by you and the down payment made by you. So, before choosing it, you need to keep a few things in mind.
• EMI schemes are subject to nominal processing charges. Apart from this, many banks also offer zero EMI offers that you can avail. So check before choosing.
• Choose tenure wisely. Customers are given the freedom to choose the repayment tenure on their purchases. The normal tenure allowed for repayment can be up to 3 months, 6 months, 9 months and 12 months.
• If you have more than one credit card, you should compare the interest rates offered on them.
Also, by converting your credit card transactions into easy Equated Monthly Installments (EMIs), you can make high value purchases without loosening your pocket. Being able to buy large products on EMI is probably one of the major factors that attract people to credit cards.
When you use the EMI facility, the purchase amount gets blocked against the credit limit. Hence, your available credit limit goes down until you pay off the EMIs.
• If you have opted for EMI, you need to make sure to pay the entire outstanding amount (including EMI) by the due date.
• Banks may charge you a pre-payment fee if you wish to pay the dues before the tenure.
