EMI on Your Credit Card: Find Out More

By BankBazaar | September 3, 2015

An EMI on your Credit Card? That’s RIGHT! Here’s what you should know.

Using a Credit Card is a great way to shop, especially if you’re not prepared with cash up-front. Plus, you get great discounts and deals depending on the type of Credit Card you’ve opted for. What’s not to like, right? But what happens when it’s time to start paying for everything your card could buy? A few things you should know about EMIs.

So… What are my choices again?

For starters, you could simply choose to go ahead and make the complete payment, at one go, before the due date. You could also choose to go with instalment payment option which includes an interest on the due amount. Or you could opt for an EMI payment mode.

Really? Easy Monthly Instalments?

Yes, but remember not all Credit Cards offer you the option of EMIs. So make sure you confirm with your bank if you can get one that does. EMIs allow you to fragment your payment mode, making your life a little easier – for a while at least.

What should I know?

Credit card firms usually charge a good rate of interest on credit card payments during the time you’re paying back. In the case of making payments post the indicated deadline, credit card holders end up paying a lot more than when it was interest free. It is always a good idea to be prompt in your payment.

What about my Credit Score?

It is crucial you maintain a good credit score for banks to consider your loan applications in the long run. A good credit score also allows you to enjoy favourable interest rates, owing to timely payments. EMIs should be given a serious thought because they will affect your credit card score if you fail to pay your EMIs on time.

While an EMI on your Credit Card is a great option, to be able to enjoy all its benefits depends entirely on how prompt you are in your payments. Since your credibility depends on prompt financial management, it is advisable to give this a serious thought.

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