Benefits of Converting Credit Card Purchases to EMI
By choosing the EMI payment facility, a cardholder can pay off their debt over a period of time, better managing their finances.
One of the main factors that attract people to credit cards is their ease of transaction. By converting credit card transactions to EMI, any cardholder can make a high-priced purchase without burning their pockets. Therefore, the ability to buy expensive products on EMI is one of the reasons people opt for credit cards.
Even though there are many digital platforms that have recently emerged offering instant credit and credit card-like facilities, there is a distinct section of people who stick with credit cards due to its various advantages and advantages.
According to data from the Reserve Bank of India, the value of credit card transactions increased by 26% month-on-month to Rs 1,00,943 crore in October last year, due to holiday season expenses.
That said, if you’re new to the space, you first need to know what can be converted and what isn’t. “Different banks have different things or items that they allow to be paid through EMI, including purchase of electronics, travel expenses, purchase of clothing, lifestyle expenses, insurance expenses , etc.” However, note that banks generally do not allow people to make EMI payments for the purchase of jewelry and precious metals like gold, silver, etc.
Here are some benefits of converting your purchases to EMI;
Manageable Funding Option: By choosing the EMI payment facility, a cardholder can pay off debt over a period of time, helping them better manage their finances.
Improves credit profile: With EMI payments, experts say there is less chance a borrower will miss their payments. Therefore, individuals can gradually improve their credit history over the period.
Attractive interest rates: EMI payments carry a certain interest rate. However, the same is generally low for purchases that have been converted to EMI. Additionally, some banks may also not charge any interest on a cardholder’s EMI purchase.
Flexibility in repayment term: Cardholders can choose how long their purchases are refunded. The usual duration allowed for reimbursement can vary from 3, 6, 9 and 12 months. Some banks also allow extensions up to 36 months.
Credit cards provide instant access to credit by funding transactions immediately. However, experts say it’s important to note that while card issuers charge no interest on transactions redeemed on the due date, high interest and late fees apply to those redeemed after the due date. due date.
Therefore, remember to always pay credit card bills on time. If by chance you are unable to repay, you may consider EMIs for transactions involving longer repayment periods.
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