Do you want to Pay EMIs through Your Credit Card? This Guide is for you. Credit cards are handy financial tools that allow one to make big-ticket purchases on credit without facing any immediate financial strain. It is because one can choose to pay off their purchases through small installments over a period with these cards instead of paying in a lump sum.
Applicable EMIs on such purchases are deducted monthly from your credit card’s limit over the chosen period. In turn, you need to pay your credit card’s bill with such EMIs chargeable to your credit limit. Although it facilitates high-value purchases, you must consider a few things to ease your EMI payments via credit cards further.
Check out the following tips that help you determine how to pay EMI through a credit card with ease.
Tips to consider for easy EMI payment through credit cards
Choose a suitable tenor
You can choose an extended tenor of up to 12 months or more offered by select card issuers as per your convenience when you opt to pay EMI through credit cards. Note that if you opt for an extended tenor, the EMI amount will be smaller. Conversely, if you choose for a shorter tenor, the EMI amount will be on the higher end, but you will be able to pay off the entire purchase amount earlier.
Many credit card issuers today offer No Cost EMIs for specific purchases and transactions and do not charge any additional interest when you opt to pay off your purchases via EMI. The EMI amount is the same as the cost of the items you purchased divided by the number of months in your chosen tenor.
For instance, if you have purchased an item worth Rs.60,000 and opt for a tenor of 12 months, you will be paying EMI at Rs.5,000. However, if you choose a tenor of 15 months, your EMI will be reduced to Rs.4,000. Besides, make sure to consider other pointers as well to convert credit card purchases into EMIs.
Look for applicable processing fees
When you choose to pay your EMIs via credit cards, opt for a lending institution that charges nominal processing fees. Hefty processing fees, in addition to the EMI amount, can be financially draining.
For example, you can opt for credit cards like Bajaj Finserv RBL Bank SuperCard that allow you to purchase items from partner stores on EMI without paying any additional cost. Further, one can also avail cashback on purchases from partner stores.
Avoid making multiple purchases and EMI conversions
When considering how to pay EMI through credit card easily, you must also keep in mind not to make multiple purchases in a short duration and convert them into EMIs. Understand that purchases converted into EMIs block your available credit limit. So, if you make multiple high-value purchases and convert them into EMIs, you exhaust a substantial portion of the available credit. This will obviously render your credit card blocked for use other than equal to the total amount of funds you have to pay EMIs.
With these tips on how to pay EMI through credit card, you can further strategize your financial plan over the payment tenor. It would help if you also made sure that you don’t miss out on a single payment as it might have a negative impact on your credit score. Nonetheless, you should also know how you can use a credit card to improve your credit score.
Apart from paying for your credit card purchases through EMIs, you can also consider opting for an emergency loan against the unutilized limit of the card for an interest-free period of 90 days. With specific financial institutions, such advances can be converted into EMIs for convenient repayment. To avail such benefits, you must select your payment card from a reputed card issuer.