Credit cards have emerged as a practical means of payment for those who are struggling financially. Credit cards make it simpler to make purchases and other payments when you don’t have enough cash. Using credit cards increases your ability to spend because you typically have 30 days to pay off your balance.
Sadly, many people who use credit cards frequently fail to make their payments on time. As a result, interest rates go up and penalties for late payments go up.
Due to the fact that the majority of credit cards have interest rates that can reach up to 36% annually, experts recommend paying off all of your debt on time. However, if you are unable to pay off the entire balance on your credit card statement at once, you can divide larger purchases into equal monthly payments (EMIs).
How does a credit card’s EMI work?
The credit card EMI process is straightforward. whenever you buy anything that costs more than Rs. 10,000, including automobiles, furniture, electrical appliances, and so on. You could make it an EMI.
When calculating the EMI, the bank’s interest rate, the duration you choose, and your down payment will all be taken into account.
For example, if you spend Rs. 10,000 as an initial investment on a mobilee that costs Rs. 20,000. The additional Rs. 10,000 can be paid in one-year portions at a 12% interest rate. You’d have to shell out Rs. 1,200 in annual interest payments
Important points to keep in mind:
- An EMI option is not offered by every credit card.
- EMI purchases decrease your card’s limit.
- EMI purchases decrease your card’s limit.
- Make your purchases online and you may be eligible for a waiver of the prepayment penalty.
- Keep up with all of your payments.
