When it comes to buying things with a credit card, you are already worried about a lot of things like is the product good, or should you use an online gst calculator to see if the seller is charging you right. On top of that you are also worried about EMI(Equated Monthly Installments). However, don’t worry today we are going to demystify EMIs and share with you some of the things you should check before agreeing to pay an EMI. You can choose to pay in cash or by cheque, or even by installments. But one of the most common ways that people buy things is by opting for EMI (Equated Monthly Installments). This will allow you to pay a certain amount monthly and use your credit card at the same time. If you want to know more about it and the things you should keep in mind while opting for EMI on your credit card then continue reading!
1. Check the Processing fee
You have to pay a processing fee on your EMI, but it is usually not very high. The processing fee charged by the EMI provider depends on the tenure you choose. You should make sure that you are opting for a low rate and not a high one as this will cost more in the long run.
2. Choosing the right tenure
The term of your credit card should be chosen carefully and it should be long enough to allow you time to pay off the debts which you have accumulated on the card. A card with a shorter tenure will cost you more in interest charges. Also, try and choose a card where there are no annual fees charged on it.
3. Compare the fees and charges
The EMI facility on your credit card can vary from one bank to another depending upon their terms and conditions as well as their rewards point schemes. Before opting for any EMI facility make sure that you compare all these details carefully so that you do not end up paying more than expected at the end of your tenure. To make your calculations right and accurate you should use an accurate emi calculator for business loan.
4. Consider the Loss of rewards / discounts
Credit card company will provide EMI on the condition that you pay your dues on time. But what if you don’t get your bank statement or mobile bill in time? This can make it difficult for you to know whether you are eligible or not for the offer. To avoid this situation, it is better to keep a close tab on your bank account and credit card statements.
5. Blocked credit limit
For some people, having a blocked credit limit is a big deal as they cannot use their cards without any restrictions because of missed payments. However, there are also cases where having a closed limit does not affect them at all since they are able to make payments using other methods such as debit cards or even cash. So if you think your credit limit might be blocked in case of missed payments, ask your bank about it before applying for an EMI facility on your credit card as it might help in getting approval faster than otherwise.
