In fact, it will help you avoid and prevent yourself from late payment charges, thus mending your Credit score. Credit history:Ĭredit Card EMIs won’t affect your credit history. Thus, the dues will continue to grow with interest on the revolving credit. However, you can avoid the habit of paying the minimum due as it attracts 5% of the outstanding balance. Paying in small instalments wouldn’t put a strain on your finances. Flexible repayment:īy converting your outstanding dues into EMI, you get a longer tenure to repay the credit. For instance, if your outstanding balance is Rs 50,000, and you have paid Rs 10,000,you will be charged an interest rate on the balance amount, which is Rs 40,000. Banks usually apply interest based on the outstanding balance on the Credit Card instead of the entire amount. While selecting the EMI option on your Credit Card payment, keep in mind that you will benefit from a low-interest rate. If you’re stuck in a similar situation, you can opt for Credit Card EMI.īefore knowing how to convert Credit Card outstanding into EMIs, let’s get to know the benefits. The mounting bill can be burdensome, but you can reduce the liability by converting your outstanding balance into EMIs or Equated Monthly Instalments. You only realise that when you have to pay the outstanding dues on your Credit Card. Given the benefit of the credit, some of you may tend to use it repeatedly without realising that the card comes with a spending limit. There are many advantages of having a Credit Card as it gives you the freedom to avail of credit anytime, anywhere. Moreover, with every Credit Card payment or transaction, you earn reward points, cashback and discount offers. Any person can avail of a suitable Credit Card from any bank with minimal documentation. With just the swipe of a card, you can perform instant transactions with ease. Nowadays, it is easy to pay for big or small purchases with a Credit Card. In such a case, it is better to convert your Credit Card outstanding into EMIs. But when it comes to paying huge bills later, it can be quite burdensome. Using a Credit Card for big-ticket purchases seems to be the preferable option these days.
0 Comments
Leave a Reply. |