Is Credit Card EMI a good option?

If you think the EMI option is very useful as you can save yourself from paying a huge amount of money at one go, you need to rethink. Typically, when you opt for a longer-term EMI, banks or the card issuer offers a lower interest rate, but it doesn’t mean that the total amount of interest you have to pay is less.

What is the difference between credit card and debit card EMI?

Debit cards allow only direct EMI conversion, while credit cards allow both. In the case of direct EMI conversion, the merchant converts the price of the product into EMIs based on the choice of tenor at the time of the purchase.

How does credit card EMI payment work?

When you make a purchase online using your credit card, you can convert the transaction amount into equated monthly instalments (EMIs). The EMI includes a portion of the principal outstanding and interest component, which you need to pay every month until the full amount is paid.

Can I buy more than my credit limit on EMI?

If you convert the over-limit transaction to equated monthly installments (EMIs), your actual credit limit will get blocked. As and when you repay your EMIs by the due date, your credit limit will get released.”

Does EMI increase credit score?

When borrowing a loan, try choosing a longer tenor for repayment. This will ensure that your EMI is low, and so, you are able to make payments on time. When you don’t default, delay or skip paying EMIs, your credit score will improve.

Can EMI be paid with credit card?

Yes, it is possible to pay a personal loan EMI through credit card. This is because when you use a credit card, you are actually using the bank’s money to pay off the bank’s borrowed money. This borrowed money you take from your credit card, which you need to pay on a scheduled time, is a type of loan.

What is credit card EMI and how it works?

By the way, the same process happens in case of credit card EMIs too. i.e., your credit card is initially charged the complete amount and the purchase amount is converted into an EMI after a few days. However, you wouldn’t face any issue with a credit card so long as your transactions on the card do not breach the credit limit.

Is it worth it to buy a debit card with 0\% EMI?

The answer is not too difficult. If you are getting the debit card EMI benefit at 0\% percent interest rate (and no other cost), such schemes are quite good. Well, I assume you won’t live beyond your means. If there is cost involved, then you have to see if the extra interest paid is worth it or you can afford to delay the purchase.

What is post-transaction EMI and how it works?

When you opt for the post-transaction EMI, the one-time processing fee debited from your credit card is separately shown in the credit card bill, which is generally not shown in case of if you had converted the transaction into EMIs on an e-commerce portal.

How can I convert my credit card payments into EMIS?

There are two ways you can convert your credit card payments into EMIs. They are: either through instant EMI conversion on the e-commerce portal itself or convert the transaction amount into EMI after the transaction via Net-banking.