Credit cards are your best ally at the time of emergencies. It saves you the worry of paying cash immediately and helps you to fulfil your needs instantly. Simply put, a credit card is where you borrow money from the bank to make payment for small or big purchases. You then go on to repay the amount to the lender within a stipulated period.
If you do not pay it on time, you will incur a penalty of late fees, your credit score will drop, and the interest rate piles on the original debt. To avoid going through all the hassle, banks and financial organisations have simplified the transactions through Equated Monthly Instalments (EMI) services on credit cards.
What is a credit card EMI calculator?
Some financial institutes provide you an option of converting payments via credit card into EMIs. Credit cards are used for large transactions many times. In such circumstances, banks offer you a choice of converting your extensive dealings into easy EMIs. Based on the amount, the user can choose to pay off the debt over a period of time.
How does converting credit card purchases into EMIs work?
This service works exactly like a loan. For making complete use of credit card EMI option, your amount should be more than the minimum money specified by the bank. You will have to include details such as amount payable and interest rate added to your actual credit card bill in the credit card EMI calculator. This will help you gauge how much of money will shell out from your pocket every month.
Banks nowadays have the calculator available on their website. The tool can limit your spending’s drastically.
What are the benefits of converting the credit card purchases into EMIs?
1) The moment you convert your credit card purchases into EMIs, you are no longer burdened to pay the entire amount on one go. By calculating the EMI, you can manage your finances better.
2) It also improves credit history as there are fewer chances the customer will goof up with impending dues.
3) As we know, all EMIs have a specific interest rate attached to it. The same gets low when your purchases are converted into EMIs. Certain banks may not apply any interest on your purchase EMI.
4) Customers can choose a tenure of their choice. Usually, the tenure period ranges anywhere from 3 months to 6 months to 9 months or a year.
5) The credit card purchases into EMI service involves minimum or no paperwork at all. You can make huge payment without worrying about the documentation process.
Points to remember before opting for credit card EMI option:
1) Not all banks provide the facility of credit card EMI calculator
2) The bank charges a fixed fee when you opt for this service. The cost depends on aspects such as the type of card, purchase amount, etc.
3) You might be charged a penalty if you pay the amount before tenure. You can get this waived by showing your loyalty to the bank offering them your credit card along with your credit profile.
4) Do not leave any outstanding dues of your credit card debt. It can mount your interest rate by 25-40 per cent at the end of the year.
What products are available under the scheme of credit card EMI calculator?
1) Electronic devices
2) Travel expenses
3) Apparels
4) Lifestyle expenses
5) Insurance expenses
Several banks are offering this service at present such as HDFC, ICICI Bank, State Bank of India, Axis Bank, IndusInd Bank, Citibank, Kotak Mahindra and so on.
If you do not pay it on time, you will incur a penalty of late fees, your credit score will drop, and the interest rate piles on the original debt. To avoid going through all the hassle, banks and financial organisations have simplified the transactions through Equated Monthly Instalments (EMI) services on credit cards.
What is a credit card EMI calculator?
Some financial institutes provide you an option of converting payments via credit card into EMIs. Credit cards are used for large transactions many times. In such circumstances, banks offer you a choice of converting your extensive dealings into easy EMIs. Based on the amount, the user can choose to pay off the debt over a period of time.
How does converting credit card purchases into EMIs work?
This service works exactly like a loan. For making complete use of credit card EMI option, your amount should be more than the minimum money specified by the bank. You will have to include details such as amount payable and interest rate added to your actual credit card bill in the credit card EMI calculator. This will help you gauge how much of money will shell out from your pocket every month.
Banks nowadays have the calculator available on their website. The tool can limit your spending’s drastically.
What are the benefits of converting the credit card purchases into EMIs?
1) The moment you convert your credit card purchases into EMIs, you are no longer burdened to pay the entire amount on one go. By calculating the EMI, you can manage your finances better.
2) It also improves credit history as there are fewer chances the customer will goof up with impending dues.
3) As we know, all EMIs have a specific interest rate attached to it. The same gets low when your purchases are converted into EMIs. Certain banks may not apply any interest on your purchase EMI.
4) Customers can choose a tenure of their choice. Usually, the tenure period ranges anywhere from 3 months to 6 months to 9 months or a year.
5) The credit card purchases into EMI service involves minimum or no paperwork at all. You can make huge payment without worrying about the documentation process.
Points to remember before opting for credit card EMI option:
1) Not all banks provide the facility of credit card EMI calculator
2) The bank charges a fixed fee when you opt for this service. The cost depends on aspects such as the type of card, purchase amount, etc.
3) You might be charged a penalty if you pay the amount before tenure. You can get this waived by showing your loyalty to the bank offering them your credit card along with your credit profile.
4) Do not leave any outstanding dues of your credit card debt. It can mount your interest rate by 25-40 per cent at the end of the year.
What products are available under the scheme of credit card EMI calculator?
1) Electronic devices
2) Travel expenses
3) Apparels
4) Lifestyle expenses
5) Insurance expenses
Several banks are offering this service at present such as HDFC, ICICI Bank, State Bank of India, Axis Bank, IndusInd Bank, Citibank, Kotak Mahindra and so on.
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