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Credit card issuers allow their customers the alternative to pay credit card bill and dues in the form of monthly instalments. You might feel bearing the card bills burdensome, with missed payments carrying a risk of interest accrual as per the applicable credit card interest rate.
In this way, one may choose an option for the bill conversions into easy EMIs, that makes the payment much affordable. Such conversion facility is also one of the top credit card benefits users can take advantage of with their credit card use.
When you switch to EMI mode for the payments of bills, it means that you are converting the dues into an advance payable in instalments. The entire due amount can be paid through EMI, or you can choose a specific sum which you wish to pay via EMIs. The EMIs, tenure, applicable credit card interest rates, etc. will then have to be discussed with the issuer. The interest charged on the EMI payment of credit card bills is to be decided by the issuer depending on several repayment factors.
As per a survey, credit card spending through EMIs went up significantly over the years. One primary reason behind this is zero interest charge on monthly instalments.
Often individuals avoid opting for credit card bill payment through instalments because of the fear that it might deteriorate his/her credit score. It is, however, a misconception. EMI is one of the most convenient ways to pay your credit card bills without hurting your score.
It will be less effective on your CIBIl score if you do pay the credit card dues via EMIs. Moreover, failing to pay your bills entirely at a time might take a toll on your score. Through EMIs, you can prevent such financial mishaps. If you responsibly pay your EMIs, which comprises both the bill component and interest component calculated as per the applicable credit card interest rate, it would rather boost your credit score.
When it comes to EMI conversions, some issuers might charge a processing fee to enable the facility on such credit card bill payment. However, it is a nominal amount. The documentation process involved in converting the dues into EMIs is also simple. There is less or no paperwork involved. The customer simply has to approach the issuer and request for the EMI facility on bill payment.
Customers can opt for tenure as per their convenience. In this case, the credit card interest rate applicable during the EMI period is almost half of that applicable on the card bills directly. For example, if a company charges 20% interest on a credit card, the cardholder will have to bear 10% interest rate throughout the entire EMI period.
The option of EMIs also opens the credit card benefits for their users. Some financial companies partner with shopping sites, brands, and various other entities. Thus, when you shop or avail any service from any of these partner stores, you can directly opt for EMI conversion and pay affordably, avoiding the stringent bill due date.
Further, customers can now pay credit cards bills through net banking conveniently from their homes, without having to stand in the queue. Choosing the EMI alternative also reduces the credit limit for a few days. The credit limit is reset and is restored to the initial amount once you start paying the EMIs.
Credit card interest rate on EMI bill payment varies from one issuer to another. It is directly linked to the tenure you select to pay off the dues completely. Longer the EMI tenor, higher are the interest rates charged on it.
If you are looking for cards which also offer loans against the available credit limit alongside EMI conversion facility, you can opt for the likes of SuperCard. Through such cards, customers can avail instant credit at minimal processing fees. It is, nevertheless, important that you research thoroughly and discuss every query with your issuer before converting your dues into EMIs.
To help you in your card availing and using experience, financial institutions also provide pre-approved offers. These offers are applicable to a range of financial products as well, like business loans and personal loans. You can check your pre-approved offer online by entering your name and mobile number.
If you are planning to settle for EMIs to pay your credit card bills, make sure to understand the charges, estimated outgo as per credit card interest rates, monthly liabilities, and so on.
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