Are you planning to buy that new laptop which has been on your wish list for months but doesn’t know how to use a credit card for EMI? Worry no more! Every credit card comes with this brilliant perk to turn your big-ticket purchases into bite-size instalments. This facility helps in letting you buy products of significant value, without impacting your monthly budget too much.
Converting credit card bills into EMIs eases your burden of shelling out a big chunk of money together; it especially comes in handy when you have to:
- Buy electronics or appliances
- Make travel or hotel bookings
- Pay for education and more
Basics of EMI Conversion
To begin with, imagine you want to buy a computer worth ₹80,000, but your monthly income is ₹30,000. Do you think using a lump sum amount from your savings to buy a laptop is a wise choice? Or, paying the amount in smaller, fixed monthly payments over a set period is a better option?
Most credit card companies offer the option to convert your significant purchases into easy EMIs. Make sure to request for EMI conversion at the time of purchase or within the credit card processing time which is generally 30 days after the transaction.
By opting for EMIs, you can spread the cost over 3 months to a year or longer. You can choose a convenient option to repay the amount without burning a hole in your pocket and impacting your monthly budget.
How to Convert Your Bills into EMI?
With a credit card, the process to convert your credit card purchase into EMI is a straightforward method. You can follow a simple online process to get it done. The two options usually available are:
Net Banking
Some credit card companies rely solely on the power of the internet, and they provide a secure net banking process. By logging into your account, you can opt for EMI. All you have to do is:
- Log into your account
- Navigate to the ‘Transaction Section’
- Choose the payment you want to convert into EMI
- With authentication, you can confirm the process
Mobile App
You can also choose to use your mobile app to convert your purchases or credit card bills into EMI. For that, you will need to follow these steps:
- Open the mobile app
- Go to the ‘Transaction Section’
- Select the transaction you want to convert
- Convert into EMI
- Start paying the bite-size amount with your monthly credit card bill
Benefits of using EMI to Handle Large Expenses
Seeing the offers provided by credit card companies, you can understand that converting into EMI is more affordable than having to pay the entire sum upfront. The other benefits include:
- Convenient Payment Option: The EMI amount, along with applicable interest charges, is added to your regular credit card payment each month
- Zero Damage in Credit Score: Your EMI conversion will not do any harm to your credit score; instead, it elevates your creditworthiness
- Better Cash Flow: Instead of paying a lump sum upfront, EMI allows you to make the payment over the next few months; this helps you to stay stress-free regarding other financial obligations
- Easier on the Pocket: As EMIs provide flexibility, they make high-cost purchases more affordable
A Few Tips When Choosing This Option
When choosing EMI as an option to pay off your bills, it’s important to consider the following aspects to make an informed decision:
- Interest Rate: Check the rate that will be charged on the outstanding amount; usually, it is at a lower rate than your card’s standard APR
- Processing Fee: Some issuers may charge a one-time processing fee for EMI conversions
- EMI Tenure: Choose a tenure that is comfortable for you to repay your dues; make sure it fits your budget
- Lender’s Trustworthiness: Read reviews and check on the lender’s credibility before finalising to avoid any unpleasant surprises
- Impact on Credit Score: Ensure you make timely payments, as missed or late payments can have an adverse effect on the credit score
If you are someone who is planning to apply for a card, especially for the EMI benefits alongside other perks, then consider the One Credit Card. With this credit card, you can enjoy zero-cost EMI on your purchases.
If you want to track every transaction minutely, then a powerful credit card app is required. The OneCard App makes it easier for you to track your monthly expenses. Starting from finding the best offers near you with a GPS tracker to getting 5X reward points on your top two spending categories, this credit card can be a valuable tool to pay your rent and your utility bills on time. To start your journey with this stylish metal card, apply now.
