All You Need to Know About Converting Credit Card Bills to EMI Payments

All credit cards offer instant credit access by funding your card transactions. While credit card issuers do not levy any interest on card transactions if repaid in full on time, those repaid after the due date tend to incur finance charges and late payment fees. Hence, if any of your credit card transactions require a longer repayment window, you can opt for any of the credit card EMI facilities like merchant EMI offers, loan against a credit card, or EMI conversion option, based on your requirements.

Be sure to understand the various benefits and uses of credit cards before you hit Apply. In this article, we’ll discuss the benefits of using the credit card EMI feature.

Important benefits of converting your credit card bills into EMI

Repay your unpayable card dues at lower interest

Failure to make your whole credit card bill’s repayment can land you in a massive debt trap. Non-repayment of your credit card dues by the due date often attracts heavy finance fees anywhere between 23% to 48% per annum, depending on the card you use. Moreover, failure to repay your minimum amount due (MAD) additionally levies late payment fees usually 15% of your overall amount due. Additionally, not clearing your dues even results in the revocation of your credit card’s interest-free period on all your fresh card transactions until you repay your complete outstanding dues.

A prudent way to avoid falling into a debt trap is converting your whole credit card outstanding or a portion of it into EMI. The interest constituent levied on the EMI conversion usually ranges anywhere between 11% to 24%  per annum depending on your issuer and your credit profile’s risk evaluation.

If you are looking for a low-charge credit card option, you can consider IDFC FIRST Bank credit cards that come with low finance charges starting at 0.75% to 3.5% per month including a low late payment fee, in case you default on your payments. Moreover, you get convenient EMI conversion through a mobile app at your ease.

Funds your requirement without the need for compromising on liquidity

A credit card EMI conversion tenure can range anywhere from 3 to 60 months based on the type of EMI you opt for. You can simply repay your dues in smaller installments based on your repayment potential. Thus, if you witness fund shortages and are unable to buy the product of your requirement, you can convert your transactions into convenient EMIs. Doing so will not impact your liquidity and allow you to further spend with your credit card easily.

Access attractive offers on EMIs by merchants

Many e-commerce platforms, stores, and merchants provide EMI facilities on products if purchased through credit cards. Such EMI options are provided based on the tie-up between the card issuer and a particular merchant or manufacturer. While the rate of interest and repayment tenures are set based on the tie-ups, merchant EMI rates might beat those charged on regular EMI conversions. Thus, if you are a credit card user and looking to make a big-ticket transaction, then you must ensure to check on e-commerce platforms and stores if there is any merchant EMI offers available.

Before placing an online credit card application, ensure to understand the benefits that the card can provide you and the charges associated with availing of those benefits. Of the many benefits offered by credit cards, the provision to opt for a credit card EMI facility is one of them. While this facility endows financial stability and provision to buy big-ticket products through the EMI route, it is a must for you to go through the charges and fees associated with availing this facility.