It is the season of festivals. Diwali will also come in a few days. In view of festivals, festive cells are also on, which people are taking full advantage of. Often something is out of our budget, then we use EMI to buy it. Nowadays credit cards exist, so the credit cards using it take the option of EMI and bring expensive things home in installments. This type of purchase is right on the need, but it is important to consider some things before resorting to credit card EMI, otherwise, you may have problems instead of convenience.
Timely install installment
First of all, tie the knot that on purchasing the credit card EMI, its installment should be paid on time, do not be missed. If even one installment is missed, it will continue to add further and your credit score will also be affected. Also, keep in mind that you do not exceed your spending capacity just because you have the option of EMI.
Know the processing fee
According to the credit card variant, the processing fee of the EMI will be 1 to 3 percent of the amount of the item you have purchased from the card. Even if it is not taking a huge amount to see it, but it can cause problems by joining your EMI. For this, read the fineprint of your card or go to the bank and get complete information about it.
Know the interest rate on EMI
Credit cards sometimes offer lower interest rates and zero processing fees for EMI transactions on certain purchases. The interest charged on EMI is often less than the interest charged on credit card debt. Interest on credit card EMI is 12-24% per annum. Therefore, you should get clear information on interest and how much you have to pay and compare it in your different credit cards. Apart from this, take information about the festive offers on EMI from banks. This will save you.
Shopping for festivals with credit card, then you will be able to avail these 6 benefits
Get information about pre-closure charge
During the payment of EMI, it may happen that you do not want to pull the EMI for the entire duration of the loan and want to repay the loan by paying your entire loan amount in one go. But it becomes important to take care of the pre-closure charge. In this situation it can happen that up to 3% of the outstanding amount is charged from you. It depends on the terms and conditions of the credit card issuer. So when you choose your credit card EMI plan, take the information of pre-closure charge in advance.
Note this point as well
As soon as you make a purchase with the credit card EMI option, at the same time your credit card limit will be blocked up to the amount as the purchase is selected. It will open only when you pay the entire EMI. You should also keep this in mind because it will affect your other expenses.
