Credit Card Contributions | Possibility of EMI conversion on credit card? know this
Possibility of EMI conversion on credit card? Know it
New Delhi: Credit cards have increased the purchasing power of people. Due to the growing trend to buy products first and pay later, chances are people will overspend and then skip bill payments or pay the minimum amount. Not paying credit card bills on time has serious consequences.
In addition to impacting your credit score, late credit card payments will require you to pay late fees. Your next billing statement will also include charges for late or missed payments. Additionally, if your payment is late each month, you will be charged a late fee or less than the minimum payment.
Failure to repay the entire credit card bill by the due date will result in finance charges on the unpaid bill. The charges typically vary between 30-49% per year on the unpaid credit card bill. Failure to pay the entire credit card bill may also result in revocation of the interest-free period on new credit card transactions.
Your interest rate will also increase if your payment is 60 days past due. You will not only be penalized with late fees, but your interest rate will also increase up to the penalty rate, which is the highest interest rate on your credit card.
Convert outstanding to EMI: Those who cannot pay off their entire credit card bill by the due date can convert their entire credit bill or part of it to Equivalent Monthly Payments (EMIs), depending on their ability to pay. immediate refund. Since the interest rate of these EMI conversions is much lower than finance charges, it will help reduce the interest charge.
Note that the duration of these EMI conversions can range from 3 months to 5 years depending on the card issuer. So, you can choose the EMI mandates according to your EMI accessibility. This EMI option allows you to reimburse the outstanding invoice component in smaller installments while avoiding a negative impact on credit scores.
EMI Credit Card Balance Transfer: Many credit card issuers offer the option of EMI conversion when transferring credit card balance. This option allows you to transfer the credit balance from one credit card to another credit card issued by another card issuer and then convert the transferred balance to EMI.