Making large payments is often more likely to become a liability. Credit cards help you pay off such payments without much burden by converting them into EMIs, which can upset your monthly budget. Credit cards offer a variety of EMI options. As with all financial instruments, credit cards should be used with caution. There are many things to keep in mind, such as when to use credit card EMI, when not to use it, how long to take EMI, what is No Cost EMI?

What is No Cost EMI?

No-cost EMI on credit card is a payment option that allows you to convert your payment into monthly installments without paying any additional interest or processing fee. Instead of paying the full amount upfront, the amount is paid over a period of time (e.g. This allows you to pay the total price of the product in installments (3, 6, 12 months).

How to convert a payment into EMI?

To change the credit card payment to EMI, log in to your bank's net banking portal or mobile app, then come to the credit card section, select the option "Convert to EMI," select the transaction or outstanding amount, select the desired EMI tenure, review the terms and confirm the conversion.

When to choose credit card EMI facility

Choosing a credit card EMI facility is helpful in many situations:

• For larger payments:When you buy high-value items such as electronics, furniture, and appliances, converting the cost into EMIs will make it easier to manage your finances.
• Small Budget: For immediate purchases if you have a limited monthly budget, EMIs help you buy what you need without hampering your finances.
• No-cost EMI offers:Many retailers offer no-cost EMI options on certain products. It is advisable to make the EMI without paying together as it allows you to pay in installments without any additional interest.
• Emergency expenses: In case of unforeseen expenses such as medical emergencies, EMIs help you manage payments without any financial strain.

When to avoid credit card EMI?

There are situations when choosing an EMI card may not be the best decision:

• Short-term payments: If you can pay your credit card bill in full within a short period of time, it is better to avoid EMI to save on interest costs and processing fees.
• Small purchases: It is not wise to pay the processing fee and interest through EMI while buying low-cost devices.
• High interest ratesIf the interest rate on EMI is high, it is better to avoid EMI. When you look at the brave times, you can see that you are losing a lot of money.
• Existing multiple EMIs: If you already have several EMIs, adding another one can create financial hardship for you and lead to accumulation of debt.

Credit card EMIs are an appropriate financial tool when used wisely. Be it for large purchases, managing cash flow, or dealing with emergencies, decide carefully when to opt for EMIs and when to opt out. Evaluate your needs, assess your expenses, and make sure you don't miss out on all the benefits of your credit card EMI options.