Credit Cards EMI: A credit card is very useful if used wisely. Besides making any payment with a credit card, you have to pay the same month’s bill. Also we buy something on credit card on EMI, so we have to pay EMI every few months. However, there are a few things to keep in mind about credit cards and any separate EMIs, so that you don’t lose out.
EMI Payment on Credit Cards EMI
When the amount paid is converted into EMI, the entire amount is paid in instalments every month and most of the time interest is also required to be paid on the instalment.
Processing Fees on Credit Cards EMI
Processing charges There is also a processing charge on Credit Card EMIs. One should first check the charges while choosing the EMI option while advising the card service provider.
Before making any payment or before converting your transactions into EMIs, you should always check your card balance. If the credit is not available in the account, your EMI application is rejected.
If you want to pay the full amount of EMI in one go, it is called foreclosure. In such case the charge plus GST will be applicable.
Along with the processing fee, your credit card service provider also charges interest on the amount transferred to your EMI. Currently many e-commerce platforms also offer zero cost EMI, you don’t need to pay any extra amount. It is necessary to verify the rate of interest at such times.
If for some reason you do not pay the EMI or if the instalment is late, then late fees will be charged. At the same time, additional interest is also charged, so thousands can be lost. At the same time, credit score is also affected due to missed payments.
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