Credit cards have become the preferred payment option for many people. During the festive season, banks and e-commerce platforms are jointly offering attractive offers on credit card purchases. It is a win-win deal for everyone. Buyers get good deals. Sales of companies increase. Transactions of credit card companies also increase.
However, credit card users should always keep in mind that the payment is on time, so that interest and late penalty does not have to be paid. If you are unable to repay big expenses on time, then use No Cost EMI. In this, there is facility of interest free EMI on shopping.
This facility on expensive items like electronics, furniture
Finance companies provide this facility on expensive items like consumer electronics, furniture and gadgets. This option gives you the flexibility to repay your payment in 6-9 months. With this, you can take advantage of festive offers from your favorite brands while staying within your budget.
How do interest and discount work in no cost EMI?
No cost credit cards are an easy way for consumers to break large expenses into smaller installments without interest. Partner merchants offer this option. It is important for consumers to understand how interest and discounts work. Interest is usually included in the price offered by the merchant or brand.
For example, if you buy a refrigerator priced at Rs 40,000, the retailer might have included the interest cost in the price or the offer you received. Remember that interest will still apply, resulting in a nominal increase in your monthly instalments.
use it responsibly
The no cost EMI option should be used responsibly. Check the repayment terms and make sure they fit into your monthly budget. Understand your credit score before choosing, as your score is directly related to the interest rate you will be eligible for. Responsible credit use will improve this score. On the other hand, non-payment will hurt your score. This will cause difficulty in taking loans in future.
Choose this option only after understanding the conditions thoroughly
Before availing the facility of No Cost EMI, understand its terms and conditions thoroughly. Be sure to find out about the costs included in the price of the product. Make sure the EMI fits into your monthly budget. Check your credit score before choosing an EMI. A good credit score can help you get a better deal.
View Best Offers
Make the most of your credit card during the festive season. Different credit cards offer different festival benefits and rewards. Before shopping, check which cards offer the best discounts and cashback.
Manage Credit Card Bills
The ideal rule is that all your EMIs should never exceed 40% of your inland income. If your credit card dues have increased, use savings to avoid high interest rates. Keep in mind that to avoid the 36% interest rate on credit cards, you can convert your expenses into EMI, where the interest rate is 18%. This is different from No Cost EMI. But remember, it is best to make payment during the interest free period.
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