Learn about the Pros and Cons of Converting Credit Card Bill into EMIs

In 2019, the credit card debt in India grew almost by over 5,300 crore. One of the reasons behind this is the delayed payment of credit card bills. As interest is charged on the bill amount at a considerable rate if a cardholder fails to pay the bills before the due date, missing such payment can turn out costly. Use of these payment instruments many times result in overspending due to lack of awareness, thus piling up the bill amount.

In this process, they often tend to become debt-ridden, which may be challenging to get rid of. In such a scenario, primarily, they are left with two options. Firstly, they can find ways on how to increase credit card limit so that they can spend more. Alternatively, they can also opt for EMI facility to pay the credit card dues conveniently. 

Nonetheless, as the latter can be of much use, you need to have a clear idea about how to pay credit card bills using EMI facility.

How can you pay credit card bills using EMIs?

A credit card facilitates the process of ‘buy now, pay later’, thus helping defer your immediate expenses. Due to this, individuals often tend to spend more than they can afford, which eventually leads to debts. To simplify the bill payment option, credit card users can thus opt for EMI facility. 

It allows the card users to convert their credit card dues into Equated Monthly Instalments (EMI). Simultaneously, they should also keep in mind that an EMI includes the principal as well as the interest component that they need to pay within the due date for a given billing cycle. 

The merits of credit card bill payment via EMIs

Following are some of the advantages that you can avail when paying for a credit card using EMIs. 

  • Makes high-end purchases easy

Most credit card issuers opt for a tie up with different partner brands. These partner merchants allow the credit card users to shop from their outlets via an affordable EMI facility. Hence, users can make big-ticket purchases without exhausting their savings. 

Certain cards like the Bajaj Finserv RBL Bank SuperCard also enable users to avail a personal loan as per the existing credit limit and repay it via up to 3 affordable EMIs. For that, they charge a nominal processing fee of up to 2.5%. 

The card issuer also provides pre-approved offers to existing customers. Such an offer makes the entire process of credit card application and approval hassle-free as well as prompt. Other financial products like personal loans, business loans, etc. also come with this offer. You can check your pre-approved offer instantly by sharing some essential details. 

  • Helps in clearing the debts affordably

Paying the credit card bills after the due date can burden you with exorbitant costs like credit card interest. However, opting for this EMI facility, you can distribute the payment of your credit card dues up to several months.

  • Contributes to credit score improvement

Since an EMI option facilitates a steady repayment process, it can help in credit score improvement reasonably. Paying the bills in time leads to strengthened credit history, showcasing that you can apply for other financial products as well in the future. 

However, for better understanding, you should check how you can use a credit card to improve your credit score.

One way to do so would be to check how to increase credit card limits and bring down the total utilisation percentage for an improved repayment capacity. 

Things to remember before opting for an EMI facility 

However, before availing the EMI facility for credit card bill payment, the following are some of the things that you need to keep in mind. 

  • Most issuers charge a certain processing fee on EMIs that you need to consider before choosing one.
  • Not all products come under EMI facility; thus, make sure to check this before making a high-value purchase.
  • The interest rates on EMIs vary from one issuer to another. Thus, it would help if you compare before deciding one. 

Thus, you can count the EMI option as one of the convenient options to pay your credit card bills. However, several other options are there that your issuer may offer after assessing your credit history. You, therefore, should consult with your credit card provider before settling for an option to pay your credit card bills.

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