Before paying your monthly EMI using a credit card, keep these factors in mind to avoid losing thousands of rupees.

Apply for a Credit Card: A credit card can be quite helpful if used correctly. Additionally, each month after making any purchases using a credit card, its charge must also be paid. In addition, we frequently use our credit cards to make EMI payments on items we purchase on a monthly basis. To avoid losing money, some considerations should also be made if you have taken out any type of loan other than a credit card on EMI.

EMI Payment

The outstanding amount is paid in installments every month once the amount to be paid is transformed into an EMI, and occasionally interest must also be paid on these installments. While EMI on credit cards can be practical and convenient, there are a few considerations to make.

1. Processing Cost: The Credit Card EMI also carries a processing fee. Before selecting the EMI option, it is advised to inquire about the fees with the card issuer.
2.  Interest Rate: In addition to the processing fee, the amount being converted into an EMI will also be subject to interest charges from your credit card service provider. Numerous e-commerce sites also provide zero-cost EMIs, where you don’t have to spend any extra money. What the interest rate is in this circumstance needs to be confirmed.
3. Credit Balance: Prior to making a payment or turning your transaction into an EMI, always check the credit available on the card. The EMI request can be denied if there isn’t enough credit available.
4. Charge for foreclosure: If you choose to pay the last of your EMIs all at once, this is known as foreclosure, and fees plus GST will be charged.
5. Missed Payment: Late fees and other fees will apply if any EMIs are not paid in full and are missed. In addition to this, further interest fees will be added, and there might be a loss of thousands of dollars. Additionally, missed payments have an impact on credit score.

Read More: Loan Demand: Despite Corona, loan demand increased by 11.1 percent in 2021-22, loan market size increased to Rs 174.3 lakh crore

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