Credit cards have become the preferred payment option for many people. During the end-of-year holidays, banks and e-commerce platforms jointly offer attractive offers on bank card purchases. It’s a win-win deal for everyone. Buyers benefit from good deals. Business sales are increasing. Transactions from credit card companies are also increasing.
However, credit card users should always keep in mind that payment is made on time, so that there are no interest and late payment penalties to pay. If you are unable to repay large expenses on time, use No Cost EMI. In this, there is a possibility of interest-free EMI on purchases.
This ease on expensive items like electronics, furniture
Financial companies offer this facility on big-ticket items like consumer electronics, furniture, and gadgets. This option gives you the flexibility to repay your payment within 6 to 9 months. Thanks to this, you will be able to enjoy festive offers from your favorite brands while respecting your budget.
How do interest and discounts work in a no-cost EMI?
No-fee credit cards are an easy way for consumers to divide large expenses into smaller, interest-free installments. Partner merchants offer this option. It is important for consumers to understand how interest and rebates 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 may have included the interest in the price or in the offer you received. Remember that interest will still apply, resulting in a nominal increase in your monthly payments.
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 you choose, because your score is directly related to the interest rate you’ll get. Responsible use of credit will improve this score. On the other hand, non-payment will hurt your score. This will cause difficulties in taking out loans in the future.
Choose this option only after understanding the conditions
Before availing the facility of No Cost EMI, understand its terms and conditions completely. Be sure to ask about fees included in the product price. Make sure the EMI fits your monthly budget. Check your credit score before choosing an EMI. A good credit score can help you get a better deal.
See the best offers
Make the most of your credit card this holiday season. Different credit cards offer different festival benefits and rewards. Before you shop, 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 domestic income. If your credit card dues have increased, use your 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 EMIs, where the interest rate is 18%. This is different from No Cost EMI. But remember that it is better to make the payment during the interest-free period.