Four smart reasons to break-down Credit Card dues into EMIs

This entails the bank breaking down the credit card outstanding dues into smaller monthly instalments to be paid over a longer period usually 6–18 months.

Dec 03, 2015 05:12 IST India Infoline News Service

The option of using Equated Monthly Instalments (EMIs) to meet credit card dues is growing in popularity. This entails the bank breaking down the credit card outstanding dues into smaller monthly instalments to be paid over a longer period usually 6–18 months. Many people are wary about this; however, below are 4 amazing reasons to use the EMI option for your credit card payments.
 
Flexibility of Payments
You can make a high cost purchase today and pay for it in monthly instalments that are more pocket-friendly to your budget. For example, a purchase worth Rs 10,000 can be broken down to 10 to 12 monthly instalments of about Rs 1,000 each which are more manageable. This way you can take advantage of discounts or low price seasons and make savings.
 
Restricted to Certain Type of Purchases and Certain Outlets
Many issuers are specific on the point of sale, value and type of purchases which an EMI would be applicable. This creates a control for card holders not to use EMI option for recurrent monthly expenses but for planned high cost purchases that would otherwise have required loans or a break of their savings plans.
 
Better Management of Credit Score
Huge credit card bills are not easily settled within a short time as required. In most scenarios this degrades to delayed payments on the credit card bill impacting negatively on your credit score. By breaking down the monthly instalments to more manageable amounts and on time payments of the EMI; you will improve on your credit score rather than risk degrading it.
 
Saving on Interest
When compared to EMI interest rates, interest charged on outstanding credit card amounts are costlier by about 1-2%. Consumers can save on interest charges especially for expensive purchases and would manage to pay off the bill in a short time.
 
Nothing beats the logic of living within your means. EMIs provide a tool to better manage your credit card bills and improve your credit rating. Whatever the scenario is, you can find a reason to use EMI and fit your needs.

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