In today’s world, cash is no longer the only mode of transaction available. With the steady rise of technology and various financial systems, cashless payments are now a reality. There has been a wider acceptance of credit cards, debit cards, cheques and online payment apps such as Airtel Thanks. These cashless payment methods have indeed helped us a lot.
Amongst other benefits, did you know that you can convert your credit card payments into EMIs? This is quite an incredible feature. Well, now you can finally purchase that expensive mobile, thanks to credit card EMI. Or you can even go for that state-of-the-art laptop on EMI without credit card bill payment. Sounds amazing, right? Keep reading this space if you wish to understand more about this feature.
How does EMI on credit card work?
Buying a product on credit card EMI will affect your credit card limit. The bank will lower your credit card limit based on the amount of EMI. Your minimum monthly dues of your credit card will get higher, again based on the EMI amount. Basically, the bank gives your monthly automatic payment, so you can shop and pay for products hassle-free. Your month end dues will include the cost of EMI. Thus, we recommend that you settle your outstanding amount including your EMI, at the end of every month.
Will the credit card EMI interest rate affect me significantly?
Well, the answer to this question depends from one bank to another. There are a few banks in the market which may not charge you an interest rate when you convert the credit card bills into EMIs.
However, most banks do charge interest rates. In addition, you may also have to pay a small processing fee for the conversion. To know more about these charges, it is best if you approach your banking partner and inquire about them.
How is the EMI calculated?
When it comes to the banks converting your credit card bills to EMIs, they usually charge interest rates that can vary between 13-18%. In case you wish to learn even more about your monthly payments, then you can always check the credit card EMI calculator on your bank’s website.
The credit card EMI calculator will help you to understand how much you have to pay each month. In addition, you can even change the tenures and see how much more or less you’ll have to pay. Once you arrive at a suitable EMI tenure, then you can go back to the product and finally make your purchase.
Can everyone get it very easily?
It is important that you understand that not everyone can avail the credit card EMI. It is applicable only for those people who have a good credit score. Banks usually tend to convert credit card bills into EMIs for their customers who have a good or a high credit score. It is a preventive measure that helps them to reduce the pressure of loans turning into bad loans.
Want to know if you have a good credit score? The solution is easy. Simply visit your bank’s website and check in the credit card section. If you see that they are providing you with the option of converting the credit card bill into EMI, then that means you are eligible.
How to get a credit card?
Follow these steps to get a credit card:
- First of all, download the Airtel Thanks mobile wallet app on your smartphone.
- Open the app and visit the Shop section.
- If you scroll below, you will come across a credit card banner.
- Select it, fill all the necessary documents required and you will get a credit card from Airtel Finance soon.
Therefore, download Airtel Thanks app and convert your bills into EMI right away!