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Credit Card Payment: Follow THESE steps to prevent money losses, penalty & fraud
Even while EMI on a credit card can be practical and easy, there are a few things to consider before choosing EMI.
New Delhi: E-commerce and different shopping platforms are offering discounts, and cashback offers as the festive season is approaching rapidly. Most of these offers are on credit and debit cards. Are you a Credit card holder? This is the right time for you right now for shopping through credit cards because festivities are just around the corner.
Credit cards provide you the freedom to buy goods now and pay for them later in EMIs or installments. When you convert the amount into EMI, you make monthly installment payments on the balance due, exactly like you would for a loan. The flexible repayment period for credit card services is from three to thirty-six months.
Even while EMI on a credit card can be practical and easy, there are a few things to consider before choosing EMI.
Processing charge
There is a processing charge associated with credit card EMI plans. It is advised to speak with the card issuer about the fee before choosing conversion.
Rate of interest
Your credit card service provider will further charge interest on the amount that is to be converted into an EMI in addition to the processing fee. Numerous e-commerce sites also provide free-cost EMIs, which require no additional payments.
Credit card balance
Before making a payment or turning your transaction to an EMI, always check the card's available credit. The EMI request may be denied if there is not enough credit available.
Credit Balance
The card provider will block the outstanding amount if you are converting a transaction to an EMI. The blocked amount will be released and applied to your credit balance as you make EMI payments. The whole credit balance will start to rise in this manner.
Foreclosure fee
If you decide to foreclose, a fee plus GST will be assessed.
Missed EMI?
You will be assessed late fees in addition to additional costs if a payment is missed. Additionally, there will be an increase in interest. You should be aware that missed payments may lower your credit score.