One of the main reasons people get attracted to using credit cards is the ease with which they conduct transactions. When they convert the outstanding debt into easy EMI, it increases the purchase power as they can buy a high-priced item without worrying about breaking into their account balance.
Are you planning to buy an air-conditioner for your parents or planning to surprise them with their first flight tickets, or simply trying to buy a recently launched gadget for yourself – but don’t have the budget for it at present? Whether you use them for emergencies or otherwise, credit cards provide many benefits which outweigh the doubts of the naysayers. So, should you convert your purchases into EMIs?
Manage Debt Easily
With EMIs, you can decide what amount you are comfortable paying each month according to your current financial situation. If you want to get out of debt faster but can’t make the payment in full at once, then you can choose a shorter tenure for EMIs.
Another credit card benefit that you may have noticed while shopping, many retailers provide the option of converting a purchase to EMIs using a credit card. This happens when credit card providers collaborate with major shopping sites to provide this facility to the customers at the point of sale (POS). You have the purchasing power in your hand and decide the EMI amount you want at flexible tenure options. The transactions are transparent as you get notifications from your credit card provider as well as the retailer where the purchase is done followed by MFA (multi-factor authorisation) to prevent any fraud.
Improve Credit Profile
With easy EMIs, you get a chance to improve your credit score easily, in a short duration. For instance, if you have been using your credit card responsibly and made payments on it through EMI or minimum due or pay in full every cycle, then you are improving your credit score for the future. When you are ready to make a lifelong purchase, such as a home loan, the credit score will be an important factor to consider by your bank.
One of the most attractive features of a credit card is that there is absolutely nil or zero paperwork required when you convert transactions to EMIs. After going through multi-factor authentication, all you have to do is make the final purchase and convert it into EMIs without stressing about signing any documents!
Consider this – you are planning to surprise your loved ones with a major purchase but do not want to break your bank. The best option is to convert the transaction into EMIs with a repayment tenure of your choice as per your affordability. Many banks offer convenient repayment tenures such as 6 months, 9 months, or 12 months for you to repay the debt easily. You can enjoy the festivities, exchange gifts, live in the moment, and worry less about debiting your account with a large amount!
If you don’t have one, you can easily apply for a credit card online as well. Banks understand that customers are looking for convenience and financial responsibility at the same time. Hence, availing of the EMI feature from credit card providers is a great deal.