Credit Card

Learning how to convert credit card bills to EMI can help you split large expenses into affordable instalments to reduce the lump sum payment burden. Be it planning a surprise holiday for your family or buying something expensive, you can easily fit it all into your budget without worrying about a large upfront payment thanks to easy instalments. 

However, to begin with, you will have to understand this facility and avoid the mistakes that can hurt your credit score. Thus, it’s essential to know the basics along with the essential benefits before diving into the process.

Basics of Converting Your Credit Card Bill into EMI

Suppose you want to buy an air conditioner costing ₹50,000. If the price is more than you have budgeted for, paying for it in one go can hamper your other monthly obligations. This is when you can use the EMI conversion option to ease the repayment process. So, without spending ₹50,000 in one go, you are paying ₹4,200 for the next 12 months.

How Does it Work?

You can find several issuers that offer this option on most of their cards. It has made it easier for customers to buy products and repay the cost within an extended period. Initially, the bank pays for the product you bought with the credit card. Within the reimbursement period, you then repay the amount to the bank.

This feature comes with added interest if you are opting for longer repayment tenure. But, in most cases, if you go for a shorter repayment tenure, you can avail the zero-cost EMI option for the product you bought. Look for cards that offer a no-cost option so you do not need to pay added interest on the cost of your purchase. 

Benefits of Converting Your Credit Card Bill into EMI

If you are using this option, here are some added benefits you can expect to receive:

  • Low Rates of Interest

The interest you pay for the EMI conversion is generally more affordable and manageable compared to regular credit card interest rates. Moreover, the interest rate will be applied to the remaining amount only. 

For example, assume that the cost of your AC is ₹50,000, and you have opted for a 5-month EMI. Now, you already paid ₹10,000. So, the interest is applicable to the remaining ₹40,000.

  • Flexible Repayment Option

As stated earlier, you can choose your repayment tenure as per your needs and flexibility. You can repay the loan in 3 months or in 36 months, based on the options your card issuer and merchants give you. The choice is completely yours. This makes it easy for you to tailor repayment for maximum convenience. 

  • Improved Credit Score

When you pay your EMIs on time, you improve your credit score and are actively building on your repayment history. These are the two main deciding factors to increase your credit limit. You can also upgrade your credit card if you can improve your score. 

How to Convert your Credit Card Bill to EMI?

You will find several options to convert your bill into EMI. However, you have to start and complete this step before your next credit card billing cycle. Using internet and mobile banking are the easiest and fastest options, for which you have to follow these steps:

  • Step 1: Log in to your internet or mobile banking account with your ID & password
  • Step 2: Go to the ‘Convert to EMI’ in the credit card tab
  • Step 3: Choose your tenure and read through the interest and any additional costs you will have to pay
  • Step 4: Continue with the payment process to repay your loan

This is how to convert credit card bills to EMI online. However, you can also get it done through other options like the SMS facility or by contacting customer care. You can find the contact number and instructions on the issuer’s website. 

Key Factors You Should Remember Before Choosing This Option

Before going for the EMI facility, take a moment to think about the following: 

  • Overall Cost – Find out the cost you’re paying with interest on EMI and how much it differs from the original price.
  • Impact on Credit Utilisation – Figure out whether this purchase impacts your credit utilisation in a big way or not. 
  • Foreclosure Charges – Find out whether your credit card issuer allows you to foreclose your loan or if it imposes charges on prepayments. 
  • Processing Fees – Find out whether there are any processing fees involved when you convert your credit card bill into EMIs.

Once you understand all of these factors, you can easily apply to convert the credit card bill into instalments. Opting for the EMI option is a great way to make larger purchases without hampering your credit score or your monthly budget. 

Another way to save more is by utilising the issuer’s offers and discounts or using your reward points. If you are looking for a credit card that is ideal for extending all these benefits, then you must consider the One Credit Card. 

It helps you find exciting deals across various categories and products. Moreover, you can earn 5X monthly reward points on your top two spending categories, which are redeemable across all categories. Using the OneCard app you can easily convert your bills and purchases into no-cost EMIs in a few taps. Download the app or visit the website to apply now to apply for the lifetime-free One Credit Card. 

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