Credit Card EMIs: A Smart Way to Manage Big Transactions—Here’s What You Need to Know!

Struggling with a huge credit card bill? Converting big-ticket transactions into EMIs can help ease the pressure by breaking payments into smaller, manageable amounts. But there are a few key things to consider before opting in. Let’s break it down!

1. How to convert transactions into EMIs?

  • Check if your credit card is eligible via net banking or phone banking.
  • Log into your bank’s portal & select transactions to convert.
  • Not all transactions are eligible—gold, fuel, gambling & cash withdrawals are usually excluded.

2. Time limit for EMI conversion

  • Some banks allow conversion only within 30-60 days from the transaction date.
  • If your purchase exceeds this timeframe, you may not be able to opt for EMIs.

3. Impact on credit limit & score

  • Your credit limit gets blocked equal to the EMI transaction amount.
  • Example: If you convert ₹70,000 into EMIs on a ₹7L limit card, your new available limit = ₹6.3L.
  • This affects your Credit Utilization Ratio (CUR). Keep CUR below 30% to avoid hurting your credit score.

4. Do EMIs affect credit score?

  • No negative impact if you make timely EMI payments.
  • Late payments can harm your score, but regular EMI payments can help maintain a good credit history.

5. Interest rates & charges

  • EMI interest rates: 1%-1.75% per month (lower than 3%+ revolving credit card interest).
  • One-time processing fee: 2%-3.5% of the transaction amount.
  • Minimum transaction amount: ₹1,500.
  • Tenure options: 3 to 48 months.

6. Final takeaway

  • EMIs help in managing big expenses.
  • Always check interest rates & processing fees.
  • Maintain a low CUR to protect your credit score.
  • Never miss EMI payments to avoid penalties.