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.