Managing a large credit card bill can be stressful. If you’re facing a high outstanding balance, converting it into EMIs can help you repay the amount in smaller, manageable installments instead of paying it all at once.
Why Convert Credit Card Outstanding into EMIs?
Using credit cards for big purchases is common, but paying off the full amount later can be challenging. By opting for EMIs, you can ease your financial burden while avoiding high-interest charges. Most banks provide flexible EMI options with minimal paperwork, making it easier to manage payments.
Benefits of Converting Credit Card Outstanding into EMIs
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Lower Interest Rates
Credit card EMIs typically have lower interest rates than regular credit card charges, which can go up to 36% annually. Banks also offer promotional low-interest rates, making EMI conversion a cost-effective way to manage outstanding balances. -
Flexible Repayment Options
EMI conversion allows you to choose a tenure that suits your financial situation, ranging from 3 to 24 months. This helps break down a large amount into smaller, more manageable payments. However, it is advisable to avoid paying only the minimum due, as it attracts high interest over time. -
Maintains Credit Score
Converting your balance into EMIs prevents late payments and helps maintain a good credit score. Timely EMI payments reflect positively on your credit report, improving your chances of securing loans and higher credit limits in the future.
How to Convert Credit Card Outstanding into EMIs
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Internet Banking
Log in to your bank’s internet banking portal and navigate to the credit card section. Select the ‘Convert to EMI’ option, review the available tenure and interest rates, and confirm the conversion. Some banks may charge a processing fee, so check the terms before proceeding. -
SMS Request
Send an SMS to your bank’s official number with the required details. Once your request is received, a bank representative will contact you to confirm and process the EMI conversion. Ensure that you send the SMS from your registered mobile number. -
Customer Care
Call your bank’s customer care service, provide your credit card details, and request EMI conversion. The representative will guide you through the available options and applicable interest rates. Once approved, you will receive a confirmation message and an updated billing statement.
Key Considerations Before Opting for EMIs
Banks have the discretion to approve or reject EMI conversion requests. Before proceeding, use a Credit Card EMI Calculator to estimate your monthly payments. This will help you plan your finances better and avoid unexpected charges.
Would you consider converting your credit card outstanding into EMIs to manage payments more effectively?