First things first, credit card companies make money by earning interest on late payments that you make. If you are paying off your credit card bills within the due dates then, essentially, you are not contributing to their profits. By enticing shoppers to make easy repayments on their credit card through EMIs, card companies have devised a system to make money. Yes, it does offer the cardholder respite with payment but, in reality, EMI on credit cards works like a loan—you pay the principal and interest each month and clear off your debt over a period of time.

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