Converting Credit Card Payments To EMIs: Here’s What You Need To Know

Converting Credit Card Outstanding Into EMIs

If one is unable to pay a credit card bill in full, then the outstanding amount can be converted into EMIs to avoid high interest rates.

Bill 

The first thing one needs to check is whether the bill is eligible for conversion into EMIs. If it is, then it can be done either online or by calling the phone banking officer.

Credit Limit 

The converted amount is blocked from the credit limit, thus reducing the available credit for new spending.

Credit Score

Converting outstandings to into EMIs does not impact the credit score as long as one makes timely payments. However, missing EMI payments can lower the score.

Interest Rate

Regular credit card interest rates can go up to 42 per cent annually, whereas EMI interest rates range between 12 per cent and 18 per cent, making EMIs a cheaper option.

Compiled by Syed Muskan

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