Struggling With A High Credit Card Bill? Here's How EMI Conversion Can Help

It’s easy to use your credit card while making big payments. However, it becomes difficult to clear huge bills later. If you have ever faced such a situation, then converting your outstanding amount into equated monthly instalments (EMIs) is a wise decision to make.

True, you can easily shop using your credit card. All you need to do is swipe your card, and the transaction is made right away. Nowadays, banks provide their customers with credit cards without any paperwork. Also, with every swipe, you get reward points, cashback offers and discounts. Credit cards allow you to access credit wherever you go at any time of the day. However, people tend to use their credit cards for almost every shopping spree, which results in a high outstanding amount.

You only realise your mistake when you see your bill crushing you with a high due amount. It can be overwhelming to pay such a huge amount of money. So, what you can do is convert your outstanding balance into EMIs. If you find yourself in this situation, then paying through credit card EMIs is indeed a wise decision

Reasons To Convert Your Credit Card Outstanding Into EMIs

Interest Rates Are Low

By opting for the EMI option, you lower your interest charges. Banks charge interest only on the outstanding amount. They don’t charge interest on the entire amount. Let’s say your outstanding balance is Rs 40,000 and you pay Rs 15,000 towards it. Now interest will be applied on the remaining Rs 25,000 only. Which is why clearing your credit card dues through EMIs is a much better option.

The interest rate on EMIs is also lower than your card’s usual interest rate. Credit cards have a very high interest rate. Some banks charge up to 46 per cent interest per annum on the credit card bills. Most banks provide you with a low-interest promotional rate when you convert your balance into EMIs. Which means you won’t have to pay a lot of interest, and you can pay your dues in smaller portions. When you opt for the EMI option, you are splitting a large payment into small ones.

Flexible Repayment Option

EMIs provide you with the luxury to repay your dues over a stretched tenure. Opting for small instalments makes the burden easier on your pocket. However, make sure you don’t end up paying the minimum due amount. It incurs additional charges on the outstanding amount, resulting in you drowning deep into a pool of interest.

Several banks have brought out EMI repayment tenure options for your outstanding credit card amount. You can get flexible EMIs between the tenure of 3 months and 24 months. You can choose the repayment option as per your affordability.

When you are hit with a financial crunch, converting your balance into EMI will help you avoid missing out on your payment deadline. An advantage of having EMIs is that you know there’s a fixed amount to be paid every month. This helps you avoid unnecessary penalties.

Credit Scores Are Maintained

EMIs will never harm your credit score. When you convert the outstanding amount into EMIs, you avoid paying late charges, which in turn helps improve your credit score.

By paying your credit card EMI every month, you’re ensuring that your credit score doesn’t fall. Your credit score affects your ability to secure loans or get approved for credit in the future. So, by paying EMIs, you’re guaranteeing that you don’t miss out on payments. Late payments or revolving a high balance on your card can adversely affect your credit score, lowering your chance of acquiring a loan. Opting for credit card EMIs can help you steer clear of these circumstances. You can also raise your credit limit if you have a healthy credit repayment record.

How To Convert Credit Card Outstanding Into EMIs

1. SMS Request

Simply send an SMS to your bank’s designated number. You will shortly receive a call from your bank asking you to confirm the request for conversion into EMIs. Many banks offer a specific format to be followed when you send an SMS for a credit card EMI request. You may be required to send your card number along with a pre-set code to the bank’s number. Upon entering your request, you will be contacted by your bank’s representative, who will discuss the EMI plans they have to offer.

Remember to send the SMS from the phone number registered with your credit card. Make sure to read the terms and conditions mentioned in the SMS. A few banks might also require you to follow additional authenticity checks. Keep a lookout for the SMS inbox for the confirmation of EMI conversion.

2. Internet Banking

Simply log in to your internet banking account. Click on the ‘Convert to EMI’ option available under your credit card section. Most banks offer an option to convert to EMI under the ‘Manage Credit Card’ section. Upon clicking that option, you will be routed to the various tenures you can select and the interest that will be applied to your outstanding amount. Read through the terms and conditions mentioned before you select your plan. Some banks charge a fee for EMI conversion. So, look out for that. Once you have selected your desired EMI plan, the respective amount will be shown as monthly instalments during your billing cycle.

Opting for EMIs is super quick through internet banking, and there is absolutely no paperwork needed.

3. Customer Care

Call up your bank’s customer care executive. Fill in your card details and request them to convert your outstanding balance into EMIs. The customer representative will walk you through the process and the EMI plans that you can avail. Remember to have your credit card information before dialling into customer care. Some banks may also run a few security checks before processing your EMI request. Once your request has been processed, you will receive a confirmation SMS and your new billing statement.

If you prefer personal interaction with someone, you can definitely opt for this method. Calling into customer care will also help you clear any doubts regarding the interest that will be applied to your balance, tenure and any additional processing fees. Take note of the reference number for your EMI request for future purposes. Once you have made the request, the bank may accept or decline your request.