How to convert Credit Card outstanding into EMIs?

February 10, 2021

How to convert Credit Card outstanding into EMIs

Using a Credit Card for big-ticket purchases seems to be the preferable option these days. But when it comes to paying huge bills later, it can be quite burdensome. In such a case, it is better to convert your Credit Card outstanding into EMIs.

 

Nowadays, it is easy to pay for big or small purchases with a Credit Card. With just the swipe of a card, you can perform instant transactions with ease. Any person can avail of a suitable Credit Card from any bank with minimal documentation. Moreover, with every Credit Card payment or transaction, you earn reward points, cashback and discount offers. There are many advantages of having a Credit Card as it gives you the freedom to avail of credit anytime, anywhere. Given the benefit of the credit, some of you may tend to use it repeatedly without realising that the card comes with a spending limit.

You only realise that when you have to pay the outstanding dues on your Credit Card. The mounting bill can be burdensome, but you can reduce the liability by converting your outstanding balance into EMIs or Equated Monthly Instalments. If you’re stuck in a similar situation, you can opt for Credit Card EMI.

Before knowing how to convert Credit Card outstanding into EMIs, let’s get to know the benefits.

Lower interest rate:

While selecting the EMI option on your Credit Card payment, keep in mind that you will benefit from a low-interest rate. Banks usually apply interest based on the outstanding balance on the Credit Card instead of the entire amount. For instance, if your outstanding balance is Rs 50,000, and you have paid Rs 10,000,you will be charged an interest rate on the balance amount, which is Rs 40,000.

Flexible repayment:

By converting your outstanding dues into EMI, you get a longer tenure to repay the credit. Paying in small instalments wouldn’t put a strain on your finances. However, you can avoid the habit of paying the minimum due as it attracts 5% of the outstanding balance. Thus, the dues will continue to grow with interest on the revolving credit.

Credit history:

Credit Card EMIs won’t affect your credit history. In fact, it will help you avoid and prevent yourself from late payment charges, thus mending your Credit score. Thus, converting your Credit Card bill into EMIs will help maintain your credit score.

How to avail of the EMI facility on Credit Card bill?

To convert your outstanding Credit Card balance into EMIs, you can follow any of the three processes:

  • Internet Banking: Log in to Internet Banking with your user ID and password. Then select ‘Convert to EMI’ option under the Credit Card section.

  • SMS: You can also apply for an EMI facility on your Credit Card bill through an SMS. Once you send the SMS on the banking number, you will receive a call from the bank to convert the transaction into EMI.

  • Customer Care: You can directly call the Customer Care of your bank. The bank will ask you for the card details, and in the process, you can apply for the conversion of your Credit Card bills into EMIs.

The bank has the right to approve or reject your request. Before opting for the EMI facility on the Credit Card bill, you can calculate the monthly instalments using the Credit Card EMI Calculator tool.

DISCLAIMER

The contents of this document are meant merely for information purposes. The information contained herein is subject to updation, completion, revision, verification and amendment and the same may change materially. The information provided herein is not intended for distribution to, or use by, any person in any jurisdiction where such distribution or use would (by reason of that person‘s nationality, residence or otherwise) be contrary to law or regulation or would subject lClCl Bank or its affiliates to any licensing or registration requirements. This document is not an offer, invitation or solicitation of any kind to buy or sell any security and is not intended to create any rights or obligations. Nothing in this document is intended to constitute legal, tax, securities or investment advice, or opinion regarding the appropriateness of any investment, or a solicitation for any product or service. Please obtain professional legal, tax and other investment advice before making any investment. Any investment decisions that may be made by you shall be at your sole discretion, independent analysis and at your own evaluation of the risks involved. The use of any information set out in this document is entirely at the recipient's own risk. The information set out in this document has been prepared by ICICI Bank based upon projections which have been determined in good faith by lClCl Bank and from sources deemed reliable. There can be no assurance that such projections will prove to be accurate. lClCl Bank does not accept any responsibility for any errors whether caused by negligence or otherwise or for any loss or damage incurred by anyone in reliance on anything set out in this document. The information set out in this document has been prepared by ICICI Bank based upon projections which have been determined in good faith and sources considered reliable by lClCl Bank. In preparing this document we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to us or which was otherwise reviewed by us. Past performance cannot be a guide to future performance. 'lClCl ' and the 'I-man' logo are the trademarks and property of lCICl Bank. Misuse of any intellectual property, or any other content displayed herein is strictly prohibited.

Comments()