10 Things to Know Before Applying for a Credit Card With EMI Facilities

Getting a Credit Card with EMI features may be a wise financial move if you know the key points before applying. ‘Credit Card apply’ option can be challenging sometimes, whether it's your first or you are getting a new Credit Card to add to your portfolio. Knowing the facts can help you make the right decisions.

Having Credit Card eligibility is a significant accomplishment since it means that you have met the requirements that enable banks to offer the card.

In this blog, we will list 10 essential things to consider before you opt for a Credit Card apply option.

Things you must know before applying for a Credit Card with EMI

1. Credit Card basics

A Credit Card permits you to borrow funds up to a specified amount and pay it back afterwards with interest. All Credit Cards have charges like annual fees, late payment charges, and interest. It is necessary to compare various schemes and know the terms and conditions.

2. Checking creditworthiness

Your credit score is an essential factor in getting your Credit Card application approved. Lenders look at your past financial history to decide if you are eligible. If you have a poor credit score, it is worth improving it first before applying for approval.

3. Understanding EMI facilities

A Credit Card EMI feature allows you to turn big-ticket purchases into easy monthly payments. Before using this facility, calculate the monthly instalments and the total amount to be repaid using a Credit Card EMI calculator. This will enable you to plan correctly and stay away from financial pressure.

4. Interest rates and fees

Various Credit Cards have different interest rates and charges. One should compare the charges before choosing a Credit Card. Certain cards have higher interest rates but higher annual charges. Knowing the cost structure helps you pick a Credit Card that suits your budget.

5. Verifying eligibility criteria

Every Credit Card has unique eligibility criteria, such as income, age, and employment status. Verifying the requirements before Credit Card apply ensures that you will not be rejected, which has a poor impact.

6. Making payments on time

Paying your bill on time is good for keeping your credit score in check and preventing late charges. Skipping payments can result in penalties and higher interest rates. Automatic payments and reminders can guarantee you never miss a payment date.

7. Managing credit utilisation

Credit utilisation ratio is the proportion of your Credit Card limit you utilise. You should keep it below 30% for a good credit score. Suppose your limit is ₹50,000; aim to keep the outstanding amount under ₹15,000.

8. Using a Credit Card EMI calculator

It is better to utilise an emi calculator before availing of EMI services to know the monthly amount you have to pay. The calculator gives a proper idea of the interest amount you have to pay and assists in choosing the suitable tenure for repayment.

9. Applying for multiple cards

Although you may apply for several Credit Cards, applying for too many in a space of time can negatively impact your credit score.

10. Review terms and conditions

Before applying you need to read the terms and conditions carefully, especially about EMI conversion, interest rates, and repayment options.

To conclude

Getting a Credit Card with EMI facilities can be an easy way to handle expenses, but it involves planning. Before you opt for a Credit Card apply option, verify the credit score, utilise a Credit Card EMI calculator, and thoroughly read the conditions and terms to make the right choice. A smart financial planning approach will ensure that you enjoy the best use of your Credit Card while keeping a healthy financial record.

Note to readers: This article is part of Mint’s paid consumer connect Initiative. Mint assumes no editorial involvement or responsibility for errors, omissions, or content accuracy.

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