Plastic money i.e. credit cards has now become the first choice of most people for payment. There are many reasons for this. Firstly, the use of credit cards is very convenient. Reward points are also available on it. Also, attractive offers are available on purchases made with credit cards during the festive season.
Credit card is a profitable deal for all three i.e. buyers, shopping platforms, and banks. Buyers get a good deal. Sales of companies increase. At the same time, the transaction of the bank or financial institution issuing the credit card also increases. But, some things must be kept in mind while using a credit card.
How to use a credit card
The priority while using a credit card should be that the bill is always paid on time. This will save you from paying huge interest and a late penalty. Also, if you want to buy a fridge or washing machine and are not in a position to pay the money together, then you should use no-cost EMI.
What is no-cost EMI?
No-cost EMI gives you the facility to pay money on EMI without any interest. However, interest is usually included in the price offered by the brand. For example, you are buying a washing machine worth Rs 30,000 on no-cost EMI. In this, the retailer may have already included the interest amount in the offer given to you. But, interest will still be applicable, which will increase your monthly installments slightly.
On which products no-cost EMI is available?
Finance companies mostly offer no-cost EMI facilities for expensive items like electronics, furniture, and gadgets. In this, you get the facility to repay your payment in 6-9 months. With this, you can buy your favorite things in the festive season without going out of your budget. This no-cost credit card is an easy way for consumers to divide big expenses into small installments without interest. Partner merchants provide this option.
Use no-cost EMI responsibly.
You should use no-cost EMI responsibly. You should avoid buying non-essential things in the greed of no-cost EMI. It should always be kept in mind that the money spent on the credit card is also a loan, which you have to repay on time. Otherwise, your credit score may be affected and in the future, you may face difficulty in taking a loan from any financial institution.
How to manage credit card
To avail of the facility of no-cost EMI, understand the terms and conditions well.
Also, check the extra or hidden costs included in the price of the product.
Shopping should be done only if the EMI fits into your monthly budget.
All your EMIs should never exceed 40 percent of your in-hand income.
If the credit card dues increase, use savings to eliminate it.
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