Purchasing goods have become easier now with the numerous benefits and features that credit cards offer. Various credit card companies provide additional perks like discounts and cashbacks when you purchase items from one of their partner merchants.
Also, EMI financing using credit cards is now more profitable than paying the entire amount at a time. You can repay the loan in smaller amounts for a specified period without paying any interest. Making on-time payments will improve your credit score. This will also enable you to apply for a credit card with higher limits or loans in the future.
How do payments on credit card bills work?
Numerous people swipe their credit cards in stores to purchase products or services. Now, let’s see how this whole process works.
Your credit limit is set when you apply for a credit card, and the financial institution approves your application. You can purchase any product of your choice using your card, and accordingly, the company generates your credit bill.
You can pay your credit bill in three ways. First, you can pay the full amount that you have spent on your card within the due date. Thus, you don’t have to pay any interest. It’s an advantage as you get a window of almost 45 days to make the payment. It is because your billing cycle consists of 30 days, and your due date is usually 15-20 days after the billing cycle completes.
Second, you can pay the minimum amount due which your credit card company fixes on the basis of your spending. Then, you carry forward the principal amount in your next billing cycle without incurring any interest.
Financial companies will levy huge interests every day on your utilised credit if you ignore to pay the minimum due as well. So, go for this option when you don’t have enough cash to clear all dues within the due date.
Third and the last, you can convert your credit bill into EMIs. This option allows you to pay off the total amount due in equated monthly instalments. You can avail this feature on the Bajaj Finserv RBL Bank SuperCard to buy various products on EMIs and avail many exclusive benefits.
More about EMI on Credit Card:
EMIs on credit cards are almost like availing loans from a lending institution. Here also, you have to pay the principal amount along with a fixed rate of interest over a stipulated term.
So, you can opt for EMI option to pay off your credit bills in case you don’t have required cash for paying the entire principal amount. The credit card company charges a certain processing fee for this along with interest.
You can avail flexible repayment tenor to clear your credit bill amount in EMIs over a specific period.
However, make sure to look for your credit card’s features and whether it charges comparatively lower rate of interest.
How to Apply for a Credit Card?
If you wish to apply for one, do check the credit card eligibility criteria which preferably should be easier to meet. You can apply for credit card online anytime.
Numerous lending institutions like Bajaj Finserv provide pre-approved offers on credit cards, business loans, education loans, home loans, EMI product financing, and other financial products and services. You can check out your pre-approved offer by giving some of your necessary personal details online. It not only simplifies the whole process of availing fund but also saves your time.