Credit Card Bill Filing: It is important to keep these things in mind while filling the credit card bill with EMI, otherwise it may cause loss

Nowadays most of the people have started using Credit Card.

Credit card has the advantage that even if there is no cash, you can make purchases according to your needs and pay it to the bank later. Almost all banks have issued their own credit cards. Credit card bills can also be paid in monthly installment (EMI).

Also Read: EPFO Members Alert! Income tax exemption, pension to free insurance— top 5 benefits that EPF Passbook holder MUST know

If you choose the option of EMI for payment of credit card bill, then it is important to take care of some special things. You can benefit from this. At the same time, if you do not pay attention to these things, there may be a loss. Know some special things related to credit card bill payment.

If you use a credit card to make purchases, you can convert the amount of your outstanding bill into a loan. By doing this you will get more time to repay the loan. This does not affect the credit score too.

For those customers who are unable to pay their credit card bills on time due to some reason, it is better for them to convert their outstanding amount into a loan. They will not have to pay penalty for doing so. Customers will also avoid paying extra.

If the credit card bill is paid within the stipulated time limit, then there is no extra charge or interest. At the same time, if the bill amount is converted into EMI, the bank will have to pay interest on it.

There are various types of charges for paying credit card bills through EMI. In addition to interest, processing fees, prepayment charge and GST are also levied. The customer also has to pay for it.

EMI is a great option for buying anything or paying bills. There is not much amount to be paid in one go. But the bank has to pay more interest on taking longer EMIs. At the same time, if you pay the credit card bill through EMI, then it also has to pay more interest. Therefore, one should try to avail EMI facility for short period of time.

To pay a credit card bill, the option of EMI should be adopted only when there is a big emergency or it is not possible to pay the bill in any way. By the way, we should try to pay the credit card bill before the due date. It does not require extra payment.