5 factors to consider before choosing a credit card EMI

Many credit card issuers allow customers to turn big purchases made with their cards into recurring monthly payments known as EMIs (Equated Monthly Instalments)

But EMIs can be a significant burden for your financial security if they are not paid on time

There are various factors and points you may consider before opting for a credit card EMI

Repayment tenure The normal payback period may be 3 months, 6 months, 9 months, or 12 months long.

If you chose to convert your EMIs, you must be sure to pay the total balance (together with the EMIs) by the deadline.  Penalties may take the shape of high interest rates that range from 25 to 40%.

Offers and discount In general, credit card companies don't give extra discounts or reward points for transactions that are turned into EMIs.

Processing fee The bank or credit card issuer often charges a one-time processing fee for an EMI option

Credit limit deduction When you choose a credit card EMI, the whole transaction amount—not just the EMI amount—is subtracted from your credit limit.