Smart ways to use credit card EMI: When to choose and when to avoid

Credit card EMI (Equated Monthly Instalments) is a facility that allows you to convert high-value purchases into manageable monthly payments. It is especially useful when making significant expenditures, enabling you to spread the cost over a period without compromising your cash flow. However, like any financial tool, EMI on a credit card must be used judiciously. Knowing when to opt for this facility and when to avoid it is crucial to maintaining financial health.

When to opt for the credit card EMI facility
 

Opting for a credit card EMI facility is advisable in several scenarios:

• Large purchases: When purchasing high-value items like electronics, furniture, or home appliances, converting the cost into EMIs can make the expenditure more manageable.
• Limited cash flow: If you have a limited monthly budget but require immediate purchases, EMIs allow you to acquire what you need without disrupting your finances.
• No-cost EMI offers: Many retailers offer no-cost EMI options on certain products. This is an excellent choice as it allows you to pay in instalments without any additional interest.
• Emergency expenses: In case of unforeseen expenses, like medical emergencies, EMIs can help you manage payments without financial strain.

When to avoid credit card EMI
 

There are instances when opting for an EMI card might not be the best decision:

• Short-term payments: If you can pay off your credit card bill in full within a short period, it is better to avoid EMI to save on interest costs and processing fees.
• Small purchases: For low-cost items, the benefits of EMI may not justify the potential interest charges and processing fees.
• High-interest rates: If the interest rate on the EMI is high, it might outweigh the convenience of spreading the payments.
• Multiple existing EMIs: If you already have several EMIs, adding another one could strain your finances and lead to debt accumulation.

FIRST SWYP EMI Credit Card features & benefits.
 

The FIRST SWYP Credit Card by IDFC FIRST Bank offers you flexibility and convenience when opting for EMIs. Some of its standout features include:

• EMI payments without interest charges: With the FIRST SWYP EMI Credit Card, you can buy anything in a single swipe and convert it into easy EMIs with a fixed monthly conversion fee and no other interest charges and processing fees.
•  Flexibility to pay in full or convert to EMIs: For purchases above ₹2,500, you have the flexibility to convert payments to EMIs or pay the amount in full.
• Competitive interest rates: Enjoy competitive interest rates that make your EMIs more affordable.
• Attractive welcome offers: Earn 2,000 reward points worth ₹500 on spending above ₹5,000 and 1,000 reward points on your first EMI conversion. You also enjoy a travel discount coupon worth up to ₹2,100 as a welcome offer.
• Earn rewards on milestone spending: Get rewarded for reaching a monthly spending milestone. Earn up to 1400 reward points every month on achieving your spending milestone.
• Deals on popular brands: Enjoy attractive offers and discounts on your favourite brands.
• Easy conversion: Convert your high-value purchases into EMIs easily through your IDFC FIRST SWYP Credit Card.

Credit card EMIs can be valuable when used wisely. Whether for large purchases, managing cash flow, or handling emergencies, knowing when to opt for and when to avoid EMIs is crucial. With the FIRST SWYP EMI credit card, you are well-equipped with features that bring financial benefits. Evaluate your needs, assess the costs, and make informed choices to leverage the full potential of your credit card EMI options.