Live the life you want. Convert your Credit Card outstanding to EMIs at lower interest

Do you aspire to live the good life? The good life can mean different things to different people: some are passionate travellers, while others are tech-savvy, and some seek to provide household comforts for the family. So, no matter whether you enjoy a night out, travel the world or need the latest iPhone, every small and big-ticket purchase is conveniently possible with a credit card. 

Fuel your lifestyle with Credit Cards
 

As an urban consumer, you have various lifestyle and professional needs, and a credit card serves as the absolute expense tool to meet the same. Credit cards not only eliminate the need to carry a lot of cash in- on your person, offer attractive discounts with various offline and online channel partners, but most importantly, allow you to convert credit card outstanding to EMI. Thus, you can repay the outstanding amount in a pocket-friendly manner. You could rehaul your entire home entertainment system in one go or enjoy a much-deserved holiday with your credit card and figure repayment on your own terms.

Convert your Credit Card purchase to EMI
 

Banks allow customers to convert transactions beyond a specific threshold into individual EMIs. Except for purchasing jewellery jewelries and precious metals such as gold and silver, you can convert expenses across all categories into EMIs.

For eligible transactions, you have the flexibility to choose the tenure, with EMI options usually ranging from three to 36 months. The processing fee and applicable rate of interest vary depending on the amount, tenure you choose and, in some instances, your credit standing.

Let’s understand this with an example.

Assume you booked airline tickets and stay for yourself and a friend at a foreign location billed to your credit card. Additionally, you also spent on dining and entertainment with your card in local currency abroad and chose to pay it through EMIs for six months. Assuming your service provider charged you interest at 24%, this is what your repayment details would look like.

When looking for EMI options, you can opt for a shorter or longer tenure based on your financial situation. The shorter the tenure, the higher the EMI and vice versa. Yet, you should not needlessly choose a longer tenure as the interest cost will keep adding up.

Also, a longer tenure means a proportionate amount of your credit limit is blocked, which only frees up as you repay the EMI. If you have another necessary purchase coming up in the future, you may not be able to bill it to your credit card if the free balance is unavailable.

If you have the financial means, always pay your credit card bill in full. However, when you convert credit card outstanding to EMI, it allows you to defer the credit card bill payment and use the cash for more pressing needs. Additionally, judicious use of EMIs and a healthy repayment history show you are a trustworthy borrower and work positively for your credit score.

Reduce your interest repayment with balance transfer
 

It is common for most banks to charge anywhere between 24-36% interest for the instant credit facility. But, a balance transfer feature can help you save on your total liability. You do so by moving your outstanding debt from a higher-interest card to another low-interest credit card. 

IDFC FIRST Bank, for example, has amongst the lowest Annual Percentage Rate (APR) or interest rates, charged starting at 18%! You can transfer your outstanding balance from any other Indian credit card provider to your IDFC FIRST Bank credit card and save a considerable amount on interest repayment. Considering the example stated above, if you chose to avail of IDFC FIRST Bank’s balance transfer benefit for the same six-month tenure, your repayment details would look like this:

With IDFC FIRST Bank’s balance transfer facility, you could save Rs 4,190 on interest charges for just this trip. Apply the same to various other purchases you make throughout the year, and you’re looking at a substantial kitty of savings.

In addition to the industry-best interest rates, you can also benefit from some of the best offers on credit card bill payments, such as:

• Low processing fee: IDFC FIRST Bank only charges a 1% processing fee on the transferred amount compared to the 2% charged by most other service providers.
• Flexible tenure: IDFC FIRST Bank offers flexible tenures of 3, 6, 9, 12 and 18 months on a balance transfer of credit card payment. To top it off, you get an additional grace period before your repayment schedule starts.
• 10X reward points: With most banks, you lose the reward points on converting transactions to EMIs. However, when you avail of a balance transfer facility with IDFC FIRST Bank, you earn 10X rewards on the total amount transferred, which can be utilised for other value-added benefits or converted to Rupee value and offset against your outstanding balance.

Make the smart choice
 

IDFC FIRST Bank credit cards are perfect lifestyle facilitators for urban Indians. If you don’t have an IDFC FIRST Bank credit card, apply for one here right away and get 5% cashback as a joining benefit and further reduce your balance transfer due. More importantly, streamline savings on future purchases with IDFC FIRST Bank cards that offer deals and discounts at over 300+ partner establishments. 

Enhance your life with IDFC FIRST Bank credit cards!

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.