A step-by-step guide to closing your credit card EMIs

Credit cards have become an essential tool for managing daily expenses and high-value purchases. They provide the convenience of cashless transactions and offer various benefits like reward points, lifestyle privileges, and converting large expenses to EMIs (equated monthly instalments). An EMI allows you to repay the borrowed amount over a fixed period, with applicable interest, making large purchases more manageable. This feature ensures that your financial commitments remain stress-free and aligned with your budget.

What is credit card EMI?
 

Credit card EMI payments enable cardholders to convert high-value transactions into smaller, more affordable monthly payments. It is especially useful for individuals who wish to make substantial purchases without impacting their immediate cash flow.

The IDFC FIRST SWYP EMI Credit Card brings a revolutionary feature that lets you pay EMIs at a flat monthly conversion fee and without any additional interest and processing charges, making it an affordable option for big ticket purchases. You also enjoy an exclusive reward of up to 1,400 points on meeting the monthly spends milestone and a travel discount coupon worth up to ₹2,100 as a welcome offer. 

Steps to close credit card EMI
 

Closing a credit card EMI involves the following steps:

1. Review your EMI plan: Understand your current EMI details, including the outstanding amount, interest rate, and tenure.
2. Contact customer support: Reach out to IDFC FIRST Bank’s customer support through their helpline or official website to initiate the process.
3. Request for EMI closure: Submit a formal request for closing the EMI, which can typically be done online or by visiting a bank branch.
4. Check pre-closure charges: Confirm if any pre-closure fees or penalties apply. Some credit card providers, including IDFC FIRST Bank, may waive off these charges based on certain conditions.
5. Make the payment: Pay the total outstanding amount, including any pre-closure fees, to close the EMI.

Ensure you receive a confirmation from the bank stating the successful closure of your credit card EMIs.

Pros of early EMI closure
 

• Closing your EMIs early can save you money on interest payments, reducing the total cost of the loan.
• Timely or early EMI closure positively impacts your credit score by demonstrating responsible credit management.
• Early closure of your EMIs frees up your monthly cash flow, allowing for better financial planning.

Cons of early EMI closure
 

• Some banks may levy a fee for early EMI closure, which would add to your expenses.
• Paying off a lump sum to close your EMI may strain your finances in the short term.

Tips to manage credit card EMI
 

• Plan purchases wisely: You can use your credit card for necessary purchases that you can easily convert to EMIs.
• Choose suitable tenure: Opt for a tenure that aligns with your repayment capacity to avoid unnecessary financial strain.
• Pay on time: Always ensure timely EMI payments to avoid late fees and negative credit reporting.
• Monitor your spending: Regularly review your credit card statements to stay on top of your finances and avoid overspending.

Conclusion

Understanding how to close credit card EMI payments is essential for every cardholder. With the flexibility offered by the FIRST SWYP Credit Card, you can easily manage EMI payments at a fixed monthly conversion fee without any additional charges. Assess the benefits and downsides and take informed steps to maintain a healthy financial life. By planning your credit usage and EMI closures effectively, you not only ensure better financial discipline but also build a stronger credit profile.