Credit cards, when used as a means of payment, allow the user to obtain rapid credit access by funding the transactions on their behalf. For those best hdfc credit card users who are unable to repay their debts in full, prefer to pay for goods and services in smaller instalments, or simply require funds to cover financial shortfalls, there are various types of credit card EMIs available for their convenience in managing their spending, obtaining credit, or making purchases.
So let’s go over some of the advantages of using credit card EMIs after going for a credit card apply online.
Pay off your past-due credit card debt at a cheaper interest rate.
When credit cardholders fail to pay their credit card bills in full by the due date, they are subject to steep financing charges ranging from 23 percent to 49 percent per annum. In addition to this, failure to settle even the smallest amount owing results in the imposition of late payment fees that can go as high as Rs 1,300 per billing cycle, depending on the amount owed and the credit card issuer. Furthermore, in addition to the aforementioned fees and penalties, failure to pay credit card debts results in the revocation of the interest-free period on new and best hdfc credit card transactions, which continues until the full amount of existing debts is paid. As a result, continuing to fail to pay off your entire credit card account by the due date may place you in a debt trap and cause you to lose control over your finances.
So, one of the most effective strategies to prevent slipping into such debt traps is to convert your full credit card balance, or a portion of it, into a monthly payment plan. Unpaid debts are subjected to substantial financial costs, which are typically significantly higher than the interest rates incurred on EMI conversions of debt. According to the card issuer and their risk evaluation of the card users’ credit profile, an interest rate for an EMI conversion option is determined. Just like you go for a credit card apply online, you can apply or request for EMI facility too.
Without sacrificing liquidity, you can finance your consumption needs.
The repayment period offered for credit card EMI conversion typically runs between 3 months and 60 months for most card issuers, depending on the EMI type that has been selected. Credit card users can simply settle their dues in smaller tranches in the form of EMIs, and that too at a lesser cost, depending on their repayment capacity, rather than being burdened with a single large payment.
Hence, consumers who are short on funds for their consumption requirements can purchase products and/or services using credit cards and then have those purchases converted into EMIs, either individually or as a whole or in part, without having their liquidity negatively impacted.
No cost and other merchant EMI deals are available.
An EMI scheme with no interest cost, at least on the face of it, is a type of the merchant EMI scheme in which the interest costs of the loan are paid for by the merchant or the manufacturer, and the customer is simply obliged to repay the purchase price in the form of EMIs. In fact, no-cost EMIs are becoming a big reason and attraction point for people to opt for a credit card apply online nowadays.
Keep in mind, however, that the cardholder is responsible for paying the GST due on the interest component. Some card issuers like those of best hdfc credit card, in addition to offering additional discounts or cash backs to their credit card users who make purchases using no-cost EMIs, do so in order to leverage their respective relationships with merchants and manufacturers, among other things.
Furthermore, many retailers, merchants, and e-commerce websites offer EMI facilities on their goods and services purchased using the best hdfc credit card, in addition to the no-cost EMI programmes mentioned above. Such EMI choices are made available in accordance with the agreements reached between credit card issuers and a certain manufacturer or retailer. While the duration and interest rates are determined by the agreements, merchant EMI interest rate offers are often more favourable than the interest rates charged on EMI conversions.
For this reason, credit card users looking to make large-ticket purchases should check with e-commerce portals and physical businesses to see if they may take advantage of merchant EMI offers on the items they want to buy. They can even go for a new credit card and apply online
to avail of a new and better credit card that offers this feature.
Cardholders are only required to advise the involved stores whether they intend to take advantage of the EMI offer or not; however, on e-commerce platforms, the customer is required to select the appropriate choice in order to take advantage of the available EMI offer.
Instant credit is available through a loan to help you with financial emergencies and shortfalls.
Credit card issuers will offer loans against credit cards to customers who have a strong repayment history and a good credit profile, according to the Federal Reserve. These are referred to as ‘pre-approved loans,’ and they are often sanctioned against the cardholders’ available credit limit. Although your credit limit is immediately restricted to the amount of the loan sanctioned, it progressively becomes available as you continue to make payments on your credit card loan. Some credit card issuers, on the other hand, are more likely to offer a credit card loan in which the loan amount is greater than and beyond the credit limit, resulting in the credit limit not being blocked.
Because credit card loans are pre-approved, you don’t need to separately go for a loan against a credit card apply online as the issuer itself usually offers it to select customers.
And these loans can be processed and disbursed in one of the quickest time frames among all loan choices. Credit card issuers claim that they can typically release the credit card loan on the same day that the application is submitted, making these loans one of the most expedient means of meeting immediate financial needs or meeting unforeseen financial obligations, such as medical bills.
Loans against the best hdfc credit card have payback terms that typically run between 6 months and 60 months, with repayments made in smaller tranches in the form of equated monthly instalments (EMIs). While the interest rate for such loans typically varies depending on the card issuer and the credit card holder’s profile, it is frequently a notch higher than the interest rates for personal loans issued by the same issuer to cardholders with the same credit profile.