Advantages of paying off your bills through credit card EMIs.
In today's cashless society, credit cards have become a vital financial product. They not only offer security and convenience but even empower individuals to manage their expenditures effectively.
One such benefit of credit cards that has proven to be extremely advantageous for many is the EMI facility. This option permits card users to convert their outstanding dues or big-ticket transactions into easy, manageable EMIs.
It is especially useful for the ones who cannot afford huge purchases or wish to pay their debt over a period of time. IDFC FIRST Bank is one such financial institution that offers this facility across its range of credit card variants, making it easier for you to manage your finances.
Discussed here are six benefits of paying off your bills through the credit card EMI facility.
1) Improved cash flow management
Paying bills via credit card EMIs permits you to better manage your cash flow effectively. Instead of paying a huge sum at once, you can spread the cost over time. This way, you can maintain your budget without much financial strain. Moreover, it even ensures you have adequate funds for other vital expenditures and exigencies.
2) Flexible repayment tenure options
Credit card EMI options offer you the flexibility to select a repayment tenure that best matches your financial scenario. You may opt for a repayment tenure ranging anywhere between three and 24 months or even longer, based on your repayment potential and needs.
This flexibility ensures you can choose a plan that is in line with your goals and does not put any undue stress on your month-on-month budget.
3) Competitive rate of interest
One of the main benefits of using the credit card EMI facility is the competitive interest rates offered by banks. These rates are usually lower than the interest rates charged on personal loans or other forms of credit. This makes it a cost-effective option for those looking to convert their outstanding dues into simple EMIs while minimizing the overall interest payout.
4) Builds credit record
Using a credit card EMI facility helps in building a strong credit history. By making timely EMI payments, you demonstrate responsible credit behavior, which is reflected in your credit report. A strong credit record enhances your chances of availing loans as well as other financial products at suitable terms in the future.
Additionally, it can even improve your credit score, which makes you a more attractive credit applicant for lenders.
5) Easy application process
The procedure to apply for a credit card EMI option is simple and hassle-free. You can easily convert your outstanding dues or big-ticket transactions into EMIs by connecting with your bank’s customer care support or via their online portal.
The procedure is quick and the plan for EMI is activated instantly, endowing immediate relief from monetary stress. This convenience saves you effort and time, permitting you to concentrate on other essential aspects of life.
6) Enhances financial discipline
Using credit card EMIs to pay off your expenses teaches you financial discipline. You become more conscious of your spending patterns and probably may make better financial decisions as you are obligated to pay a fixed amount each month. This discipline can assist you to avoid accumulating excessive debt and help maintain a good financial lifestyle.
Ending note
The credit card EMI option is an efficient and practical solution for managing your big-ticket expenditures or converting your outstanding dues into easy, payable instalments.
With its various advantages, such as flexible repayment tenure options, improved cash flow management, competitive rate of interest, and a simple application procedure, this facility can considerably ease your monetary burden and assist you in maintaining a healthy credit profile and score.
So, if you find yourself struggling with outstanding credit card debts, consider using the EMI facility to gain back control over your finances.
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