Today, we have the option to buy items like mobile phones, TVs, fridges, and washing machines through EMIs using credit cards.
Especially, the ‘No Cost EMI’ ad attracts many. But you shouldn’t assume there are absolutely no charges involved.
In some schemes, the seller might offer a discount equal to the interest amount. At the same time, you might face Processing Fees, GST, and other conditions.
Before opting for an EMI, find out the total amount you need to pay, the monthly installment, if there is any interest, and if there are charges for foreclosing the loan.
Don’t hand over your credit card to friends or relatives!
A credit card in your name ties directly to your financial responsibility. You must be careful when friends or relatives ask for your card to make purchases.
Even if they delay repaying you for the item they bought, the responsibility to pay the bank falls solely on you.
Also, never share confidential details like card numbers, CVV, PIN, or OTP with anyone. Even if you trust them, do not violate safety rules.
Don’t use a credit card without reading its terms and fees!
When getting a credit card, you must know details like the Annual Fee, Renewal Fee, Interest Rate, Late Payment Fee, and Cash Withdrawal Fee.
Even if some cards advertise as ‘free’, specific conditions might apply. Some cards waive the annual fee only if you spend a certain amount in a year.
Similarly, there could be a Foreign Currency Mark-up Fee for international transactions or extra charges for specific transaction types.
Therefore, read the Most Important Terms and Conditions (MITC) document before getting a card.