When used as a payment method, credit cards give the cardholder instantaneous access to credit by covering the costs of purchases on their behalf. Yes premia credit card EMIs come in a wide variety of forms, making it easy for cardholders to manage their finances, get credit when they need it, and shop whenever they want, whether they are unable to pay off their balances in full, prefer paying in smaller instalments, or have a temporary cash flow shortage.
So, after submitting a yes bank credit card application, let’s discuss some of the benefits of using EMIs.
Get a lower interest rate on your overdue credit card balances and pay them off.
Customers who don’t pay off their credit card balances in full by the due date are hit with exorbitant financing fees, often between 23% and 49% per year. If a credit card bill isn’t paid on time, the credit card company can charge a late fee of up to Rs 1,300 per billing cycle, regardless of the amount due. In addition to the various fees and penalties, the interest-free period on future and existing yes premia credit card transactions will be revoked until all outstanding debts are paid in full. You could get into a debt trap and lose control of your finances if you consistently fail to pay off your yes bank credit card balance in full by the due date.
So, if you want to avoid falling into debt traps like these, converting your credit card amount (or at least a portion of it) into a monthly payment plan is a good strategy. There are hefty finance charges added to overdue bills, often at a rate much higher than the interest accrued on EMI conversions. The interest rate for the EMI conversion choice is established by the card issuer after considering the risk associated with the cardholder’s credit history.
You can meet your spending requirements without draining your cash reserve.
Most credit card issuers provide a range of EMI conversion terms from 3-60 months, with the exact terms dependent on the type of EMI chosen. Rather than being forced to make a hefty, upfront payment, credit card holders can instead pay off their balances in manageable, affordable instalments through EMIs.
Credit cards allow consumers who are tight on cash to make purchases and then have them converted into EMIs in instalments that don’t drain their bank accounts too quickly.
Aside from other retailers, there are no fees associated with Payment plans with interest are a possibility.
One sort of merchant EMI programme requires just that the consumer repay the purchase price in EMIs, with no interest charged, at least on the surface. The merchant or manufacturer covers the expense of the loan’s interest. Actually, there is no expense involved. People are increasingly interested in applying for credit cards online because of the attractive monthly EMIs they provide.
Keep in mind, though, that the GST owed on the interest portion must be paid by the cardholder. Credit card companies, for example, may incentivize their customers to use no-interest EMIs by giving them access to additional discounts and cash-back offers from participating retailers and manufacturers.
In addition to the aforementioned no-interest EMI programmes, many brick-and-mortar and online stores also provide EMI facilities for yes bank credit card purchases. Credit card companies and a given manufacturer or retailer work out such EMI options as part of an agreement. Even though the agreements set the terms and rates, the EMI interest rates offered by merchants are typically more favourable than the EMI conversion rates.
To this end, consumers who plan to use their credit cards for pricey purchases should research whether or not the stores or websites from which they plan to buy accept merchant EMI offers. To get their hands on a yes premia credit card with this capability, they can apply for a new card.
Cardholders need merely notify participating retailers of their intent to use the EMI offer, albeit on e-commerce platforms, customers must actively choose the proper option in order to use the EMI offer.
A loan might provide you with quick cash to cope with unexpected expenses or a budget shortage.
According to the Federal Reserve, credit card companies are required to extend yes premia credit card loans to consumers with solid repayment records and high credit scores. You may have heard of these as “pre-approved loans,” and they are often authorised up to the cardholder’s credit limit. Your credit limit will initially be set at the approved loan amount but will increase as you make monthly payments. On the other hand, some credit card companies are more likely to provide a credit card loan where the borrowed sum is in excess of the credit limit and thus the limit is not reduced.
When you apply for a credit card, the issuer may already have accepted you for a loan, eliminating the need to seek for a loan against credit cards separately.
These loans also have one of the shortest processing and funding times available. Credit card companies boast that the funds from approved credit card loans can be made available the very same day an application is received, making it one of the quickest ways to deal with urgent expenses or unanticipated costs like medical bills.
Yes premia credit card loans often have repayment periods anything from 6 months to 60 months, with payments split up into equal monthly chunks (EMIs). Although the interest rate for yes bank credit card cash advances varies from issuer to issuer and from credit profile to credit profile, it is often higher than the interest rate for personal loans offered by the same issuer to borrowers with the same credit profile.
Lastly, now that you are available of various credit card related EMI options, just remember that never make any credit card transaction which you think is beyond your repayment capacity, because ultimately you need to repay the bill next month, failing which various charges will get levied, besides even at worst, punishing your credit score too.