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Credit Card vs No-Cost EMI: Choosing the Best Payment Method for Festive Shopping
- •Festive shopping offers and discounts make payment methods crucial in determining your total expense.
- •Paying with cash or UPI avoids debt but causes you to miss out on exclusive bank card discounts.
- •Credit cards offer instant discounts and reward points, but high interest applies if bills are not paid in full on time.
- •No-Cost EMI spreads out expenses, but processing fees, GST, and lost discounts can increase the actual cost.
- •Experts advise calculating the final total payment rather than just looking at low EMIs or nominal discounts.
Key Questions Answered
While No-Cost EMI appears to offer interest-free installments, it often involves extra expenses such as processing fees ranging from 199 to 299 rupees and an 18% GST levied on the interest portion. Additionally, opting for an EMI might cause buyers to miss out on instant discounts available for full upfront payments.
A credit card is advantageous during festive sales when the full bill amount is available and paid in full before the due date. This allows shoppers to benefit from instant discounts, cashback, and reward points without incurring heavy interest charges on remaining balances.
Paying the full amount via cash or UPI leaves no pending dues and avoids future billing worries. However, it has the drawback of missing out on special festive discounts and offers that are frequently restricted to select bank credit or debit cards.
