New Delhi: Plastic money i.e. credit card has now become the first choice of most people for payment. There are many reasons for this. Firstly, using a credit card is very convenient. You also get reward points on it. Also, during the festive season, attractive offers are available on purchases made using credit cards.

Credit card is a profitable deal for all three – buyer, shopping platform and bank. Buyers get a good deal. Sales of companies increase. At the same time, the transaction of the bank or financial institution issuing the credit card also increases. But, some things must be kept in mind while using a credit card.

How to use a credit card

The first priority while using a credit card should be to always pay the bill on time. This will save you from paying huge interest and late penalty. Also, if you want to buy a refrigerator or washing machine and are not in a position to pay the money in one go, then you should use no-cost EMI.

What is no-cost EMI

No-cost EMI allows you to pay on EMI without any interest. However, interest is usually included in the price offered by the brand. For example, you are buying a washing machine worth Rs 30,000 on no-cost EMI. In this case, the retailer may have already included the interest amount in the offer given to you. But, interest will still be applicable, which will lead to a slight increase in your monthly installments.

On which products no-cost EMI is available

Most finance companies offer no-cost EMI facility for expensive items like electronics, furniture and gadgets. In this, you get the facility to pay your payment in 6-9 months. With this, you can buy your favorite things in the festive season without going out of your budget. This no-cost EMI on credit card is an easy way for consumers to divide big expenses into smaller installments without interest. Partner merchants provide this option.

Use no-cost EMI responsibly

You should use no-cost EMI responsibly. You should avoid buying non-essential things in the greed of no-cost EMI. It should always be kept in mind that the money spent through credit card is also a loan, which you have to repay on time. Otherwise your credit score may get spoiled and in future you may face problems in taking loan from any financial institution.

How to manage your credit card

To avail the no-cost EMI facility, understand the terms and conditions carefully.

Also check for extra or hidden costs included in the product price.

Shopping should be done only if EMI fits in your monthly budget.

Your total EMIs should never exceed 40% of your in-hand income.

If your credit card dues increase, use your savings to pay them off.