Many people fall into the vicious trap of credit card debt. It starts with one swipe, then another. Before you know it, your debt burden is just too much. Credit cards are great for emergencies. They are not so great for shopping sprees. Luckily, you have better finance options these days. For example, check out the EMI card from Bajaj Finserv. It has all the convenience of a credit card, but is not a credit card.

The EMI card is a smart and cost-effective option. It takes the form of a pre-approved loan. That means you can pay it back in equated monthly instalments (EMIs). Is it really better than a credit card? Certainly, both have their merits. But here are five reasons why the EMI card has an edge.

Five Reasons the EMI card Trumps your Credit Card

  • High Rate of Interest

What is the biggest disadvantage of credit cards? Their cost! Their rate of interest ranges from 24% to 47%. Regular use may leave you with a heavy debt burden. Suppose you do not pay on time or pay only the minimum amount, the interest just keeps accumulating.

In contrast, the EMI card is very affordable. It gives you a loan that is interest-free. You pay only a one-time fee of Rs.399 to own the card. There is also a small renewal fee of Rs 99. But this applies only if you do not use the card over a 12-month period.

  • Making Payments

Being financially smart is difficult when you have credit card debt. The amount of debt keeps increasing because of the high interest rate. That is why figuring out how to pay off this debt is tough.

There is no such problem with the EMI card. Like in a loan, repayment happens in EMIs. Your repayment schedule and instalment amount are fixed right at the start.

  • Period of Repayment

A credit card has no fixed repayment period. You can stretch out the debt repayment over several months or even years. That is why it becomes hard to get out of the debt trap.

But the EMI card encourages users to pay off their debt quickly. You can choose a repayment tenure ranging from three to 12 months. All you need to do is pay the EMIs on time.

  • Special Deals

Sure, credit cards send you exciting promotional offers. But suppose you buy into one of those offers. If you already have credit card debt, your debt burden goes up once again.

Meanwhile, the EMI card brings you pre-approved loan offers. These are from Bajaj Finserv’s retail partners. The advantage here is that you know your exact total dues at the outset.

  • No-cost EMIs

Finally, for all the merits of your credit card, here is where the EMI card wins. It gives you access to no-cost EMI schemes. When you buy something on a no-cost EMI, you pay no interest and no processing fees. You pay only the MRP of the product.

Are you looking to buy smartphone, camera, TV, fitness gadget, kitchen appliances or furniture? Bajaj Finserv’s EMI cardholders are in luck.

Flipkart’s ‘The Big Billion Days’, Snapdeal’s ‘Unbox Diwali Sale’, Amazon’s ‘Great Indian Festival’ could bring you some great deals, all on no-cost EMIs.

Should you Dump that Credit Card?

Keep the credit card for emergencies. For your regular shopping, the EMI card may be a better bet. It is the modern, more effective way to shop.

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