Credit Cards: Can't pay the credit card bill!

Credit Card

There will be a fixed date to pay the credit card bill. Interest will not apply if paid within that time. Otherwise, you will have to pay 30 percent to 40 percent interest annually on the amount to be paid. There is also the possibility of canceling the interest-free period on the latest transactions. However, for those who cannot afford to pay a high bill, card issuers offer an EMI conversion policy. Convert the outstanding amount (unpaid bill) or some of it into monthly equal installments ... allowing you to make repayments with minimal interest and at a convenient time limit. This facility can be availed by those who have purchased a valuable item through a credit card and are unable to repay the amount immediately.

Cardholders wishing to convert credit card bills to EMI should consider the following:

1) Full bill or part thereof.

The entire credit card bill payable or part of it can be converted into EMI. This saves you from having to pay huge finance charges and credit card bills. A large amount of bill can be easily paid in the form of EMI in small installments rather than being paid all at once.

2) If the limit is exceeded.

This option allows users to convert the amount into EMIs when the card issuer makes a transaction in excess of the aforementioned limit. It is useful for converting certain card transactions, especially large amounts of expenses, into EMIs.

3) Credit card balance transfer.

Most credit card issuers offer the facility of converting credit card balance transfer into EMI. This option allows you to transfer an outstanding balance of a credit card to a card issued by another company and convert that amount into an EMI. This option is useful even if the current card issuer refuses to convert the credit card outstanding bill into an EMI, even if it charges a higher interest rate.


The financial charges that apply to a credit card bill payable are about 23 to 49 percent annually. In comparison, the interest rate applicable on a credit card EMI is lower. The interest rate varies based on the credit profile of the person taking the credit card. Holders of more than one credit card should plan to avoid having to convert to EMIs. If you need to change the interest rate charged on EMI conversion you should compare it with other cards. Transactions should be made accordingly. There is also the possibility of levying processing fees for EMI conversion.

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