Credit Card EMI Myth.

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m-jeri

m-jeri

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Hi All...

In relation to applying for a HDFC CC, where i am a account holder also.

Me and my father were talking abt CC usage, :ashamed::no::(, He was talking abt some interest rates. He said that some CC's charges around 36% of so when we finish paying up the EMI. I was surprised coz i seen 0% stuff in ebay for HDFC, ICICI, Citi and even my current AXIS also have like lower rates.*touch wood*.

He wasnt talking abt late payment or cash withdrawal or loans but on EMI's. I think.

Can anyone tell more?

And people that used this 0% thing. is it actually 0%?

Any help appreciated.

m-J
 
I think he is talking about the rotation credit interests which can be as high as 30% per annum.
Zero % EMIs ARE zero % whenever written. I have never been charged otherwise unless written.
Credit cards are as good as or as bad as how you use them. Misuse them and they will be a PITA. Use them smartly, and you will find few things related to money which give you as much freedom and power.
 
m-jeri said:
^^

More details abt the rotation thing please.
Click to expand...
That should realll have been 'revolving' not 'rotation' :p

In simple words, your monthly statement comes with an amount to pay and a due date. If you pay the entire amount within the due date, well and good. No issues, and life is smooth. In case you don't pay the entire amount by the due date, you get charged interest @ 30% (varies from card to card) for the amount that was not paid. So say your bill is for 10K, you pay only 500. Then you will be charged interest on the 9.5K that you didn't pay up, from the date of transaction till the date you actually make the payment. In addition, all your purchases in the next billing cycle till the date you completely pay off your previous due amount, also get charged interest at the same rate.
 
Right, not in EMI. The way it stands today, most cards have an EMI conversion option of 3, 6, 9 and/or 12 months. Each of them has different rates, like I think 3%, 5%, 9% and 10% respectively. This changes bank to bank and card to card, but they are roughly these amounts. Some give you these without any processing fees, some charge you a small processing fees. These are again different from bank to bank. Then there are special cases, like this particular one where HDFC or ICICI ties up with merchants like eBay to provide special schemes which are true 0% - no extra processing fees or any other charges. Like I said, it is all in the T & C. It is always good to have a copy of the T & C, and go through it. If you are converting into an EMI on the phone, ask them all these charges clearly, and take an informed decision. In my experience with various credit cards, I have not had to face any issues of 'hidden' charges, since I explicitly ask them for all the charges. I would suggest you do the same. 'Hidden' charges are never really hidden. It is just that people are too eager to avail a 'freebie' without getting into details. Customers are equally to blame.
 
^^

True. I have converted 2 purchases or so for EMI in my CC. Always asked the EMI amnt, Service tax, Processing fees, Interest etc.

Although they themselves say these. i just double check.
 
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