How to Buy an AC on EMI Using a Credit Card

These days, an air-conditioner is no longer just a summer appliance. With rising temperatures every year, it makes sense to invest in an AC. But some of these ACs come with a hefty price tag, and it may not be easy to pay the full amount upfront. Thankfully, you won’t be sweating much longer. EMI (Equated Monthly Installment) purchases using your trusted credit card can help you beat the heat without burning a hole in your wallet. With EMI, you can break down the cost of your AC into manageable monthly payments, allowing you to enjoy cool comfort now and pay it off gradually. But before diving headfirst into this refreshing solution, let’s unpack the intricacies of buying an AC on EMI with your credit card.

Benefits of Buying AC on EMI – A Breakdown

The scorching sun might leave your wallet feeling just as parched as your throat. So, let’s explore how opting for AC on EMI with your credit card can help make this summer breezy:

1. Budget-Friendly

Buying an AC on EMI takes the burden off your shoulders and allows you to budget more effectively. For instance, One Credit Card even offers no-cost EMI depending on the brand partnership or the merchant may even offer a discount in the form of a deferred cashback that will be credited to your account in 30 to 90 days.

2. Improved Cash Flow for Emergencies

Sometimes unexpected expenses can leave you scrambling. When you buy AC using a credit card with EMI, you basically free up your cash flow for other needs or emergencies. This guarantees you’re prepared for unforeseen circumstances while still enjoying the comfort of a cool environment.

3. Owning the Dream, One Installment at a Time

Oftentimes your budget reigns in your desire for the dream product. But if you buy an AC using a credit card on EMI, you can bridge that gap. This option allows you to invest in an AC with better features, such as one with a higher efficiency, variable compressors, dehumidification processes, etc.

ALSO READ: Do EMIs and BNPL Affect Your Credit Score?

Things to Consider Before You Buy an AC

1. Creditworthiness

Think of your credit score as the key that unlocks the door to EMI purchases. Before you go and start looking for your next purchase, check your credit report. A healthy score increases your chances of EMI approval and ensures a smoother transaction.

2. Interest Rates: The Hidden Cost

Remember, convenience often comes with a price tag. EMI purchases typically incur interest charges. It’s paramount to research and compare interest rates offered by different banks on AC on EMI plans. Opting for a lower interest rate can significantly reduce the overall cost of your AC.

3. Processing Fees

Don’t be caught off guard by unexpected credit card fees. Some banks may charge processing fees for EMI transactions. Factor these into your budget before buying an AC on EMI to avoid financial surprises.

4. Picking the Perfect Pace

The EMI tenure significantly impacts your overall financial commitment. Longer tenures translate to lower monthly payments, but they also mean you’ll end up paying more interest in the long run. Choose a tenure that aligns with your financial situation and ensures you can comfortably manage the repayments.

ALSO READ: How to Convert Your Large Credit Card Expenses into EMIs? Easy Steps?

Points to Remember Before You Buy an AC

With the groundwork laid, it’s time to go for the purchase! Here’s are some key points to remember before buying an AC on EMI:

1. Research

Before setting your sights on a specific AC, consider factors like capacity, energy efficiency rating, and brand reputation to find the perfect fit for your needs and budget. Compare deals from different retailers scrutinising interest rates, processing fees, and tenures. A little research can go a long way.

2. Read the Fine Print

EMI agreements, like any legal document, deserve your undivided attention. Before finalising your purchase, meticulously read the terms and conditions associated with the EMI plan. Be aware of any hidden charges or prepayment penalties that might lurk beneath the surface.

3. Make Timely Repayments

Once you’ve secured your dream AC, remember that timely repayments are key. Setting up automatic debits from your bank account can help you avoid late fees and potential damage to your credit score. After all, maintaining a healthy credit score is crucial for future borrowings.

ALSO READ: What is OneCard Credit Card EMI and How Does It Work?

Conclusion

All in all, don’t let the scorching summer hold you hostage to discomfort or financial strain. By leveraging AC on EMI with your credit card, you can conquer the heat and spread the cost of a new AC over manageable installments. However, remember, responsible credit usage is key. Make timely payments, and you’ll be basking in cool contentment all year long, without breaking the bank.

FAQs

1. How can I buy an AC on EMI using my credit card?

Choose a credit card with EMI options, select the desired AC, and opt for EMI at checkout for manageable monthly payments.

2. What are the benefits of buying an AC on EMI with a credit card?

EMI spreads out payments, improves cash flow, and lets you afford a better AC model without paying the full price upfront.

3. Are there interest charges for buying an AC on EMI?

Yes, most EMI options come with interest charges, though some credit cards may offer no-cost EMI or deferred cashback.

4. How does the EMI tenure impact my total cost?

Longer tenures reduce monthly payments but increase total interest. Choose a tenure that suits your budget without excessive interest.