537 In today’s world, credit has become an essential aspect of our lives. From buying a house or car to paying for an education, credit has made expensive purchases possible for many people. One such popular credit option is the EMI card. The EMI card is a digital financial product that works like a credit card. It enables individuals to buy goods or services and pay for them over time, in installments. However, unlike a credit card, an EMI card is preloaded with a specific amount, and the EMIs are deducted from this balance until the entire balance is paid off. EMI card limit decided by several factors. Understanding these factors is essential to make the most of your EMI card limit, especially during the festive season, when many retailers offer attractive no-cost EMI options. Table of Contents Factors That Decide Your EMI Card LimitCredit ScoreIncomeDuration of EmploymentExisting LoansAgeFestive Season and No-Cost EMIConclusion Factors That Decide Your EMI Card Limit Credit Score Your credit score is a significant determinant of your EMI card limit. The credit score is a numerical representation of your creditworthiness. It considers your credit history, payment behavior, and other financial factors. A higher credit score indicates that you are a responsible borrower who pays their debts on time. Hence, you are deemed to be a low-risk borrower, and lenders are more likely to offer you higher EMI card limits. Income Your income is another vital factor that significantly impacts your EMI card limit. The higher your income, the higher your EMI card limit will be. This is because lenders take into account your ability to pay off the borrowed money before setting your EMI card limit. If your income is significant, lenders may be more willing to offer you a higher EMI card limit. Duration of Employment The duration of your employment is another critical factor when determining your EMI card limit. If you have been employed with the same organization for several years, it shows that you have a stable job and a steady income. This makes you a reliable borrower, and lenders may be more willing to increase your EMI card limit. Existing Loans If you have existing loans, it can impact your EMI card limit. This is because lenders may consider your debt-to-income ratio when determining your credit capacity. If you have too many outstanding debts, lenders may offer you a lower EMI card limit. Age Your age is another key factor that can impact your EMI card limit. If you are young, lenders may be more cautious while offering you credit, as you may not have a stable job or income. As you get older, your income and job stability tend to improve, which makes you a more reliable borrower. Hence, the EMI card limit for older individuals may be higher compared to younger individuals. Festive Season and No-Cost EMI The festive season is a time when many retailers offer attractive deals and discounts to attract customers. One such popular offer during festive seasons is the no-cost EMI option. This option allows individuals to make purchases on EMIs without any interest charges or additional payments. However, it is important to note that no-cost EMI does not imply that the product or service is free. It simply means that the interest rate charged is zero, and the cost is divided into equal installments. During the festive season, customers tend to splurge on purchases, especially big-ticket items such as home appliances, electronics, and jewelry. This is where the EMI card can come in handy as it allows individuals to make the purchases on EMIs without having to pay the entire amount upfront. Moreover, during the festive season, lenders may offer higher EMI card limits to attract more customers. Conclusion EMI cards have become a popular credit option among individuals who want to make big-ticket purchases but do not want to pay the entire amount upfront. The EMI card limit is determined by several factors such as credit score, income, duration of employment, existing loans, and age. During the festive season, many retailers offer no cost EMI options, and lenders may offer higher EMI card limits to attract more customers. EMI cards can be a useful financial tool if used wisely. Before applying for an EMI card, it is essential to understand the terms and conditions of the card and the interest rates charged. Moreover, it is crucial to keep track of your EMIs and payments to avoid any late payment charges or defaults. When used responsibly, an EMI card can help you make expensive purchases without putting a strain on your finances. 0 comment 0 FacebookTwitterPinterestEmail Zohaib Khan previous post UDYOG AADHAAR REGISTRATION HELP GUIDE next post Why You Should Plan Your Trading Holiday Now? Related Posts The Impact of Home Remodeling on Property Value:... April 28, 2024 KMSPico and Kernel Reliability – Addressing Worries and... April 10, 2024 Pros and Cons of Revenue-Based Financing (RBF) April 9, 2024 The Ultimate Guide to Saving Money: A Comprehensive... April 3, 2024 Debt Consolidation Vs. Debt Management : Your Path... March 21, 2024 Reducing Monthly Expenses: A Guide to Saving Money March 19, 2024 How to Obtain Health Insurance Policy for Visiting... February 25, 2024 Eligibility Criteria for Personal Loan with an Rs.... February 12, 2024 Top benefits of offering virtual cards to your... February 12, 2024 4 Signs It’s Time to Hire a Professional... February 1, 2024