Credit Card EMI Pre-Closure: Charges, Savings, and When You Should Close Early

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Summary Pre-closing a credit card EMI means paying the remaining loan amount before the tenure ends. This can save future interest, but the issuer usually adds a foreclosure charge and GST. For example, a 3% charge on ₹50,000 is ₹1,500, plus ₹270 GST so pre-closure makes sense only when the interest saved is higher than…

Credit Card Strategy for Salaried Professionals: Maximise Rewards While Avoiding Interest Charges

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Summary A credit card works best as a payment tool not extra income. Choose one or two cards that reward expenses you already make, such as groceries, fuel, dining or travel. Pay the full bill every month, keep credit utilisation below 30% and avoid spending simply to earn rewards. Credit cards can be valuable financial…

Paying School Fees via Credit Card: Why Banks Add Extra Charges and How to Reduce Costs

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Summary School fee payments made through a credit card can include a convenience or processing fee charged by the school or payment platform. They may also earn fewer or no rewards because many cards exclude education transactions. Use a card only when the fee is low, rewards are eligible and you can pay the entire…

Debt-to-Income Ratio vs Debt-to-Credit Ratio

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Summary These ratios measure different things. Debt-to-income compares your monthly loan and EMI payments with your income for example, ₹30,000 of repayments on an ₹80,000 income equals 37.5%. Debt-to-credit compares credit card balances with available limits. The first measures repayment capacity; the second measures credit usage. When evaluating a person’s creditworthiness, lenders rely on several…

Credit Card APR vs EMI Interest: Which Option Actually Costs You Less in India?

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Summary Credit card APR is the yearly cost of carrying an unpaid balance. For example, a 3.5% monthly rate works out to roughly 42% a year before other charges. EMI breaks a large purchase into fixed monthly payments, but processing fees, GST and longer tenures can increase the total cost. Paying the full bill by…