If you are a shopaholic person and love to buy things randomly without having enough money in your pockets, then there is good news for you people, you can buy goodies without paying in cash. You can subsequently use the EMI on credit card option to pay over a period. Now you must be thinking, how does EMI work on credit cards?

But make it sure, you will not run out of money because being a shopaholic you might use your credit card for upcoming months or festivities, and such practice can put you in poor condition and you will be enticed to empty your wallet. Before using these plastic cards, you must know it's working process:

You can pay by two different methods using your credit cards. In the first one, you can pay the entire principal amount without paying any interest and the second one is to pay a small amount at the beginning and carry the rest of principal to the future in monthly installment process by paying interest.

If the credit card company is allowing you to pay using a credit card in installments without paying the interest then it’s quite shocking, you must know the process before using it, here have a look that how does it work:

The payments & interests you made and services you use through credit cards are the sources of earning of the credit card companies. If you pay your credit card bills before the due date then for sure, you are not the one who contributes to their profit.

EMI by using credit cards is that bank pays the whole amount on your behalf to the merchant and provides you 40 to 50 days of time to pay the amount back to the bank. In the other option, in EMI's credit card clears your debt against the merchant for once and then you can repay that amount to the bank in small EMI's or the form of monthly installments.

The zero interest rate EMI option, if the companies are enabling you to buy a product with zero EMI then the entire amount will be converted into monthly EMI's and the credit card company will not receive any profit, and you don't need to pay any interest regarding the amount.

These are the simple and easy ways to use the EMI on credit cards, but such facilities are not available all the time.