Making big purchases can sometimes be born out of impulse or a desire to pamper your loved ones during the festive season. No matter the cause, it is essential to plan your finances in a way that your necessities do not get affected.

When planning a significant expense, missing an EMI payment is not an option, as it can severely impact your credit score. To avoid this, take a proactive approach by using a credit card EMI calculator. First, plan your finances with the credit card EMI calculator and ensure that you do not spend more than a certain threshold of your credit utilisation ratio.

Planning Your Finances with a Credit Card EMI Calculator

Using a credit card EMI calculator will help you plan your instalments better and also help you divide your funds according to your priorities. You can use this calculator by entering the principal amount, interest rate, and the tenure of your debt. Once you input this information, you will receive the monthly instalment that you need to pay.

After getting this fixed amount, you can set aside the sum to pay off your credit card debt. Then, you can organise the rest of your budget to cover other essential expenses and savings. This approach ensures that your finances remain balanced and prevents overspending.

Advantages of the EMI Calculator for Your Credit Card

An EMI calculator has many benefits, and some of the primary ones include the following:

• The calculator is user-friendly and free, which makes decision-making and financial planning accessible to everyone at their fingertips.
• The credit card EMI calculator simplifies the process of estimating your instalments without needing manual calculations, which can be very time-consuming.
• Such a calculator provides instant results.
• If you foresee extra funds in the future, the calculator helps you evaluate the impact of early repayments.
• The EMI calculator helps with optimising your credit card loans efficiently.
• The tool also reduces the risk of errors and lets you perform your assessments with ease.
• It is also available 24/7, so you can make your calculations whenever needed.
• You also do not need to visit a bank or have conversations with anybody to get a clear estimation of your payable amount.
• By knowing your EMI beforehand, you can assess whether the purchase aligns with your current financial situation.
• It helps maintain a healthy credit utilisation ratio as keeping your spending within a safe threshold ensures your credit score stays intact.

Factors to Consider Before Making a Big Purchase

The decision to make a big purchase should not be made hastily. Instead, you should consider some of the following factors before buying something of a considerable amount.

Assess Your Financial Health

First and foremost, start with assessing your financial health. Is the object a want or a need? Can you afford to buy it without jeopardising your other priorities? Consider how it will affect your goals that may be higher on your priority scale. If you are fine with every aspect, then you can go ahead with your purchase.

Review Your Budget

Having a budget for any purchase is incredibly crucial. Even if you are buying it using your credit card, you should not spend more than your budget. Excessive spending can inadvertently affect your ability to save. This can have long-term impacts on your other plans, so ensure that you create a budget before things get out of hand.

Summing Up

Having a credit card EMI calculator is extremely beneficial since you can use it at any time you want. Even if you are on the move, you can open the tool and use it by entering basic information. However, you must ensure that you have the right information when making your calculation since that will produce an accurate result. This way, you can make any big purchases you want without any concern. Knowing exactly how much to pay each month helps you manage your debt effectively and stay on track toward reducing it.

FAQs on credit card EMI calculator

1. How does the credit card EMI calculator work?

The EMI calculator works with certain information like your debt amount, tenure, and interest rate. Click on “Calculate” once you have filled in the information. Upon doing this, you will receive detailed information on the EMI that you will pay every month.

1. Can the interest rates be adjusted after using the calculator?

Yes, you can adjust its information for calculation as many times as you want. And the calculator will adjust its assessments every time and produce a fresh result.

1. Will I need to pay to use the credit card EMI calculator?

No, the EMI calculator is entirely free to use, and you can make your estimations as many times as you need.

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