Last Updated on May 9, 2022 by azamqasim
Mobile phones have become expensive these days. That is why many buyers are confused about whether they should shell out the cost from their savings or use their credit card to buy it on EMIs. Well, both options have pros and cons, which one must be aware of before making a final decision. Besides these, one more option is to buy a mobile phone on EMIs with a debit card. The buyer agrees to purchase a phone on mobile EMI without using a credit card with this option.
Here, we will talk about all these options and help buyers finalise their deal.
Buying a Mobile Phone on EMIs Using a Credit Card
A credit card is like a short-term loan that the buyer may borrow to purchase the phone and repay it in EMIs. However, credit card companies charge a hefty interest rate on the borrowed amount, which can significantly increase the mobile phone’s cost. Besides that, not many people have a credit card due to ineligibility, distrust, or low credit score. Such people do not have the option to buy a mobile phone on EMIs using a credit card.
Buying a Mobile Phone in Full Payment
The buyer can purchase a mobile phone in full payment using their savings. Such people do not need to pay any interest charges. Apart from that, they do not need to keep an eye on their mobile phone EMI each month and pay it before the due date. However, one drawback of buying a phone in full payment is that the buyer needs to shell out a significant sum in one go. This option is suitable for those who want to purchase a low-end phone worth Rs. 10-20,000. However, those looking for a more expensive phone may find this option difficult to manage.
Buying a Mobile Phone on EMIs Using a Debit Card
This option saves the buyer from the cons of both the methods mentioned above. With this method, they neither need to spend a considerable amount from their savings nor have to pay EMIs along with hefty interest charges. They can use their debit card to buy a phone on EMIs and get the EMIs deducted from their bank account at regular intervals. Many companies offer no-cost EMIs with this option, which means the buyer has to pay only the phone’s actual price in instalments without additional charges.
The buyer does not need to remember to pay the EMIs each month. They may activate the e-mandate to automatically get the mobile EMI deducted from their bank account before the due date. The buyer is free to select their repayment tenure according to the EMI amount they can afford each month. Some companies have a ‘refer & earn’ scheme, which the buyers may use to gain more benefits.
With this information, the buyer can choose whether to buy a mobile phone in full payment, use their credit card to buy it on EMIs, or purchase it on EMIs using their debit card. After seeing the pros and cons of all options, the final choice depends on the buyer’s discretion and affordability.
Read more: How Credit Card Processing Works?