Purchasing Appliances on Credit Card: Benefits and Considerations

Increased urbanisation and growing disposable income have considerably increased the demand for accessible and convenient home appliances in India. The rising trend for home improvement and personalization has also made a diverse range of products available at various price points. There are also a lot many lucrative options for purchasing appliances, one of them being a credit card. Here’s why a reliable credit card is your best bet and the considerations to keep in mind.

Advantages of Buying Appliances on a Credit Card

1. Flexible EMI Options

Most credit card providers and banks offer flexible EMI payment options tailored to your financial preferences and budget. The best credit cards offer competitive payment plans with flexible repayment tenures. Furthermore, attractive interest rates allow for greater convenience and affordability, allowing you to purchase your dream appliances without straining your budget.

2. Offers and Discounts

Some of the most exciting advantages of buying appliances on credit cards are the exclusive promotional offers and discounts available on some of the best brands in the market throughout the year. This gives you several value-added benefits and leads to higher savings.

3. Valuable Reward Points

Every purchase made with a credit card earns you reward points. Added up, they can help you save significant costs on your appliances. Customers can also redeem points for gifts, vouchers, and discounts across numerous categories, leading to a fulfilling and advantageous shopping experience. These reward points often have a lifetime validity.

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4. Cashbacks

While cashback usually has a validity period, it can be a great way to save on future purchases. It can be applied to a wide range of categories, from appliances and car fuel to e-commerce. For instance, several credit cards offer up to 10% cashback on groceries bought from supermarkets and 5% for online purchases. Users can also have their fuel surcharge waived up to a fixed monthly rate at any gas station nationwide.

5. Extended Warranty

Many banks extend the manufacturer’s warranty, sometimes even doubling the duration and providing an additional coverage period. This is especially useful for larger appliances that often malfunction after the initial expired warranty period.

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Factors to Keep in Mind

1. Processing Fees and Interest Rates

While most established banks offer low-interest and even zero EMIs, others may impose a higher charge, increasing the final cost. Therefore, knowing the applicable interest rates and processing fees is crucial before committing to a credit card EMI plan.

2. Hidden Costs and Charges

Late payment fees or processing fees – the additional charges on a credit card purchase can be many, leading to financial strain and unexpected expenditure. Be sure to thoroughly inspect the terms and conditions of the EMI scheme offered to you to avoid stretching your budget thin later.

3. Repayment Tenure

It’s important to consider the repayment tenure carefully while buying home appliances on a credit card. While longer tenures offer lower monthly instalments, consumers will likely incur a higher cost over time. The tenure should align with your budget constraints and financial situation to offer maximum advantage.

4. Product Warranty and Guarantee

Examining the warranty periods and associated guarantees helps ensure your appliance is covered against manufacturing defects and malfunctioning within the EMI repayment tenure. This helps tackle unforeseen emergencies and ensures a smoother after-sales experience as well.

Credit cards are among the most preferred options for financing home appliances. They offer a flexible and adaptable payment solution that aligns with your monetary preferences and limits, allowing you to elevate your lifestyle without straining your budget. By understanding the nuances of credit card purchases, like credit score, EMI, and reward points, you can make an informed choice that helps you fulfil your aspirations while safeguarding financial security. So go on and go shopping, the possibilities are endless!