How much will my credit limit reduce if opt for EMI purchase using my credit card?
As soon as you opt for EMI facility from your credit card purchase, your credit limit is reduced to the full principal outstanding amount. So with a credit card limit of Rs. 50,000 if you make a purchase of Rs. 45,000 using EMI option your credit limit is reduced to Rs. 5000 only. As and when you pay back your EMIs the credit limit gets free for you to use.
Based on the EMI tenure you opt for, your credit card’s limit gets reduced by the amount of purchase value. For instance, if the credit limit on your card is Rs. 45,000/- and you purchase a Smartphone worth Rs. 20,000/- and then get it converted to EMIs, then your available credit limit comes down to Rs. 25,000/-
Your credit limit will reduce by the amount of purchases that you made using the Credit Card. For example, let’s assume your credit limit is Rs. 30,000. If you swipe your Credit Card for Rs. 24,000, then, your credit limit will be Rs. 6,000. Let’s assume you will be paying an EMI of Rs. 1,000 for 24 months. Your credit limit will increase by Rs. 1,000 every month if you don’t make any further purchases using your Credit Card. If you are looking for a Credit Card, click here.