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The hype of NO COST EMI is really being rampant around India and I have to say that I am indeed a Victim of this as well. I say I am a Victim as there were some things that I did not know about No Cost EMI. When we go for a No Cost EMI option whether it is for 3 months or 6 months or even 12 months we go with the mindset that we won't get charged anything and we will simply pay Monthly EMIs without any Interest, but there is something called a Processing Fees which are never mentioned. Fortunately for my Credit Card, it does not charge any Processing Fees but I know there are a lot of other Credit Cards that charge some decent Processing Fees. So basically you are getting slightly Duped by the false narrative of NO COST EMI as there is indeed a cost involved.


The next point is something that I did not know and now that I know about this I am not going to buy anything at NO COST EMI if I have the Cash in Hand. Using NO COST EMI hurts your Credit Score a lot. You see there is a metric called Credit Utilization which is a huge factor in determining your Credit Score every month and it is suggested to keep your Credit Utilization to less than 30 percent but if you opt for  NO COST EMI then whatever the amount of the item you are purchasing gets locked by the Credit Card which means you are already utilizing your Credit Limit over 30 % which means every month it will indeed hurt your Credit Score to the date you pay your Entire EMI.




![image.png](https://files.peakd.com/file/peakd-hive/arunava/23ynMzJiApWJV3693dnFG4cW27j31i4xXLxK3oc6DkDg6Kpzdeb1yV55Rk8jtgFqNEJLk.png)


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