Lesson 3 of 3 · 5 min
EMIs, rewards, and when a card is worth it
No-cost EMIs hide their price in the sticker, rewards lose to interest about three to one, and the same card can build your record or bleed it.
Myth
“'No-cost EMI' means nobody is charging you anything.”
Mostly false
RBI told banks as far back as 2013 that zero-percent EMI schemes camouflage their price. The cost hides as a conversion fee, as GST on the interest portion, or as the upfront discount you silently gave up by choosing instalments. Sometimes the hidden cost is small. It is never nothing — compare the EMI total against the pay-now price before deciding.
Your turn
A card gives 1% cashback. You spend ₹10,000, then let that ₹10,000 revolve for one month at 3.5%. How many rupees MORE is the month's interest than the cashback?
Is the card helping here?
Is the full statement amount being paid every month, on time?
Sort it
1 / 5
Swipe: does this habit build credit, or bleed money?
Paying the statement in full by the due date, every single month
Match them up
Five card words worth owning
Pick a term, then pick what it actually means.
Pick a term on the left.
Spot the scam · SMS
Your points expire TODAY
MyBank Alert: Your 9,750 reward points worth Rs.2,437 expire TODAY. Redeem immediately at mybank-rewards.win or lose them permanently. Enter card number, CVV and OTP to claim.
Check yourself
1 / 3
Kabir asks
'No-cost EMI' — so where is the cost?
Done reading?
Saved in this browser — and finishes the course.