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
Drag each meaning up or down until it sits beside the term it belongs to.
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.