With rising petrol costs straining budgets, innovative credit cards provide much-needed savings on fuel spending. But should you opt for a UPI credit card for payment convenience and rewards or an EMI card for easy instalments? This article demystifies how these two cards work and compares parameters like interest rates, billing cycles, ease of use, and eligibility to help choose the optimal one for your financial habits.
Whether you prefer swiping cards or mobile payments, modest expenses or budgeting large bills in smaller amounts, there is a tailored solution to cushion your fuel spending.
Understanding UPI Credit Cards
UPI credit cards allow you to make payments using popular UPI apps and traditional card swipes. Their key highlights are:
- Ease of Payments: Make secure contactless payments via your UPI ID linked to your credit card—there is no need to swipe cards or remember PINs.
- Rewarding Experience: UPI transactions on these cards attract higher cashback or rewards, adding to savings on fuel and other everyday spending.
- Fuel Surcharge Waivers: Most UPI credit cards waive the 1% surcharge levied on fuel transactions via other card types, ensuring extra savings.
- Instant Activation: Quickly activate your card by linking it to BHIM or any other UPI app to start transacting immediately after getting it.
Understanding EMI Credit Cards
EMI credit cards allow the conversion of large fuel bills into affordable monthly instalments. These cards provide repayment flexibility, making them useful for high-fuel spenders. Some key aspects are:
- Convert to EMIs: Transactions above a threshold (usually ₹2,500) can be converted into 3, 6, or 9 EMIs at nominal interest rates.
- Flexible Tenures: Choose an EMI tenure that suits your repayment capacity from the 3, 6, or 9-month options available.
- Budget-Friendly Payments: Instead of paying a lump sum, EMIs allow smaller monthly payments, facilitating easier budgeting.
- Continued Rewards: Most EMI cards don’t stop rewards or cashback even when the transaction is converted to EMIs.
For instance, IDFC FIRST Bank provides attractive EMI conversion options, surcharge waivers, and cashback – bundling affordability with savings.
UPI Credit Cards vs EMI Credit Cards: A Comparative Analysis
Now that you understand both types, here is a comparison table for better understanding:
| Feature | UPI Credit Cards | EMI Credit Cards |
| Ease of Use | Payments via UPI apps are instant and simple | Requires conversion of transactions to EMIs |
| Rewards | Offers higher rewards on UPI transactions | Rewards may vary but are often consistent |
| Billing | Consolidated monthly billing | EMIs split billing into smaller amounts |
| Interest Costs | Low interest rates | No interest rate. A flat monthly EMI conversion fee is applicable |
| Eligibility | Minimal eligibility criteria | Stricter documentation and credit checks |
Which one to Choose?
Based on your average monthly fuel bills, financial habits, preference for convenience and rewards, and repayment capacity, you can determine whether a UPI or EMI credit card suits your petrol and diesel expenses better.
For modest fuel expenses, UPI credit cards like IDFC FIRST Bank variants make the most sense, while EMI cards are ideal for very high fuel spenders. If you’re ready to explore fuel-saving options, apply for petrol card online to enjoy tailored benefits for your needs.
Conclusion
UPI credit cards simplify payments, while EMI cards enable affordable repayment tenures.
Based on average monthly fuel bills and financial discipline, one can determine a suitable format that bundles convenience with rewards or flexibility with instalments to maximise savings on petrol expenses.