It’s tempting to switch to the latest smartphone even if you’re still paying EMIs on your current device. But can you actually upgrade your smartphone on mid-cycle without affecting your finances or credit profile? The answer is yes—with some important conditions. Understanding the rules and options can help you decide whether it’s worth it or better to wait until your EMIs finish.
What Happens If You Upgrade Mid-EMI?
When you buy a smartphone on emi, you enter a legal agreement with a lender or retailer to pay fixed monthly installments for a set period. If you want to upgrade mid-cycle, you still owe the unpaid EMIs on your existing phone. Many buyers assume they can just return their old device, but that’s rarely possible unless you’ve purchased an upgrade plan offering early trade-ins. Otherwise, you’ll need to pay the remaining EMIs or foreclose the loan.
Using Early Upgrade Plans
Some brands and retailers offer early upgrade schemes specifically designed for customers who want the latest smartphone on emi before finishing their current payments. These plans allow you to exchange your old device after a minimum number of EMIs and start a new EMI cycle for the upgraded phone. Apple, Samsung, and major telecom operators often run such programs, but they usually include eligibility requirements like a clean payment history.
Foreclosure of Existing EMIs
If you don’t have an upgrade plan, the most straightforward way to switch to a new smartphone on emi is to foreclose your existing loan by paying the outstanding principal and any applicable foreclosure charges. While foreclosure lets you own the old device outright, it requires a lump-sum payment, which may not be practical for everyone.
Impact on Your Credit Score
Upgrading your smartphone on emi mid-cycle affects your credit profile differently depending on how you handle it. Paying off the existing EMI plan properly and closing the loan improves your credit score. But missing EMIs or defaulting to buy a new phone can hurt your score, making it harder to get approvals for future EMIs on electronics like a fridge on emi or high-value gadgets.
Is It Financially Wise to Upgrade Early?
Upgrading your smartphone on emi before completing the cycle can add financial pressure since you’ll have to juggle old and new payments or pay off the current loan first. Unless your old phone is malfunctioning or the new model offers must-have features, it’s usually smarter to complete your existing EMI tenure. Waiting helps you avoid extra costs, maintain a healthy credit profile, and stay within your budget for future purchases—like buying a fridge on emi or other appliances.
Alternatives to Mid-EMI Upgrades
If you can’t wait but want to avoid foreclosure costs, consider selling your old phone privately and using the proceeds to pay off the remaining EMIs. Some online marketplaces or trade-in services offer decent resale value if your device is in good condition. This way, you can close your old EMI plan responsibly before starting a new smartphone on emi plan.
Conclusion
Upgrading your smartphone on emi mid-cycle is possible, but it comes with important considerations. Always check your lender’s terms, understand foreclosure costs, and consider the impact on your credit score. Unless you have an early upgrade plan or can afford to pay off your existing EMIs, it’s usually best to wait until you finish your current payments. By planning carefully, you can upgrade smartly and keep your finances healthy for future big purchases like a fridge on emi or other electronics without unnecessary stress.