Look for these fringe benefits when getting your next credit card!

For many of us credit cards are the saviours as they come to help when we run out of the money. However, credit cards are more than just a means of making payments. They come with a number of hidden benefits which most of us fail to redeem. Here are some of the fringe benefits that you must check out when you are getting your next credit card…

  • Cash back offers:You can save a lot of money if you make purchases with credit card as most banks have cash back offers. Particularly, when you buy groceries or pay utility bills or shop online with your credit card, you can avail the cash back benefits.
  • Reward points:Most of the credit card companies give you some reward points when you use the credit card for buying certain products and services. You can redeem these points against gifts that the company offers.
  • Easy instalments on big purchases: When you make big purchases like television etc., instead of paying the whole money in one go, you can opt for affordable monthly instalments via your credit card. However, do remember that banks will charge some interest on the EMIs, but paying through EMI is definitely much cheaper than taking a personal loan.
  • Purchase protection benefits: You would be glad to know that your credit card offers additional protection in the form of insurance. For example, if you buy any tangible product with the credit card and if it is lost, stolen or damaged in fire during the 90-day period or as specifically mentioned, you can use the credit card statement for making the claim.
  • Personal accident insurance: Many credit card companies give personal accident insurance. This money can be claimed if the user gets injured or dies in an accident.
  • Credit insurance: In case of accidental death of the credit card user, as per the credit insurance benefits, certain amount is waived off from the outstanding amount. However, the credit insurance amount varies for different credit cards.
  • Credit card travel insurance:
    • Insurance for lost baggage: One of the biggest fears of air travel is loss of baggage. To help you keep all the worries at bay, some credit card companies give lost baggage insurance. This insurance may cover the price of the lost baggage or repairing cost of damaged items. So, if unfortunately your baggage gets lost in transit, then you can claim this insurance money from the credit card company. All you have to do is book your air ticket with the credit card.
    • Insurance for cancellation of trip: If due to some unforeseen reasons, your trip is cancelled, then also you can make an insurance claim against the loss. Of course, this is possible only when you purchase the travel tickets by your credit card. Also, there are a number of terms and conditions that need to be fulfilled to avail this credit card benefit and the reimbursement amount may differ from company to company.

Thus, your credit card can do much more than what you can think. But there might be certain terms and conditions which the credit card company may impose. So, read all the documents well and make a wise move. Definitely, go ahead and swipe your credit card to get a selected assortment of surprising fringe benefits.

8 Simple reasons why your home loan might get rejected

If you thought finding a home is tough then getting your home loan approved could be tad bit tougher. You will find that a slight carelessness from your end can put your application in the pile of rejected forms. Here are some reasons which can mar your chances of getting a home loan approval…

  1. Poor credit history: Banks will verify your credit history before they sanction your home loan request. If you have been a defaulter in paying your credit card bills, then the bank will hesitate to approve your loan application. So, make sure that you pay your bills in time.

 

  1. More loans as against less income: If you have a number of loans, then it is obvious that your disposable income will be reduced. This can directly have an impact on your loan repayment capacity. Banks can take into account this fact and your loan application may get rejected.

 

  1. Previous rejection of loan application: If your loan application was rejected earlier by a particular bank, then chances are that your loan application will get rejected by other banks as well. This is because the earlier rejection points out that you could not comply with the requirements due to which the bank rejected your application.

 

  1. Frequent changing of job: If you do not have a stable job or a good salary, then too, the chances of your home loan rejection are high. If you are into the habit of switching jobs regularly, in that case as well, you might have to face issues regarding home loan approval.

 

  1. Guarantor problems: If you are a guarantor for a relative or an acquaintance who is repaying a loan, then your chances of getting a loan can further become less. This is because when you become a guarantor, you take the responsibility of the loan that your friend or relative has taken. So, if you are a guarantor for a defaulter then your chances of getting a home loan becomes bleak.

 

  1. No verification: For your loan to get approved, you have to undergo the verification procedure. So, make sure that you give a contact number where you are available all the time. This is because if you miss out on the verification a couple of times, then your bank may not approve your home loan.

 

  1. Inconsistency in signature: Signature mismatch can be another common reason for loan rejection. You will have to sign a number of forms and documents. Make sure that you have the same signature on all the documents. If required, practice your signature a couple of times before you sign the various documents.

 

  1. Retirement age also matters: Last but not the least, people who are approaching their retirement age can have problems getting a home loan. Obviously, the bank will feel that your repayment capacity has been reduced and you might not be able to repay the loan. So, planning for a home loan in your heydays is advisable.

In a nutshell

When it comes to home loan approvals, a number of minute things can hamper your chances of success. While a good CIBIL score is the primary requirement, there are a number of other criteria that needs to be fulfilled by the applicant. So, make sure that you are bang on target in all these areas, if you do not wish to face home loan rejections.