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.