6 Benefits of Credit Card You Should be Aware of!
by MyMoney Mantra FinTech (Financial Technology)Credit Cards have been in trend for past many years, and their popularity, as well as usage, has
only increased with time. Earlier when there were only a few options available
to customers, the usage of Credit Cards was limited to a very few avenues. But
with the rapid progress of the finance sector in India, many Credit Card Offers are being provided by
banks and card issuers.
There are cards available that offer rewards and points on
specific usage such as the purchase of fuel-air tickets, restaurants, and so on. Most of these Credit Card issuers
offer you the option to Apply for a Credit
Card Online, wherein you just need to fill the application form on their
website, and they will get back to you to
complete all the formalities.
Credit Cards work on the principle
of revolving credit, i.e., they come with
a pre-approved limit, and you are free to
use it as per your preference. Every time you make a purchase or use your card,
the limit is reduced, and every time you
pay the bill, the limit is increased accordingly. Many Credit Cards come with
an interest-free period, and if you pay the entire amount due within
that period, you need to pay any interest on it.
If the amount is outstanding even after that, the interest will be charged from the first day
itself as per the prevailing rates. It is very
essential that you keep a close eye on your Credit Card bills and make
repayments correctly otherwise in no time
you would be under the burden of a debt that is extremely tough to get rid of.
Secret Benefits of Credit Cards
It's
not as if everything is only negative about Credit Cards; they also offer significant benefits that cannot
only help you save a lot of money but also enjoy certain privileges without
incurring any cost. If you want to know about some of the mostly unknown benefits of Credit Cards, then
read further:
1. Protection Against Frauds
All Credit Card purchases are protected against frauds up to a certain limit. In case you lose your card,
you must inform your issuer regarding the same and ask them to block the card.
If in the meanwhile there is any transaction against the said card, you will
not have to pay for that.
Many times, if your card issuer suspects
any fraudulent activity on your card, they will hold the transaction and
confirm with you if indeed you have
initiated any such transaction. In case
you have purchased something online, and
now the seller is giving your problems regarding the refund, you can ask your
card issuer to help you with the same.
2. Travel Insurance
Most of the new Credit Cards
come with complimentary travel insurance. This eliminates the need for
buying a separate travel insurance policy when you are away on a trip. Travel insurance
also covers your expenses, if your flight is delayed due to reasons which are
beyond your control. But you must be aware that the travel insurance policies
are capped at a certain amount, i.e., if
your loss is more than the amount of the policy,
then you will only be reimbursed up to the coverage offered by the policy.
3. Lounge Access
If you are a frequent traveler
and need to take flights regularly for your business-related travel or holiday
travel, then some cards also offer you free lounge access. Herein you can relax
and entertain yourself in case your flight is delayed due to any reason
whatsoever without paying anything additional.
4. Roadside Assistance
Many cards come with in-built roadside assistance also, i.e., if your car breaks down in the middle of
the road, you can conveniently call on the helpline number, and you will be offered assistance without any additional charges.
These services include flat tire change,
fuel at company rate, mechanical repair as well as towing to the nearest
garage. This also eliminates the need for
getting a separate roadside assistance
service.
5. Extended Warranty
When you purchase expensive electronic items like laptops, TV, and
smartphones using specific company’s cards, you are offered extended warranty
free of cost. This service is complimentary and is available on a selected few
applicable products only. This warranty is only
an extension of the company warranty and
won’t cover any additional aspects other than the original policy.
6. No Forex Charges
If you travel to foreign countries on a regular basis, then you
must get a Forex Credit Card. There are no foreign transaction charges
applicable on these credit cards, and it
saves you a lot of money in turn. These cards also offer you protection against
any losses suffered while you are in another country.
You must read the terms and conditions offered by the Credit Card
issuer when you apply for a Credit Card,
in order to maximize your benefits from your credit cards.
Also Read: Leverage These Credit Cards if You Are a Frequent Flyer
To apply online for Credit Cards, Secured Loans and Unsecured
Loans, visit www.mymoneymantra.com, the leading online lending
marketplace that offers financial products from 60+ Banks and NBFCs. We have
served 2 million+ happy customers since 1989.
Talk
to our Loan Specialists toll-free at 1800 103 4004 to know more about
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Created on Jun 14th 2018 08:07. Viewed 748 times.