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 our products and offers.