Credit cards are here to stay for the multiple benefits
associated with them. We already know that credit cards act as a
convenient payment mode for shopping, they are safer to carry as
compared to cash, they help build a credit rating which can be
used for getting fast approval on loans etc, and they are there
to help when you need credit. However, there are other benefits
too which one should be aware of as well. Let's check what these
other benefits are:
1. Travel Insurance
A lot of credit cards have travel insurance built into them as
an inherent feature. So if you are one of those who travel
frequently, this benefit could be a real boon. However, you
should always check if this travel insurance is enough for you.
Also check the terms and conditions associated with such
insurance. Loss of baggage is something which is almost
invariably covered with such insurance.
2. Discounts for travelers
A number of credit card companies have tie-ups or association
with various hotel chains, car rental agencies and airlines etc.
For frequent travelers, this is sometimes one of the main
criterion or deciding factor in choosing a credit card. These
discounts are sometimes pretty attractive and your credit card
may become a cash saver for you. Sometimes an airline might
offer a credit card too (a co-branded credit card for example)
where-in the benefits would be more travel oriented than other
cards. This could include things like earning additional miles
for payments made using their credit card or some kind of
preferential treatment etc.
3. Discount for shoppers
If you are one of those who likes to shop at some particular
shops (retail chains) which are your favorites, then you might
like to check if you have some additional benefits available on
your credit card. These could be there as a result of
partnership or affiliation links with the retail chain. Whenever
you pay for your purchases using your credit card, you either
get a discount or additional membership rewards points. Some of
the retail chains float their own co-branded credit cards too
and it could be good to consider them too.
4. Membership Rewards
Most of the credit card suppliers run membership rewards
programs too. Some of these are free to join whereas others
might have a small fee associated with them. The ones with fee
obviously offer more attractive rewards as compared to the free
ones. So once you subscribe to a membership program (either
explicitly or implicitly) you start earning reward points on
whatever payments you make using your credit card. As you
accumulate points, you become eligible for rewards which are
based on the number of membership reward points you hold on your
credit card. You can barter these points for attractive gifts.
If you are a heavy user of your credit card, you will accumulate
the points faster. Watches, bags, wine and a whole lot of good
stuff can be bought using these reward points. So keep track of
your reward points.
5. Cash back
Some credit card companies provide you with cash back option too
where-in you might get a certain percentage of money back, if
you spend more than a certain amount on your credit card. These
are really good offers. Nothing can match a thing like cash back.
So, read all the benefits being offered on your credit card. You
never know when one could become handy.
About the author:
Rudy Hadisentosa: CCN.com is a free online
credit cards review
and application website. We offer credit cards selection from
visa,master cards, discover, american express and many others.
We have quite some categories and hundreds of credit cards
selection to fit your need.
Apply for a credit card at CCN.com.
