Credit card perks are under-utilized mostly because no one knows what they are!
Mohit, 32, had owned a credit card for 5 years now, but didn’t know about the rewards till he spoke to Rohan one day about the huge sum he had to pay for his one-way ticket to London. Rohan asked him why he didn’t use the air miles accumulated on his card. It was only after inquiring about air miles that Mohit came to know that the points he had collected on his card could be redeemed in the form of air miles which he could use to save on his ticket cost.
Mohit is not alone. Most people who own credit cards don’t know that besides functioning as a cashless financial tool, which lets you borrow money and build your credit score; credit cards also offer you several other benefits. Let us look at the ten most common benefits offered by credit cards which most people do not know about.
1) Cash withdrawal without finance charges
Some credit cards let you withdraw cash from an ATM in case you are in urgent need of funds. There are also special credit cards, such as the RBL credit card that gives you an interest-free window of up to 50-days to repay the cash withdrawal amount in full without levying any charges.
2) Discounts and surcharge waivers on fuel purchases
Paying using your fuel credit card, such as the IndianOil Axis Bank credit card, BPCL SBI Card, or Citibank IndianOIl credit card, is a great way to save on your fuel bills. You can enjoy surcharge waivers, discounts, and cashback deals when you use the card at partner fuel outlets.
3) Free or discounted movie tickets
If you enjoy watching movies at a theatre, you can use the deals available on your credit card to get discounts on movie tickets. Some credit cards even offer complimentary movie tickets that can be availed every month.
4) Free access to the airport lounge
One of the most sought-after benefits of using your credit card for travel is the complimentary access to some of the best lounges at domestic and international airports. Here you can enjoy free Wi-Fi, comfortable seating and sumptuous food. The Citibank PremierMiles credit card, SBI Card Elite, etc., are some of the best credit cards for airport lounge access.
5) Insurance cover-
Apart from lounge access, credit cards often offer complimentary insurance cover for loss of baggage and tickets. Some special credit cards also offer extended cover in case the connecting flight is missed.
6) Personal loan at your fingertip-
Your credit card can be used to get a personal loan, quickly and easily, in case of an emergency. You can avail this facility by converting the cash limit of your credit card into a loan. Some credit card issuers also offer a longer interest-free period on the personal loan, which makes it easy to pay back in EMIs.
7) Insurance cover against purchases-
Purchase protection is a feature that can be found with some credit cards, whereby you can claim compensation in case the goods purchased are stolen or lost. The insurance amount may, however, vary from one issuer to another, so it’s best to enquire about the same before applying.
8) Insurance cover for accidents
If your card has an insurance cover for accidents, you can use it to address emergency hospitalisation and treatment charges. Some cards even offer substantial financing in case of accidental death while travelling.
9) EMI facility-
Credit cards make buying big-ticket items easy. The payment process is also affordable as you can convert purchases above a certain value into EMIs. The smaller instalments can then be paid over a longer duration.
10) Indemnity cover for doctors-
This is a unique benefit offered by some special credit cards, such as the RBL Bank Doctor’s SuperCard. Designed for medical professionals, indemnity insurance gives you a decent sum to cover any expenses that can come up due to negligence while practising.
Credit cards, with their numerous benefits, surely make life easier. If you are still looking to apply for a credit card, you can refer to a credit card app such as the Finserv MARKETS app that offers you a range of credit cards from some of the top credit-issuing banks in the country. The cards are versatile and provide you with easy access to funds at affordable interest rates and uncomplicated eligibility terms. You can also enjoy strong security features and avail impressive deals and offers on them to make transactions effortless and worry-free.
