Credit cards can be a boon or a bane according to the usage habits of a person. Some cautionary mindsets advise you to refrain from using credit cards; however, a credit card can be handy, notably towards the end of the month when your salary account plummets.
Most people fail to realise that credit cards are not merely a source of emergency cash but also offer several features and benefits that can be rewarding and help cover the extra expenditures.
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Seven Unique Features of a Credit Card
Besides offering several unique benefits, credit cards can also help you save money by using credit card machine for small business. Here are seven uncommon features of a credit card that might sound unfamiliar to you but can benefit you in the long run.
Enjoy Exclusive Offers and Discounts
For the EMI-dependent generation, credit cards have become more of a necessity than a luxury. While all credit cards offer EMI facilities, some also provide special discounts, rewards, as-well-as exclusive members-only access.
For instance, with specific credit cards, customers can also receive complimentary memberships and subscriptions for certain brands.
With card-specific offers, as well as multiple cashback schemes, purchasing commodities with a credit card can help you save money.
Besides, perks such as enhanced Air Miles and quality rewards make flashing a credit card a wise move and more reasonable than transacting with a Debit Card.
Access To Customised Benefits
Certain credit card providers in the market provide you with multiple card options so you can pick one that complies with your lifestyle. For instance, if you travel by air a lot, book hotels regularly, or shop online often, you can opt for a specific credit card from a lending firm that provides deals in these sectors.
Certain credit cards also provide airport lounge access for domestic as-well-as international flights besides redeeming your Reward Points for free flights or hotel bookings.
When you pick a card that recognises and complies with your lifestyle, you receive better benefits and even superior opportunities to save money.
Consider installing a credit line app that helps you with an extra income of up to INR 5,00,000 and provides flexible EMI options.
Reversing Fraudulent Transactions
Unlike credit cards, a debit card lets you transact funds already stashed in your bank account. If a debit card theft or forgery were to happen, your money gets instantly debited from your account. Retrieving the lost money can be an enormous challenge.
On the other hand, if you fall victim to a credit-card-related fraud, all you need to do is notify your bank, and it immediately kills any pending transactions and blocks your card. Most credit card lending firms resolve the issue at their end, so you do not have to compensate for the fraudulent transaction.
Enhance Your Credit Score
Sustaining a decent credit score is a financial obligation as it influences your eligibility to apply for loans and other finances. Debit cards do not get factored in when evaluating your credit score, unlike a credit card.
You can raise your credit score by swiping a credit card and settling your dues on time. This perk can be beneficial if you wish to apply for a loan or an unsecured credit card in the future.
Also, in case of loss or fraud concerning your debit card, your scheduled payments, including EMIs, loan repayments, or any other form of settlements, might get affected as it can take some time for the bank to transfer back the money into your account. This process can further damage your credit score.
Perks Like Priority Airport Check-ins, Free Lounge Access and More
Premium credit cards offer a ton of advantages every time you transact with them. For instance, you can receive a priority check-in without waiting in long queues at the airport and avail of airport lounges with no fees. However, you must note that such benefits vary from card to card.
You also get access to complimentary Lounge Access, which can help you layover hours of waiting at the airport.
With premium lounge access, you receive a luxurious environment to give a break to your mind, enjoy complimentary snacks, a quick shower, and more. You can enjoy perks like these without paying a dime if you own a premium credit card that offers Lounge Access.
Travelling Abroad
With premium credit cards, you do not have to waste your cash while converting your currency from INR to the country’s currency to which you are travelling.
You can use your credit card across the world, and foreign currency markup charges are typically 3.5% + Service Tax which is a relatively lesser amount and even as low as 2% on some of the premium credit cards.
Besides, you also receive reward points, or cashback on each purchase made, making it an ideal choice to pay while travelling abroad. You no longer have to worry about carrying cash if you own one of those selected credit cards with such offers.
Look for an online lending app that aids individuals financially via small loans and credit requirements.
Credit Card Insurance
Credit card insurance pays out your overdue balance (subject to any limits in the agreement) or creates monthly payments on your behalf to your credit card lender if your wages get disrupted by unprecedented events.
Credit card Insurance can alleviate the burden of carrying out payments to your credit card lender and helps preserve your decent credit rating.
While the benefits of credit card insurance vary from one lender to the other, the typical benefits include coverage for disability, job loss, critical illness and accidental death or dismemberment.
You can also enjoy certain plans altered for specific client segments, such as college-going children and spouses of the primary sanctioned cardholder.
The benefit value also differs by credit card, such as certain firms paying the minimum monthly payments on your credit card if you no longer have a job or get disabled. Some lending firms even pay out the entire credit card dues if you get diagnosed with a critical illness.
Final Words
Owning a credit card requires a significant amount of discipline and rational usage, and you might have to keep a check on the spendthrift version of yourself. However, if you can successfully practise self-control, a credit card gives you several benefits that a debit card or a wallet fails to deliver.
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