Generally, there is a common refrain regarding credit cards where individuals may be wary of opting for one. Such a cautionary approach arises from the possibility of credit card bills accumulating to a large extent if not cleared within time. Usually, individuals believe that the rate of interest that is charged leads to such an enormous amount, which is usually not the case as defaults are a common repercussion of mishandled credit.
Also, there is a dominant perception regarding the limited utility of credit cards, i.e., only an instrument of availing immediate credit for a specific period. However, this is far from the truth. Credit cards come with a range of benefits and features which may not only help to cover additional expenditure but also enable you to save money.
Here are some of the credit card features that one may not be readily aware of.
What are some of the credit card features you should know?
- Discounts and exclusive offers
Credit cards are not only for swiping during a transaction and paying the outstanding bill within the due period. It also has facilities for monthly instalment payment, reward points, discounts, and exclusive membership, among others.
For example – apart from providing airport lounge benefits on travel credit cards, the cardholder may also enjoy a subscription to selected brands and complimentary memberships. Moreover, cashback offers and discounts on credit cards transactions help to save money, among other rewarding advantages.
- Personalised benefits
Various credit cards extend customised benefits, which cater to the specific lifestyle spending needs of cardholders. For instance, the SuperCard provides its members with exclusive benefits when purchasing through its partner stores. One can save through are heavy discounts on accessories, apparel and groceries as well in the partner outlets. You can also avail a 5% cashback on down payment when opting for EMI mode of payment and save from it considerably.
Business owners can also avail business credit cards that offer benefits consistent with their frequent requirements. That way, the advantages and saving opportunities also multiply. Many more other customised card variants are available too.
- Relief against fraudulent transaction
Fraudulent transactions through credit or debit cards have become commonplace. However, there is a distinctive difference between the two cards. A dubious transaction with a debit card means the money debited from the bank is siphoned for good, often resulting in no recourse for recovery.
On the contrary, in the case of a fraudulent transaction through credit cards, the customer may not be penalised at all. If the credit card company is intimated well within time, the transaction is immediately cancelled, and the credit card is blocked. Also, in the case of any unauthorised transaction, features like zero-fraud liability cover ensure that the issue is settled at the provider’s end.
- Benefit of annual fee
At a time when credit cards are likely to be available for free, one may well wonder why he/she should pay an annual fee at all. Nevertheless, when you pay the annual fee, there are a whole range of credit card features that become available.
For instance, a free credit card is likely to not allow complimentary access to airport lounges or a fuel surcharge waiver when compared to a business credit card in India. The aggregate benefits amount to much more than the annual fee, in this case, thus making such payments worth.
- Enhancement of credit score
It can be worthwhile to know that credit cards can be used to improve your credit score. A healthy credit score is crucial to avail loan or even when applying for another credit card. Consistent and timely repayment of outstanding dues helps to build a reliable credit history.
A high credit score also enables an applicant to negotiate the rate of interest for the credit card.
Further, financial institutions are known to make financing hassle-free and time-saving with their pre-approved offers. Such a facility is also available with financial products like personal loans and business loans. You can check your pre-approved offer by providing a few basic details like your name and contact number.
Before you apply, be sure to keep these credit card features in mind. Once you are aware of these important features, you will be able to derive the most out of your credit card.