When credit cards are more than just credit cards

By August 6, 2019 Money Matters

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Credit cards are a much-maligned financial instrument. Yes, when used without discretion it can be a dangerous instrument as it lets you spend much beyond your means. Which could lead to many problems later. However, its actually an instrument of convenience that allows to access big ticket purchases without using cash. More importantly, there are a number of benefits that come with credit cards that are not that widely known. Let’s take a look at some of those benefits as compiled by the author in this piece below. Team RetyrSmart

When credit cards are more than just credit cards

Airport lounge access

You can use your credit card to make your air travel more economical and convenient. Numerous credit cards offer complimentary lounge access at domestic and international airports. This gives you a chance to enjoy free Wi-Fi, buffet spreads and comfortable seating.

Baggage and travel insurance

If you travel often, look for a card that offers complimentary insurance in case your baggage or important documents like passport get lost or stolen during travel. Some cards offer a cover for travel both within the country and abroad. Others extend credit card benefits even to lost tickets or a missed connecting flight.

Purchase protection insurance

Many credit cards offer you compensation in case goods purchased with the card are damaged due to events like a fire or get stolen by thieves. Purchase protection is normally given up to a particular limit and against events listed by your issuer.

Accident insurance cover

Some credit cards help by means of an insurance cover in case you meet with a road or air accident. These covers offer substantial financing, in lakhs, and even help you take care of emergency hospitalisation charges abroad.

Fuel discounts and surcharge waivers

One way to save on petrol or diesel is to get a fuel credit card that offers surcharge waivers and discounted rates or cashback deals at fuel stations. At times, the waivers are limited to a particular percentage and cashback offers are reserved to certain stations only.

Discounted and free movie tickets

As captivating movies premiere at theatres, you can be entertained and spend less by opting for a credit card that has deals on movie tickets. For instance, depending on the card you choose you can either get complimentary movie tickets or discounted prices every month.

EMI facility

Cards go beyond offering you credit card reward points that you can redeem for regular spends and thereby, make them more affordable. Certain cards double up as EMI cards and allow you to convert purchases above INR 3,000 into smaller instalments. By servicing smaller amounts, you can make big-ticket spends easily.

Interest-free cash withdrawals

Usually, you cannot use a credit card to make withdrawals from an ATM, but some variants allow you to avail this facility at a premium. One of the most unique credit card features is the facility to make interest-free cash withdrawals at ATMs. This powerful feature reduces the difference between credit card and debit card in terms of utility.

Quick personal loans

When you need funds during an emergency, you can use your credit card to convert the cash limit into a loan. This facility is offered by a few issuers, and can impact your convenience greatly. For instance, certain credit cards can also functions as a loan card, wherein you can use it to obtain a 90-day interest-free personal loan as per your current credit limits and repay it in three easy EMIs.

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