When it comes to credit cards you have probably already heard all the things that are wrong about them and how you would be better off without them. 

This, however, is not the case. 

Yes, some people do fall into credit card debt. But it is mostly due to a lack of financial planning on their part. If used well, a credit card is a tool of great financial flexibility. Additionally, credit cards come with a number of benefits. Some you may be aware of and others are so well hidden that you wouldn’t even know they exist. 

Today, let’s take a look at some of these lesser known benefits. Who knows, maybe by the end of this article, you’ll check the terms and conditions on your card to see what benefits you have been missing out on. 

1. Purchase Protection 

Most credit cards come with purchase protection. This is a type of insurance which provides coverage when you buy products above a specific amount. This insurance kicks in if the product arrives broken, it isn’t the one you ordered, it gets lost, damaged, or is stolen. 

If you go through the terms and conditions of your credit card, you may find more details regarding purchase protection. These details can include the time period for which the coverage is applicable, the amount of coverage per item purchased, etc. 

This is a great benefit to have especially if you make purchases online or if you like trying out new websites while shopping. 

For instance, if you have the HDFC MoneyBack Credit Card, you are entitled to purchase protection for fire and burglary. For the insurance to kick in, the product purchased needs to be at leastRs.5,000. The coverage for personal portable equipment is Rs.25,000 per item and up to Rs.2 lakh for all other assets. Additionally, this coverage is valid only for 180 days from the date of which you made the purchase. 

2. Travel Insurance 

Most travel credit cards also come with complimentary travel insurance. While some issuers do advertise this benefit, others chose not to. 

However, if you have a travel credit card, chances are that your card provides travel insurance coverage. Of course, there are caveats in place. For instance, all your bookings must be made using your credit card for the insurance policy to kick in. Some may even provide coverage for issues such as delayed flights or misplaced luggage. 

Before you decide to book your holiday, go through the fine print on your card and see if travel insurance is one of the benefits that comes with it. If it is, check to see how you can avail it. Because if you can get insurance coverage for free, why not take advantage of it, right? 

3. Concierge Services 

There could be a time when you are so busy that you don’t have time even for the simplest of tasks. Not to worry, you can always put in a request with your credit card’s concierge service to get the job done. 

From planning your entire holiday to making reservations at a restaurant you have been dying to go to, your card’s concierge service will do all that they can (and more) to ensure that what you wish for comes true. 

Of course, this benefit does come with a price (and sometimes it may be quite hefty). But honestly, it saves you a lot of time and is quite convenient. 

4. Zero Liability 

Imagine if someone gets hold of your credit card and decides to go on a shopping spree. You notify your card issuer and they block the card. But when you get the bill, you realise that you have to pay for someone else’s shopping spree as well. Sounds like a nightmare, doesn’t it? 

Well, a nightmare that will never come true with most credit cards. 

This is because most credit cards come with a benefit known as zero liability. This means that if your card is lost or it has been stolen, all you need to do is call your bank’s credit card customer care number, inform them and get your card blocked immediately/ Once you do this, you are not liable for any unauthorised or fraudulent transactions that have been made using your card. 

5. Rewards for Super Fans 

There are also credit cards out there that cater exclusively to the needs of super fans. While their benefits may not be hidden, not many people know of these cards. 

For example, if you are a Ferrari fan, you should consider getting the ICICI Bank Ferrari Platinum Credit Card. This card lets you enjoy discounts when you shop on the Ferrari Store. Additionally, you get 15% off on entry tickets to Ferrari World Abu Dhabi when you buy the tickets at the park. 

There are just some of the benefits that you may be unaware of when it comes to your credit card. The only way to know what your card offers you, without the shadow of a doubt, is to go through the terms and conditions with a fine tooth comb. 

Sure, it’s going to take time, but just think of all the benefits you will get to reap at the end.  

Author

I am Naisha Patel, a professional finance writer specializing in personal finance. I have been working in the finance sector for a long time. All the people seeking financial guidance are in different stages of life. I love to explore every possible angle of personal finance and simplify things for the common people.

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