India has one of the most promising economies for credit card companies. There is an increasing demand for this financial tool in the Indian market. According to a recent report from the Reserve Bank of India, the total number of credit cards increased by 7.39 million between January 2017 and January 2018 alone.
Such massive growth is largely thanks to the convenience and multitude of credit card benefits users now enjoy. Financial institutions provide these advantages to entice prospective customers and encourage existing ones to use their cards even more. However, these products also come with some great added benefits you may not be aware of.
Lets’ take a look.
- Emergency loans –
Certain credit cards, like Bajaj Finserv RBL Bank SuperCard, allow you to avail an emergency loan against your credit account. You can convert your unused credit limit into an interest-free loan. The entire process is kept simple and hassle-free; you can even convert the limit to a loan from the dedicated mobile app.
- Theft/fraud protection –
Credit card companies employ strict theft and fraud protection systems to guard you against fraudulent transactions. It is one of the major credit card benefits as other types of plastic money like debit cards do not offer such features. You will have to report to your financial institution whenever you notice a deceitful transaction on your account and the lender will follow on with the legal procedures against the theft.
- Credit limit increase –
You can request your financial institution to increase credit card limit if your repayment capability grows. Lenders may also increase the limit automatically if you maintain a history of timely repayment, use the card responsibly, and carry a high CIBIL score.
- Interest-free grace periods –
The grace period is a 21 to 25-day timespan between billing cycles when a cardholder can repay the due amount without any interest. It is a great feature for people who want to save the amount of interest while paying their card’s bills. You will find the details of the grace period in the terms and condition page or your card’s statement.
- Cash withdrawals –
Certain credit cards also allow their users to withdraw cash from ATMs. Lenders usually charge interest and a transaction fee against the amount you withdraw and for the duration of repayment.
However, cards like Bajaj Finserv RBL Bank SuperCard offers a 50 day interest-free period and a flat 2.5% processing fee whenever you withdraw cash from an ATM. It gives you a time window when you can repay the amount without paying any extra money as interest.
Bajaj Finserv also brings you pre-approved offers on credit cards, personal loans, home loans, business loans, and numerous additional financial products. Not only do these offers simplify the process of availing finance, but they also help you save time. You only have to share some essential details online to check your pre-approved offer.
- Easy EMIs –
Top credit card benefits also include an easy EMI feature that allows you to convert credit purchases into easy EMIs. This feature enables you to pay for expensive purchases without straining your monthly budget. EMIs offered by financial institutions are generally affordable with a flat processing fee and a suitable number of instalments.
- Universal acceptance –
A significant benefit of using a credit card is its universal acceptance. You can utilise it for both domestic and international transactions.
Credit card companies even offer reward programs for international spending. Feature-rich credit cards often disburse a large number of reward points for international expenses. You can collect and redeem these reward points afterwards to get cashbacks, discounts, gift vouchers etc.
These are some of the lesser known but useful credit card benefits that your financial institution may offer. Other than these, you can also get privilege facilities like complimentary airport lounge access, milestone bonuses, movie tickets, and welcome gifts with your card. Companies also offer fuel surcharge freedom of up to Rs. 200 every month if you use your credit card to purchase fuel for your vehicle.
These credit card benefits allow you to save a lot of money against your purchases on an annual basis. It can provide valuable financial backing to tackle monetary deficiency and help you pay for the essentials without straining your budget.