Benefits of Using Credit Cards

by admin on January 3, 2014

Credit cards offer many benefits in addition to better purchase power. Cardholders using credit cards with the word ‘signature’ on them are entitled to concierge service, emergency assistance, car rental insurance, and other benefits. If you use a signature card to pay for a trip, you are entitled to lost luggage reimbursement and travel accident insurance. Issuers offer beneficial policies such as rental car collision insurance and trip interruption insurance.

Credit card companies offer complementary travel insurance for overseas and domestic travel. Some policies are not included, and borrowers pay for them while travel insurance may not cover overseas travel. This insurance typically covers lost luggage, missed connections, and flight cancellations. It covers medical expenses, lost documents, disability and accidental death. Serious events such as ransom, kidnapping, and hijacking may be covered as well. Lost card coverage is a specialized cover giving cardholders the opportunity to register their debit cards and credit cards. In case your wallet is lost or stolen with all credit and debit cards in it, one phone call is all you need to have your cards cancelled.

There are a number of added benefits and perks depending on the credit card of choice and the credit card company. Clients of banks, credit unions, and credit card companies can choose from cashback credit cards, no annual fee credit cards, and other types. In addition, Visa, American Express, and MasterCard credit cards offer many beneficial features to cardholders. Holders enjoy room upgrades, airport lounge access, 24/7 customer service, and others. The MasterCard Global Service offers cash advances and emergency card replacement in case one’s credit card is stolen or lost. Credit card companies and banks offer generous incentives such as discounts, travel perks, assistance with booking, and a lot more.

Cardholders also benefit from purchase protection, and items are often covered for up to 3 months from the date of purchase. It lasts up to six months, and the item which is damaged or stolen is replaced or repaired. Apart from standard insurance types, some credit cards feature auto rental insurance, common carrier accident insurance, emergency medical travel insurance, and more. Premium insurance packages offer protection and emergency medical protection for cardholders and their hotel, trip, purchases, and rental vehicle. Insurance policies also cover detention, funeral expenses, and accidental death.

Cardholders also benefit from cash service, airline tickets, and medical referral assistance. Card companies offering rewards and travel credit cards advertise no seating restrictions, points expiry, or blackout periods.

Credit cards offer a convenient and quick way to make purchases, especially when retailers and companies do not accept cash purchases. Some airlines, hotels, and rental car agencies accept credit cards only. Moreover, cardholders can make purchases within their credit limit, which makes credit cards a flexible borrowing instrument.

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