Many individuals are only aware of using the credit card, to borrow funds from the lender and repay it later. At the same time, you would be required to repay back the borrowed funds, along with an added interest rate.
However, while these credit cards can only be used to withdraw funds for any financial purpose, they can also be used to save cash in the long run. Given below are a few factors you can take into consideration to save your funds, if you are applying for any of credit cards in India:
Life insurance: When you apply for certain credit cards for certain usages say travelling, you are liable to get free insurance. Some of these cards also provide you with special coverage, such as hijacking. This form of life insurance works as a benefit on your credit card, providing you protection in case an unfortunate event occurs when you are travelling by air.
Protection against fraud: Online frauds have become one of the biggest and rising concerns of individuals who want to use credit cards in India. However, to compensate this risk, plenty of the credit card lenders are now providing protection against online frauds. These cards have different policies to safeguard your online transaction as long as you comply to their terms and conditions. Some cards will protect your from any fraudulent transactions even before you are aware of their occurrence or report the loss of a the card. However, you will be still required to take the necessary steps to report the loss or misuse of the card.
Low foreign transaction charges: Individuals have always assumed that using a credit card on an international trip is an expensive affair. However, certain credit cards do offer the best forex rate, if you only get a card with low foreign transaction charges. With the right rates, you can get a credit card charge of 3.5 % transaction, with premier credit card charges of 2% on foreign transactions. You can even use these premier cards to purchase other products from foreign websites to save funds in the long run.
Free access to lounges across selected airports: The airport lounges may seem like an expensive affair, when adding its charges to your credit card. With almost Rs. 1200 as a basic rate, you definitely would not want to add this charge on your card. But with the right credit card, you can easily get a free access to airport lounges, with an annual cost. As compared to daily expenditures, this will go a long way to reduce your expenditures.
Loan on credit card: Most of the credit card lenders are providing a loan against credit cards. However, the loan rates will depend on your credit worthiness based on your credit limit and your card usage. If you maintain a clean credit history with an excellent repayment history, you can easily get a loan rate that suits your need.