Credit cards are the common modes of payment these days. People use these cards because they do not have to carry money with them. They can also be used conveniently in order to buy items that a person cannot afford with the current savings. People have to pay high interests though on credit card purchases so credit card providing companies are always looking for different ways to promote credit card buying.
The companies, therefore run promotional campaigns where purchasers are either rewarded points or they are given cash credits which they can use to perform purchases from particular merchants which are generally partner organisations of the banks. Here, we look at the common perks that are offered by credit card companies to promote their customers.
System of Reward Points
Almost all credit card companies run a system of reward points. These points are gained whenever the customer uses their credit card. The reward points can then be reimbursed for free gifts such as restaurant meals and air tickets. Some companies also offer cash back on achieving a particular total of reward points. This will simply mean that a person will have to pay less when returning on credit card purchases.
Most people do not know that they do not have to buy additional warranties when buying objects from their credit cards. Credit card purchases often include an additional warranty for the next year as well for most products that are specially bought online. There are many items that come under this scheme. The additional warranty is covered by your credit card issuer. Many issuers though cap the overall warranty period to a maximum of five years.
Credit information can usually be bought from different companies that are experts in finding credit scores. Many top of the line credit cards, though allow their customers to access this information for free. This saves around 10 to 15 Pounds but still is a significant amount if you check it regularly.
Travel and Rental Car Insurance
Most credit card companies issue their cards with supplemental travel insurance. Most cards also have rental car insurance in their package as well. This covers the loss of money in case an accident happens and you do not have to buy separate insurance when travelling to places.
You need to ensure though that you buy your air tickets and rent your car through the credit card in order to register the trip to the credit card company for this perk. This is an important as it safeguards your interests.
Another nice perk that you may have on your credit card is the price protection. Many retailers guarantee a cash-back if the price for an item drops within a month. You automatically receive this offer if you buy an item with your credit card. You will get the best price regardless of where you placed the order for the product as long as its price dropped.
These are just a few of the perks that are available on credit cards. Premium cards offer more perks, but they usually have an annual fee as well. You need to find a balance between the available perks and the annual card maintenance costs.… Read More →