Some people think credit cards are bad because they can push you to spend more. But a responsible user would say otherwise.
Credit cards are a big help financially. And if you have a good credit history, you can gain perks and rewards. Other than that, your credit card provides a lot of benefits you may not know. Check with your bank to see if these perks are available to you.
Rewards and cash back schemes
Many banks offer special rewards to credit card clients. The more you use your card for transactions, the more rewards. They come in points that when accumulated, will give you benefits like shopping coupons or discounted lunch deals in premium restaurants. Or you can accumulate enough points and use them to waive your annual fee.
A cash back or rebate is simply getting back a percentage of your money every time you spend using your credit card for shopping, groceries, petrol, or dining. Banks offer a minimum of 1% and up to 3% rebates. You can redeem it as a statement credit or the money going to your bank account.
Access to special events
Credit card companies spend a lot on marketing and sponsorships. A lot of times, they sponsor big events and concerts, and as one of their clients, you could receive free access or discounted tickets to these events. You can also have pre-sale access and buy your tickets in advance, ahead of everyone else clamouring to buy theirs.
This is a premium offer to VIP clients, but some banks offer this to loyal customers as well. Is there a play that you want to see but couldn’t find tickets anymore? Your card’s concierge service may be able to find a couple for you. Or how about that popular restaurant that seems impossible to get a reservation? Your credit card company may be able to get you in. They offer this service for a small fee, of course. But that’s worth the price.
Frequent flyer miles
Check if your credit card is linked to an airline’s frequent flyer program. You don’t only get extra points for using credit to book your flight; there are also other perks you can gain. Like a free upgrade, access to the first-class lounge, or discount on your next booking.
Booking your flight using your credit card may also give you free insurance. You will get compensation for delayed or cancelled flights, lost baggage, and medical expenses in case you become injured during your flight. This insurance may not apply after landing and the entire duration of your trip, though. But it’s good to know you have that extra coverage.
Zero per cent instalments
For big purchases, some credit cards will allow you to pay them on an instalment basis at 0% interest charge. You can choose between 6-month, 12-month or even longer period and you’ll only need to pay the minimum required amount every month.
Your credit card is not just for big-ticket items or emergency purchases. If you use it well, it can help with managing your finances and getting rewards and perks along the way. So, call your bank today to know what benefits are available to you.