Credit card features you might not know about

Business

30 May 2019

#FinancialBytes: Five lesser known features and benefits of credit cards

Credit cards are one of the widely-used cashless payment methods because of the convenience they offer.

Credit cards also offer a ton of features and perks to the cardholders. While everyone does know a few common features of credit cards, there are several features that are lesser-known to most of the users.

Here are some lesser-known features of credit cards to know about.

#1

Customers can avail loans against their credit card

Customers can avail loans against their credit card

One of the lesser-known features of credit cards is the loan against credit card feature. Cardholders can avail loans on their credit cards against the available credit limit.

These instant loans are paperless loans and are one of the quickest and easiest options to borrow money as they are approved within minutes. However, all card issuers may not offer this facility.

#2

Credit cardholders can check their credit score for free

Another lesser-known credit card feature is cardholders can check their credit score for free.

Credit score companies, including major ones like CIBIL, Experian, Equifax, and Highmark, generally charge fees to provide credit profile or credit score.

However, these companies are usually tied-up with leading banks/card issuers and provide detailed analysis of an individual's credit profile to them; so, cardholders can access their credit score.

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#3: Customers can also use the balance transfer feature

Some credit cards also come with a feature for transferring the balance from one (or more) credit cards to a single card. While all credit cards don't have this feature, card issuers offering this feature allow their customers to transfer balances from other credit cards.

#4

Many credit cards offer extended warranty, price protection

Many credit cards offer extended warranty, price protection

Credit card holders can also benefit from features like extended warranty and price protection policies offered by several card issuers.

Through the extended warranty feature, one can get extra warranty for free on certain products purchased using their credit cards.

Meanwhile, the price protection policy helps customers get a refund if the price of something they have purchased has fallen.

#5: Convert higher credit card purchases into EMIs

Many credit card issuers nowadays are offering an option to convert purchases of a certain value into EMIs. Customers, who cannot repay high-value purchases fully in one billing cycle, can use this facility to convert those into EMIs at a comparatively lower interest rate.

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Most asked questions

How to apply for a credit card?

What are credit card loans?

What are some credit cards with good reward programs?

What are some credit card options for someone with no income?

What points should I consider before taking credit card?

More questions

How to apply for a credit card?

Asked 2019-05-30 17:03:03 by Lala Wakala

Answered by NewsBytes

You can contact the bank of your choice and they will explain you the process. Different banks have different criteria.

What are credit card loans?

Asked 2019-05-30 03:53:45 by Aaradhya Sen

Answered by NewsBytes

Loans on credit cards are a type of personal loan given against credit cards. Loans on credit cards are pre-approved. These loans are one of the quickest and easiest options to borrow money. Since they are pre-approved, customers need not submit extra documents; the loans are processed and disbursed quickly. Loans on credit cards are a kind of unsecured loans.

What are some credit cards with good reward programs?

Asked 2019-05-30 03:53:45 by Rakesh Subramanium

Answered by NewsBytes

Here are some credit cards offering good reward points and other benefits: Standard Chartered Platinum Rewards Credit Card, SBI SimplyCLICK Advantage Credit Card, YES FIRST Preferred Credit Card, HDFC Diners ClubMiles Credit Card, and Citi Rewards Credit Card.

What are some credit card options for someone with no income?

Asked 2019-05-30 03:53:45 by Ayaan Rodrigues

Answered by NewsBytes

In India, some banks issue credit cards to people with no income, even students, against fixed deposits and strong savings accounts. Some options include: Axis Bank Insta Easy Credit Card, SBI Card Unnati, ICICI Bank Instant Platinum Credit Card, and Kotak Mahindra Bank's Aqua Gold Credit Card.

What points should I consider before taking credit card?

Asked 2019-05-30 03:53:45 by Tejas Kadam

Answered by NewsBytes

Here are some factors to consider or things to analyze before taking credit cards: Analyze your shopping habits to find a suitable credit card. Know about the interest rate charged on the credit card. Which type of credit card is better for your - secured or unsecured. Credit limit offered to you by the bank. Calculation method for minimum amount for credit card transactions.

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