More than Just Convenience! Discovering the Not-So-Usual Benefits of Using Credit Cards

Credit cards, highly popular across the world nowadays, have always been a curious case. For all their incredible benefits, the fear of hefty interests and charges, the possibility of fraud, negative impact on credit scores, and more just don’t seem to go away.

When weighed against the sheer number of benefits, however, the equation is pretty clear - when used judiciously with proper judgement, credit cards can give you a truly incredible experience in terms of spending, rewards, and much more.

As we said, the number of benefits of these cards is quite high. Let’s take a look at some of the known as well as less-explored benefits.

Building Up Credit Scores

Those 3-digit numbers have a huge role to play whenever you want any new credit. An oft-overlooked aspect of building up credit is the mix of credit (having around 10% weightage in the score calculation), in which your credit card can be quite useful.

By including a credit card in your portfolio along with other credit instruments, you can demonstrate a good credit combination that can bump up your credit Score. Moreover, by using your credit card for small and big purchases, you can steadily build your score, which can help you secure future loans and more at better rates.

Pro Tip: It goes without saying that the card has to be used responsibly - breach of credit limits, late payments, and others can do quite the opposite instead!

Travel Insurance Covered

For travellers, it is always advisable to get a proper travel insurance plan. However, several credit cards in UAE provide complimentary travel insurance coverage that may be sufficient for occasional trips.

With the top credit cards in uae, you can be covered for emergency medical evacuation, emergency medical costs, and more. In fact, some cards also cover one or more family members of the primary cardholder. This way, you can get at least some level of travel insurance coverage without any additional charges.

Over-the-Top Spending Protection!

The ‘protection’ part of credit cards doesn’t just stop at travel insurance - several cards offer purchase protection, extended warranty, and more for all your valid purchases.

The extended warranty feature, as the name suggests, provides a warranty (generally up to 12 months) for a product purchased using the credit on top of its standard warranty. Purchase protection, meanwhile, provides coverage in case of theft or damage of the purchased product in the form of reimbursement or replacement.

With such features, you can ensure that your purchases are not only easy but completely secure as well!

Speaking of which —

The Utmost Convenience of Spending

Almost everyone knows that credit cards facilitate easy cashless transactions. Yet, this is just one aspect of the convenience offered by cards.

Most credit cards offer auto/direct debit facilities, which ensure that your regular payments are settled on time — all without requiring you to take the burden of remembering the dates.

With the EMI facility, meanwhile, you can break down your expenditures into small chunks and pay the instalments over time. This presents a great option to take away the stress of managing cash for large purchases at the moment (provided that you responsibly settle the bills later - remember point #1!).

Gateway to Incredible Experiences and Value on Spending

Last but certainly not least is the aspect of rewards and special offers. While most of us are aware of the credit card reward points, it’s worth mentioning that the sheer number of options to utilise these points is, well, mind-boggling.

Depending on your credit card, you can redeem the points that you earn with spendings on discounts and offers regarding hotel and flight bookings, shopping, cinema, chain retails, and more for the start! Interestingly, you can find different types of reward points, miles, cashback rewards, and more. As a cardholder, you can certainly look for credit cards with points that match your specific requirements. For instance, as a frequent traveller, you can go with cards that offer Miles points.

On top of these points are the incredible offers that you can enjoy to get great value from your card. With any of the top credit cards in the UAE, you can find special offers such as ‘Buy 1 Get 1’ on movie tickets, shopping discounts, valet parking, complimentary airport lounge access, golf access, discounted cabs and car rentals, flight and hotel upgrades, dining discounts… and much more!

When you think about it, you may realise that by simply making transactions with your credit card, you can open the gateway to a realm of fantastic offers and enrich your lifestyle, travels, shopping, and more!

Written By: Abhimanyu Chaturvedi