Credit cards can be of great help during an emergency and get you rewards. You just need to have the right strategy and be financially disciplined. The other advantage that credit cards have is that they come with insurance benefits. To enjoy these benefits, you need a good credit score.
However, according to research, a whole 34% of credit cardholders have poor credit reports. Cardholders can take care of repairing these credit reports and save money while doing it. They can also opt for the services of one of the top-rated credit repair companies to get their credit report back on track.
Remember that it’s with a good credit score that you’ll enjoy the benefits that come with being a cardholder. A good credit repair company will sort out errors and negative information on your report. Thus, you must seek the services of a reputable company with good customer service.
Companies have different types of insurance policies built into their credit cards. Some of the insurance benefits are purchase protection and travel insurance. Most benefits are incentives meant to make the credit card relevant.
For instance, some travel credit cards come with travel insurance. Users qualify for the insurance if they meet the eligibility standard for the card.
It’s important that users read the terms and conditions to know what the insurance covers. This is because a lot of policies have limitations and exclusions on their cover. The limitation may be relevant, for instance, in the case of domestic travel.
There may also be a specific time limit within which a user is allowed to make a claim. Failure to know such details can be reason enough for your claim to get denied.
Credit cards come with many benefits. The benefits include:
- The chance to build your credit history
- Liability protection in case the card gets stolen or lost
- Rewards and cashback on each lure
There are many other benefits with which some cards lure users like discounts whenever you shop at a certain store.
But how about the little-known benefits? A lot of credit cards have perks that can save you money and help you avoid going through a lot of hassles. You just need to know how to access them. Below, we get to discuss some of the benefits of insurance in that credit card that you probably don’t know about.
Who doesn’t hate it when they have to cancel a trip? But unpredictability is part of life. Sometimes emergencies crop up and pressure you to cancel a trip. As a result, people lose a substantial amount of money on non-refundable flight tickets.
However, if you used your credit card to book your flight ticket, you can get compensated by the trip cancellation insurance.
Keep in mind that compensation is dependent on the definition of the word “emergency.” What will be considered as an emergency cancellation may vary from one card company to another.
This insurance benefit covers an individual for potentially heavy costs if their rental car gets damaged or stolen. Assuming that you rent a car and decide not to pay for the insurance provided by the car company. Unfortunately, you get into an accident and the car suffers significant damage.
In such a case, you won’t have to pay for the damages to the car out of your pocket. If you used your credit card to pay for the rental car, those damages will be paid for by the rental car insurance.
Note that this insurance does not cover damages or theft of valuables inside the car. Neither do you get compensated for personal injuries. Also, this insurance claim does not cover damages to other vehicles in the collision.
This is a rare insurance benefit that comes with credit cards. We live in an age where every new smartphone released in the market tends to be better and more expensive. Meaning, your finances get significantly affected if your phone breaks or gets stolen.
This insurance covers theft and damages to your smartphone. Mobile phone insurance is not costly. However, credit card coverage enables individuals to opt out of any extra charges. It’s important to note that policies differ depending on the issue.
Airline baggage tracking technology has improved significantly over the recent past. Despite that, a piece of check-in baggage still goes missing every once in a while. Sometimes the baggage gets damaged while in transit or ends up at the wrong place.
In such a case, the baggage insurance will ensure you get reimbursed for the damages or losses. But remember that such reimbursements only happen if you used your credit card to buy the ticket.
Baggage insurance is just like baggage delay insurance. With the latter, a client gets reimbursed for the items in a piece of luggage that needs to be replaced. It also applies when there’s a delayed baggage delivery or the luggage ends up in the wrong place.
Traveling helps us relax and we wouldn’t want to get inconvenienced while on vacation. But sometimes the unexpected happens and it can happen at the wrong time.
In case your items get stolen from your hotel room, the complimentary hotel room insurance comes in handy. For as long as you paid for the room in full with an eligible credit card, then it will be used to compensate you.
Keep in mind that sometimes this benefit is only offered at domestic hotels. However, some providers offer this benefit to international locations.
Personal accidents have been rising on our roads now and then. It’s due to this that individuals are advised to get a personal insurance coverage plan.
Credit cards offer cardholders the benefits of personal accident insurance. It enables users to claim an amount in case of injury or death as a result of the accident.
Keep in mind that it’s the type of credit card and card issuer that determines the coverage amount of the money you’ll receive.
Many cardholders sign up for rewards and advertised benefits themed around store brands or travel. What they don’t know is that there’s a lot of hidden value in little-known perks.
Cardholders must take a look at their card benefits guide. This will enable them to know what the credit card offers. You’re likely to save money and time when you find out about a perk or three that you had no idea existed. Review those terms and conditions to get to know your rights, obligations, and coverage.
This segment of the insurance sector is increasingly escalating. Financial institutions are competing for new clients and benefit offerings continue to grow. So before purchasing that new electronic or planning your travel, check to know the protections the credit card offers.