Credit Cards Are a Flexible Borrowing Instrument

by admin on December 22, 2013

Credit cards offer a convenient and quick way to make purchases, especially when retailers and companies do not accept cash purchases. Some airlines, hotels, and rental car agencies accept credit cards only. Moreover, cardholders can make purchases within their credit limit, which makes credit cards a flexible borrowing instrument.

credit_cPurchase protection is another type of insurance used for items that are charged to a credit card and stolen, lost, or damaged. It lasts up to six months, and the item which is damaged or stolen is replaced or repaired. Credit cards come with different complementary insurance covers such as international travel insurance for cardholders, their spouse, and dependents. Premium insurance packages offer protection and emergency medical protection for cardholders and their hotel, trip, purchases, and rental vehicle. Emergency purchases insurance and hotel/motel burglary insurance are also offered with some credit cards. Additional benefits include discounts and coverage for overseas hospital expenses. Issuers that offer travel and rewards credit cards promise no points expiry, seating restrictions, or blackout periods.

Cardholders using credit cards with the word ‘signature’ on them are entitled to concierge service, emergency assistance, car rental insurance, and other benefits. Apart from better purchase power, credit cards offer a number of benefits. Concierge service helps cardholders with hotel reservations, vacation planning, restaurant recommendations, etc. Financial institutions offer beneficial features such as emergency cash disbursements and replacement. Banks offer different types of insurance such as purchase protection, extended warranty, lost card coverage, and complimentary travel insurance. Credit card companies also offer complementary travel insurance for overseas and domestic travel. Some credit card issuers offer travel insurance for international travel and not domestic travel.

Travel emergency medical insurance covers nursing and hospital care and prescription drugs. In addition, the policy may cover surgeon’s and physician’s fees and lost documents. Lost card coverage is a specialized cover giving cardholders the opportunity to register their debit cards and credit cards. If you lose your debit or credit cards, you can request to have them cancelled.

Credit cards offer a variety of perks and benefits depending on the credit card issuer and card of choice. Financial companies, credit unions, and banks offer auto, gas, rewards, and other cards. Visa, AMEX and Master Card feature many perks that are usually reserved for Platinum cardholders. Perks include airport club access and airport lounge access, among others. The MasterCard Global Service offers cash advances and emergency card replacement in case one’s credit card is stolen or lost. Credit card companies and banks offer generous incentives such as discounts, travel perks, assistance with booking, and a lot more.

Reference:

CreditCardReview.ca – List Of Canadian Credit Cards

MasterCard Canada

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