You’re on vacation. You’ve just rented a paddle boat and you’ve set out with three of your best friends down a beautiful, serene river that passes through an ancient mountain range. The wind is cool and refreshing. Birds are singing overhead.
Just as you’re about to turn the bend, you see a heron coming in for a landing.
You turn to call your friends so they can be a part of the magical moment, too. As you do, your foot slips off of the boat. You fall. It happens so fast you can’t put your hands out to protect yourself. You hit your head on the board as you fall, knocking out a tooth.
Now you’re disoriented. You need medical attention. And you’re far from home.
So what do you do?
If you have a credit card, it may just be able to save the day.
If you’re resistant to using credit cards, you may be unaware of some of the benefits that you can enjoy if and when you use them.
In this article we’re going to take a closer look at some of these benefits. Some of them may really surprise you.
- Travel Insurance
Let’s return to our first example. The person in that scenario is travelling far from home and has been injured.
How can a credit card help? Surely you won’t whip out the plastic and try and fix your tooth with it. But that doesn’t mean that it’s totally useless.
Some credit cards offer free travel insurance as a part of their terms of membership. That means that you are protected from certain problems that can arise as you travel. One of these unforeseen expenses is medical care. Click here for more information about travel insurance.
If you were to fall and hit your head and need to seek medical or dental care, your card would cover some of that amount.
In order to enjoy this perk, two qualifications need to be met. First, you need to make sure that the card you sign up for offers travel insurance as one of its perks. The second qualification is how you pay for your trip. At least half of your expenses must be charged onto your card.
As long as you take the time to ensure both of these requirements are met, your trip can be saved from total ruin.
Right about now you might be wondering, “Why would I charge things when I am able to pay for them up front? Aren’t I wasting money?”
That’s a great question, and it leads us right into our next perk.
- Grace Period
You may not be aware that any charges made to your card are subject to a grace period. That means that your card can hold a balance for a while before interest is charged. This is a benefit offered to alle, or everyone, who holds a card
For many cards, this grace period is forty-five days. That’s about a month and a half, or six weeks. There are some companies that even offer a longer grace period of fifty-two days. That is nearly two full months.
So what does this mean, in simple language?
You know that credit cards charge interest. That is a fee added on top of the amount you owe the company. This varies between companies. Some charge as little as eighteen percent. Others can be as high as thirty.
But what all companies have in common is that the interest is not applied the moment you first make a purchase. Instead, you have the aforementioned grace period, or waiting period, before interest is applied. As long as you make your payment within the period, you will only be paying for what you’ve charged.
Nothing extra. Not a single kroner.
Be sure to keep that in mind when you’re considering whether you should open an account.
- Added Security
Let’s look at another scenario.
Let’s say that you’re an avid online shopper. You’ve decided to splurge on an expensive dress to wear to your best friend’s wedding. After all, you want to look your very best. You buy through a site you’ve never bought from before, using your bank card.
One you hit “finish and pay”, you begin to eagerly wait for your purchase to arrive. You receive a confirmation email, just like you normally would. No tracking number yet, but it promises that one is due to arrive soon.
You wait a day and still haven’t received it. No big deal, right? But as the days go by and you still can’t find any evidence of your order, you start to get nervous.
Finally, you find yourself two days out from the wedding and still without your dress. What can you do?
If you paid with your bank card, you may not be able to do much. You can call the company in order to try to straighten things out. But what happens if they are unwilling to remedy the problem?
If you had paid for the purchase with a credit card, you would have more protection. That is because you didn’t actually use your money to make the purchase. Instead, you used the credit line from your card. Now the credit card company is as much responsible as the vendor for ensuring that your item arrives.
While you might have limited success in trying to rectify the issue, here is where having a vast amount of resources on your side can really come in handy. You may find that your credit card company is able to come to a resolution – either by obtaining a replacement item or by cancelling the charge made to your card.
If you’re one of forty-five thousand Norwegians who have been the victim of identity theft (more information here: https://www.lifeinnorway.net/identity-theft-in-norway/), you’ll know how valuable this protection can be.
- Bonuses
You didn’t think we’d end this article without talking about some of the really fun perks credit can offer, did you?
These days, companies are willing to offer all sorts of premiums to lure you in and keep you as a customer. Some of them can be very attractive.
For example, you may find that purchases made on credit are eligible for cash back. Some companies offer up to fifteen percent cash back on everyday purchases. This can really add up quickly.
Of course, that isn’t the only benefit. There are other companies that offer you discounts on petrol. Some of these are based on the percentage of petrol you buy. Others give you a certain amount off of every gallon purchased. Again, these are savings that can really add up, especially if you travel frequently.
- Extra Peace of Mind
Even if you’re a diligent saver, the time may come when you are unable to pay an unexpected bill.
This could be anything from medical care to veterinary assistance for your beloved turtle to a last-minute flight to visit your ill Aunt Bertha. Whatever the reason, you will be glad to have this option in an emergency.
And remember, you have a grace period in which you can pay the money back without penalty. If you’re travelling to visit Aunt Bertha, several of the benefits come into play. You can save money on your flight. Your tickets, as well as your luggage, can be insured. You can earn points on the purchase even if you pay off your balance within the grace period.
No one wants their beloved Aunt to fall ill, but if it does happen, wouldn’t it be nice to know that you would be able to see her in her time of need?
Hopefully, now you can see the many benefits that a credit card can offer. If you decide to get one, make sure that you take your time and research the one that is the best fit for you.
