Credit Card Features: Maximize Your Finances

Overview

Credit cards are well-known for their various promotions and convenience. Yet, many people are unaware of features that make transactions easier, such as reward points, air miles, and more. Additionally, credit cards offer security features that protect transactions.

For an understanding of credit card features, consider the explanation below.

12 Essential Credit Card Features for Optimal Utilization

Abundant Promos

Undoubtedly, one of the most appealing aspects of using credit cards is the array of promotions they offer. Credit card issuers vie to present the most enticing deals. Common promotions provided by these issuers typically include discounts, cashback, and zero-percent installment plans.

Typically, this promotion applies to transactions made on your EDC machine or shopping app. Occasionally, the promotion is also offered post-transaction. This allows customers of the issuing bank to convert their bills into installments following the transaction, which can be arranged via the bank’s mobile banking application.

Point Reward

Reward points are a key feature often highlighted in credit cards. Customers earn these points by using their credit card for transactions. Thus, the more frequently you use your credit card, the more reward points you accumulate.

Reward points can lower the cost of transactions or even render them free. Therefore, it’s unsurprising that many individuals enjoy using credit cards to accumulate these points.

Air Miles

Travelers should be aware that traveling can entail significant expenses, particularly for transportation and accommodation. While often perceived as a pursuit indicative of a high lifestyle, traveling does not necessarily have to be costly.

Utilizing air miles can be highly beneficial for frequent travelers, particularly those who fly often. Each time you purchase an airline ticket with a credit card, you accumulate air miles. Similar to reward points, these miles can provide significant savings on transactions or even offer complimentary flights. Additionally, air miles can be used to upgrade your seat class, for instance, from economy to business class.

Autopay

Credit card bills aren’t solely from purchase transactions; they can also arise from recurring expenses like insurance, electricity, water, internet, and telephone bills. Utilizing the autopay feature ensures that you don’t have to stress about making these payments each month. Moreover, it allows you to be aware of the exact amount of your monthly expenses.

Contactless Payment

Offline credit card transactions typically involve using an EDC machine to swipe or insert the card. Nowadays, some credit cards offer a contactless payment feature that only requires a tap or close proximity to the EDC machine, eliminating the need to enter a PIN or provide a signature.

Mobile App

When using a credit card, it’s natural to want to monitor the amount of your limit that has been utilized, the transactions that have been charged, and other details. Waiting until the statement date can result in a lengthy delay.

You no longer have to wait. Nearly all credit card providers now offer a mobile app featuring limit information, real-time transaction billing, and options to convert bills into installments.

QRIS Payment

One convenient feature in transactions is QRIS Payment. Several credit cards offer this service, which is accessible through mobile applications.

Making transactions no longer requires opening your wallet to take out a card. This feature is very user-friendly; simply open your credit card provider’s mobile app and access the QRIS Payment feature. Scan the provided QRIS, and then select your preferred source of funds.

Cash Withdrawal

A cash advance is a service that allows you to obtain cash using your credit card. Similar to debit cards, credit cards can be used at ATMs for cash withdrawals.

Nevertheless, this feature should ideally be reserved for emergency situations. This is due to the fact that the amount withdrawn will appear on the credit card statement. Moreover, the fee for cash withdrawal is considerably high.

Credit Card Loans

In addition to cash withdrawals, credit cards can provide cash through a loan feature. Several credit card providers offer loans to their customers, typically on an invitational basis. This means the offer for a loan comes directly from the credit card provider rather than through a customer application.

Due to the nature of the invitation, this feature will be extended exclusively to customers who are regular credit card users. Furthermore, those typically considered for this offer are customers with a history of timely credit card payments.

Balance Transfer

The balance transfer feature allows you to transfer the outstanding balance or remaining bills from one credit card to another. Thus, by initiating a balance transfer, you can settle the remaining bill using your new credit card.

Typically, this feature comes into play when you close your credit card and obtain a replacement from the same provider. For instance, if your credit card is compromised, you would request a new one. Consequently, the credit card provider will issue a replacement card and transfer the outstanding balance from the old card to the new one.

However, before proceeding, you should verify with your credit card provider. Confirm whether you can utilize this feature on your credit card.

Installment

Any charge that appears on your credit card statement can be converted into installment payments. This option can make your bill more manageable in the subsequent month.

It’s also important to verify the installment system with your credit card provider, as many set a minimum nominal amount that can be paid in installments.

Credit Card Insurance

Credit card insurance, like general insurance, offers protection to cardholders. This protection typically includes the waiver of the obligation to pay outstanding balances in the event of calamities that impact the customer, such as physical disability from illness or accidents, and death. Thus, insurance serves not only to safeguard individuals or property but can also secure installment payments.

The Conclusion

Credit cards offer a range of features designed to enhance the customer’s transaction experience. These include options that lighten the load of bills through installments and promotions. Additionally, there are features that facilitate transaction convenience, such as contactless payments and QRIS. Moreover, some cards provide protection for your bills in the event of a disaster leading to disability.

Upon learning about the various features of this credit card, you’ll likely want to take full advantage of them. While these features may offer comfort in your transactions, it’s important to remain vigilant against becoming overly consumptive. Ensure that you adjust your spending to align with your financial capacity to pay the bills each month.

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