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Understanding Your Credit Card Contract

When you are issued a credit card, it is not unusual for someone to look at only two things: the credit limit and the interest rate. However, many people do not realize that many credit card companies offer additional services to their clients just for using their credit card.

International Benefits

Many credit card companies provide international insurance policies when you travel. These minor policies will provide you air transport in the event that you are sick or injured. In addition, many credit cards will provide airline cancellation insurance if you purchased the tickets with their card.

Disability Insurance

Many credit cards have a policy in place that will help you if you become disabled. These policies often delay your payments for a specific amount of time, or reduce your payments accordingly. Some credit cards require you to purchase these policies while others have this type of insurance included.

Accidental Death Insurance

Most major credit card companies offer accidental death policies on their card holders. These small policies are hardly ever claimed on, however, which is a shame. In the event of the card holders accidental death, the surviving family members can make a claim on this policy. The policy will pay off any outstanding credit card debt from the policy and issue the remaining balance to the estate. Most people are unaware of this benefit and fail to make a claim. This small policy can make a large difference when paying off final expenses.

Extended Warranties

When you purchase a large ticket item, before you pay for additional warranty coverage, make sure that you do not already have protection with your card. Many cards will offer automatic extended warranties when you make the purchase using their card.

Unemployment Policy

If you find yourself unemployed and unable to make your payments, look through your benefits package. Many cards offer a program that will delay your payments for a short time to allow you to regain employment.

Discounts

Most cards now offer programs where you can receive automatic discounts if you use their cards to make a purchase at specific retailers. This is especially true for online purchases. Many of these discounts include free shipping or a guaranteed percentage off your total purchase, regardless if they are sale items. These discounts may also extend into savings on airfare, car rentals, insurance policies and other services.

Rewards Programs

It is not unusual for credit cards to offer reward programs to their clients. These programs usually are a points program that will allow you to convert your points into cash or gift cards at a later time. Most of these programs, however, require the card holder to register for this program.

Every card issuing company has their own benefits package that they offer to their clients. Most people, however, never read these brochures that come with their welcome packet and miss out. A quick review of these benefits can save you money and provide services to you in a time of need. If you no longer have your benefits brochure, you may be able to find the information out on the credit card website.