Insurance of rental cars paid for with the card
Credit cards are indisputably a very convenient means of payment that can be used in many ways. Above all, fast payment for internet transactions and cashless payments abroad are a reason for many account holders to apply for a credit card from their bank. If the credit card is requested from the house bank on site, annual fees of between 20-140 USD are due, the amount of which depends on whether the standard card or the golden credit card is chosen. Such credit cards are also often equipped with additional services to make them more attractive to customers. This includes, for example, various types of insurance, such as travel health insurance, luggage or cancellation insurance. Insurance of rental cars paid for with the card, such as legal expenses insurance, is also included.
This insurance then applies both at home and abroad. In any case, applicants should inform themselves about the scope of the insurance benefits, because it is not uncommon for these to apply only to the cardholder, but not to his family. Furthermore, the offers differ from bank to bank, for golden cards there is usually a significantly higher level of insurance coverage, but the fees for these cards are also very high. However, other additional services can be associated with credit cards. For example, the banks usually issue a credit card with a lower price for the partner, the so-called partner card, and collecting bonus points for purchases with a credit card are such possible special features. Some credit banks that also issue credit cards now offer a special additional service.
Repay the sales made with the card in small monthly installments
They offer their customers the opportunity to repay the sales made with the card in small monthly installments. In this way, flexibility can be increased significantly, purchases are also possible when the checking account is already empty. However, every bank customer who wants to apply for a credit card should check whether these special additional services are really needed. For example, the insurance they contain is often very expensive and can be taken out much more cheaply from other providers. Bonus campaigns are only worthwhile if you actually shop in the corresponding stores. Customers who only want to use the credit card for payments should therefore look for alternative offers where the credit card is issued free of charge.
Such offers are offered, for example, by direct banks in connection with their checking accounts, and other providers also issue their cards entirely without annual fees. With these offers, in most cases, additional services such as insurance and bonus programs have to be dispensed with, even for credit cards with a repayment function, an annual fee almost always has to be planned. In contrast, credit interest is also used for free credit cards, but their amount differs considerably between providers. In most cases, holders of free credit cards do not receive their statements by post, but have to access them online. Conclusion: If you do not need this many additional credit card offers, you can save the annual fee and spend this money elsewhere.