Credit Card Offer is offered by almost all credit card issuing companies. Credit card market is a highly competitive one. The products offered by the companies are nearly the same with little scope of product and service USPs ( Unique Selling Point ). In order to allure the customer s into its ambit the card issuing companies offer incentives to its customer s. The nature of the credit card offer gives mileage to these companies over their rivals and creates USP for themselves. Consumer s, in need of credit, compare the different schemes of different companies and also give a weightage to the credit card offers thereunder and choose the most suitable one matching his needs and specifications.
Credit card issuing companies offer incentive (bonus, like discounts or cash back on purchase s) to customer s doing large business es with it. But many card s give insurance on accidental deaths, extended warranty, reclaiming service of VAT, schemes covering rents, etc. Now let us discuss about some of the credit card offers :-
Discount Rates
Credit card s give its customer s discount offer ranging from 10% to 50% on every purchase of goods and services such as financial services, technology, communications and business travels.
Insurance Coverage
It provides coverage for the value of the loss of certain business related belongings in full but subject to a certain limit. Secondarily, it also covers the personal effects for rental vehicles up to certain period.
Medical Insurance Coverage
Expenses taking place due to health problems like hospital admission or emergency care are being covered under such facility but subjected to a predefined limit.
Referral Service
It assists the cardholders by providing him with legal referral and bail bond when they are abroad.
Extended Warranty
Company gives extended warranty to those goods which have been purchased on the credit card of the company itself. This works as an incentive for the customer s to buy items on such a credit card .
Roadside Services
This includes availability of roadside emergency services through out 24 hours.
VAT Reclaiming Service
It gives an efficient mode to the companies in reclaiming their Value Added Tax (VAT).
Travel Assistance
This offer includes:-
- Help of emergency cash requirements
- Help through replacement of loss in ticket and documents
- Assistance in loss of luggage
Some of the best credit card offers are given above which help the credit card issuing companies to allure the customer s to access their credit card s.
- Computation Method for calculating the Outstanding amounts
- Grace Period for payment of outstanding balances
- Annual Percentage Rate for Purchases
- Delinquency Rate
- Annual fee
- Over-limit fee
- Other Annual Percentage Rates,
- Information on the Variable Rates
- Penalty amount on late payments
- All types of transaction fees (including Cash Advances, Convenience cheques and Balance Transfers)
Thus a consumer could Credit Card Offer any time time he wants with a door-to-door facility given by the card issuing companies. But before applying for a credit card a customer should be cautious about the consequences of continuous non-payment of outstanding payments where the interest rates increase in a cumulative manner. Hence, a credit card applicant should be conversant with the payment structure of the principal and interest rate because many a times it has been observed that non-payment of outstanding has led to bankruptcy of the customer.
But it is needless to mention that credit cards give financial flexibility to the consumers and the meticulous payment of the principal amount(in part or full) within the grace period and interest payment thereafter helps a consumer to be financially healthy and at the same time reallocate his resources according to the needs. Thus, a customer can always Credit Card Offer but at the same time should try to make timely payments of outstanding in a specified time limit for avoiding excess burden.