Here’s how credit cards can get you great benefits while travelling

Most people are very cautious while buying a credit card or are aware of only two benefits of credit cards – either earning rewards or deals on online shopping.

Every credit card is different and provides one or more benefits. You should read instructions before choosing a credit card but here are some great lesser known benefits of credit cards that can help you when you’re traveling.

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1. Life Insurance
Credit cards provide you free life insurance while you travel by air and book the tickets from your card. Some cards have special insurance against hijacking.

2. Low foreign transaction charges
Credit cards offer best forex rate compared to other cards, even sometimes forex cards. The basic credit cards charge 3.5% transaction charges while some premier credit cards charge only 2% on foreign transactions. In India, most private banks like HDFC and ICICI bank offer similar rates. You can even order things online from other countries in their currency to save money on the conversation charges.

3. Free lounge access at airports
Most international airports have lounges where you can relax and recharge while waiting for the connecting flight but access to airport lounges is not free. You might have to pay around $20 or around INR 1000 for every visit.

Priority pass is a program that allows you free access to most international lounges but it has an annual cost of $100. Free priority pass is given with premier credit cards like Visa signature.

4. Lost Baggage Claim
All Airlines have the responsibility of refunding you a certain amount if your baggage is lost. If you have booked your flight with a credit card that offers lost baggage protection then you can claim a certain amount as per their policy.

5. Complimentary membership to clubs
Different credit cards provide a different type of luxurious memberships like Club Mahindra, Golf clubs, Taj Epicure and Vistara Club.

Many airlines have partnerships with credit cards to offer deals on travel packages, hotels, and air tickets. You may be eligible for great discounts at hotel chains like Taj, Marriot, Hyatt, Oberoi, and Hilton.

Credit cards can support or destroy your financial life and credit score depending on how you use them. You should understand the benefits provided by your credit card, and pay the dues on time to avail the maximum benefit.