5 credit card features you may not know about (and might save you money)

When it comes to a credit card, hefty interest rates and annual fees might spring to mind. 

And while it’s true that some cards do have high interest rates and fees attached to them, it may be because they come with a bunch of bonus features. 

Credit card providers include these benefits in their products to help customers save on things like interest and travel insurance, or offer up protections on purchases for a more secure shopping experience. 

While bonus features can sound fun, it is worth considering if you’ll actually take advantage of them. In other words, is the cost of the card (such as the interest rate and fees) worth its benefits?

So what are some of these credit card bonus features? Read on and find out … 

1. Interest-free days 

Currently on the Mozo database, the average credit card interest rate sits at 16.88%. However, over 200 credit cards on the Mozo database offer up interest-free days, from up to 44 all the way to 110. 

What are credit card interest-free days? 

In a nutshell, interest-free days is the period of time after you make an eligible purchase that you won’t be charged interest on that transaction. But the catch is, you don’t receive the maximum amount of interest-free days on every purchase you make. It all depends when in the statement period the transaction occurs. 

Take this example: Let’s say your card offers 55 interest-free days. Here’s a breakdown of how many interest-free days you’d receive when you make purchases on particular days.

Ultimately, the more interest-free days you have the better, as it’ll mean you have longer to pay down your debt without being charged interest. Just remember though, you need to pay down your balance in full by the due date to avoid interest charges. 

2. Purchase protection 

Some credit cards come with a feature called purchase protection. This is where something you buy may be covered under your card’s purchase protection policy if it is lost, stolen or accidentally damaged. 

Depending on the provider and the policy, there are different terms and conditions of purchase protection from credit card to credit card. So while one option may cover a cracked screen on a brand new iPhone, others may not … so it’s worth reading over the policy before signing the dotted line so you know what you’re covered for. 

3. Extended warranty

Many Aussie retailers offer manufacturer’s warranties on their products, and some platinum and rewards credit cards offer extended warranties. What this means is, the warranty on the item you buy is extended, so it’s protected for longer.  

4. Price protection 

It can be frustrating when you buy a product from one retailer and find it cheaper somewhere else. But that’s where price protection on your credit card can come in handy. 

Some credit card providers offer this type of guarantee, where if a consumer purchases an item using the card but finds it cheaper somewhere else, they can be refunded the difference. In this instance, cardholders must alert their credit card provider of the cheaper item and meet any conditions under the cover (such as a time limit or minimum price difference). With that in mind, make sure you read through the price protection policy so you are aware of all the T&Cs. 

5. Travel insurance 

Another big bonus feature that is available on some rewards and travel credit cards, is complimentary travel insurance. This may come in the form of international travel insurance, interstate flight insurance or transport accident insurance. These types of insurances cover things like flight cancellations or delays, emergency cover, luggage loss or travel accidents. 

Bear in mind, in most cases you need to activate your travel insurance before your trip in order to be covered by the time you leave. This usually involves spending a certain amount on travel expenses prior to your departure, such as flights or accommodation. 

There may also be limits on the amount of cover you receive and other T&Cs, so you may need to take out additional travel insurance outside of your credit card to be fully covered. 

Want to compare credit card options? Take a look at these hot offers below or jump over to our credit card comparison table for even more!