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

If you’re new to the world of credit cards, you may not be aware of some of the perks you can get with some cards. 

Depending on the card, you could get handy features such as free travel insurance, purchase protection or the ability to earn rewards points.

While cards that offer these sorts of perks usually come with higher interest rates or fees, the upside can be worth it.

So, if you’re in the market for a new credit card and the sound of these perks appeal to you, find out more about how they work.

Rewards Points Credit Cards

If you opt for a rewards credit card, you can earn points as you spend. This  can then be cashed in for perks such as free flights, accommodation or groceries.

Depending on the credit card provider you choose, you can earn Qantas Frequent Flyer Points, Velocity Frequent Flyer Points or American Express Membership Rewards. 

Each rewards system works differently so it’s important to read the T&Cs to make sure it’s right for you before deciding on a card.

Some credit cards even come with bonus point offers where you can earn thousands of points if you spend a certain amount within a particular time frame after getting your card.

Interest-free days on your credit card

Most credit cards come with a certain amount of interest-free days.

Essentially, interest-free days are a short period after you make a purchase on your credit card to pay it off before being charged interest. 

Currently in the Mozo database, there are over 200 credit cards that offer interest-free days, from 44 all the way to 110.

It’s important to note that the interest-free period does not start every time you make a purchase - it starts from when you get your statement. Here’s a breakdown of it using a card with 55 interest-free days:

Ultimately, the more interest-free days you have the better, because it means you have longer to pay off your debt without being charged interest. Just remember though, you need to pay off your balance in full by the due date to avoid being charged interest.

Purchase protection 

Some credit cards come with purchase protection. This means that things you buy on your credit card are covered under your card’s purchase protection policy if lost, stolen or accidentally damaged.

Be aware there will be different terms and conditions depending on the card provider and the policy. While some policies may cover a cracked phone screen, others may not so be sure to read over the policy before signing up so you know what you’re covered for.

Extended warranty

Many Aussie retailers offer manufacturer’s warranties on their products, and some platinum and rewards credit cards also offer extended warranties. This simply means that when you buy something on your credit card, the warranty on the item is extended, so it’s protected for longer.  

Price protection 

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

Some credit card providers offer this type of perk, 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’re aware of all the T&Cs.

Complimentary travel insurance

Another big bonus feature 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 insurance cover things like flight cancellations or delays, emergency cover, luggage loss or travel illness or accidents.

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

Make sure you read the T&Cs because there may be limits on the amount of cover you receive under a free policy from your credit card provider. You may even have to take out additional travel insurance to ensure that you’re fully covered.