Partner card, travel health insurance, credit line, bonus programs – additional services with credit cards can be worth a lot in the event of an emergency. Especially high-quality credit card types use it to advertise. But do they really make sense? What you should know about it now.
Additional services should make the difference
Better credit cards are not just limited to cashless payments and the ability to withdraw cash quickly from ATMs worldwide. Well-known companies in particular now offer far more than classic services through exclusive card products. Second card for the spouse, loans in the form of overdrafts, bonus programs and even typical insurance products – the differences in terms of additional benefits can sometimes be very large. What the partially non-sectoral services promise and what needs to be considered.
Which insurance policies are offered
International travel health insurance:
The additional service is worthwhile for you if you are traveling outside of Germany. Because the statutory health insurance does not cover the treatment costs completely or not at all depending on the travel destination. The cash register never pays for return transport.
Travel health insurance protection should apply worldwide and regardless of whether you paid for the trip with a credit card. If you are traveling with family, your relatives should also be insured. Diseases that are known before the trip are generally excluded.
Your luggage is also insured if it is damaged or does not arrive at the holiday destination. As a rule, a maximum insurance sum applies, especially for documents and cash. In addition, there is usually a deductible, around 10 percent of the insured loss.
If this insurance is included and you have to cancel the trip for an insured reason (e.g. serious illness or loss of job), the insurer will cover the cancellation fees. The protection should apply regardless of the card used and should also apply to fellow travelers.
Fully comprehensive rental car protection
If a rental car is rented on vacation, the credit card also includes comprehensive insurance to protect against damage caused by extreme weather events or personal negligence. This often proves to be cheaper than a degree on site.
Car protection letter:
If you are traveling by car and suffer an accident or breakdown, a rental car, towing service and repatriation are organized and any accommodation costs are covered.
If the payment card has a credit line, the expenses will not be debited from the corresponding current account within a few days. Rather, this happens once a month. Up to this credit card statement, you are granted a small loan, so to speak, mostly without interest. Credit lines for charge cards are typical. The credit limit determines how high the small monthly loan may be. The credit card limit is usually one to two months’ monthly salary.
Partial payment option:
Some premium, gold or platinum cards now include partial payments, also known as revolving credit. If this is included, you can pay your credit card statement in installments. When paying in installments, debit interest mostly accrues from the time of settlement, which can be comparatively high. The installment payment option cannot always be excluded.
Use your credit card to pay with it, benefit from the cashback program in the form of a repayment at the end of the year, quarter or month. About 0.5 to 2 percent is common. The prerequisite is that a certain minimum sales volume is reached. In some cases, an immediate discount on the purchase price is also possible.
Credit cards can offer attractive discounts for certain activities. Savings potential can be seen by booking a rental car, hotel or a cruise. The prerequisite for this is that the booking is made through a partner company.
Every time you use your credit card, you will be credited with points or miles. If you have collected for a correspondingly long time or have spent a certain amount on your credit card, you will receive a bonus. For example, you can save on your next hotel stay.
This is a second card that refers to the same checking account. For example, it can be used by the life partner, spouse or another family member. They are entitled to the same uses as you as the holder of the main card. The partner card is usually billed via the main card. The second card is not always given free of charge. Any fees should also be taken into account when comparing credit cards.
To what extent additional services make sense
This basically depends on your needs. If you travel frequently and if a high level of protection is important to you, travel insurance can definitely be recommended. Illness or traffic accidents on vacation are not uncommon. If these services are integrated in the credit card, you can save yourself the expense of purchasing a separate travel insurance package.
Credit lines allow you more freedom of payment. Think about how high this should be and whether the credit card institution charges interest on it. This can be particularly high for installment payment options if the loan is only repaid in installments.
Bonus benefits and discounts always sound good. However, these should not lead to additional purchases. It is also necessary to check whether a hotel room or rental car is otherwise not even cheaper. Partner cards for use by the partner are often useful. However, pay attention to any fees here as well.
Here you will find a list of all important and popular (additional) credit card services. We provide you with detailed descriptions and give tips on what to look for when choosing an additional service.
- Car rental insurance
- Partner card
- Foreign insurance
- Cancellation insurance
- Airport lounge access
- Contactless payment (NFC)
- Installment payment
- Credit (rechargeable)