When Does It Make Sense To Purchase Travel Insurance?

Buy Travel Insurance – The cover that you will need when you travel, alone or with your family, to take care of unplanned issues like a medical expense, losing luggage, an accident ( flight, ship, etc.), is what roughly travel insurance is all about. Travel Insurance Plans or Travel Insurance Policies provide that cover. The fundamentals aside, every company has its limitations, rules and the extent to which it offers cover. The cover can be taken on an individual basis or for whole families. Most travel insurance policies are taken out at the time of booking the trip, to provide cover for the duration of the journey or a series of the trip. One time, single trip travel insurance and multi trip travel insurance are offered by most travel insurance providers.

Here Is Why It Makes Sense to Buy Travel Insurance

If you’re a traveler you’d know right away that more than flight accidents, baggage loss is likely to offer; as a matter of fact that is the most common issue with travel; getting it covered makes sense.

travel-insurance

Medical Emergencies – Not always are you prepared to meet medical expenses while in transit, especially when in another country; check out for the medical cover

Travelling takes you out of your comfort zone; even the smallest injury can spoil your whole trip and find you completely unprepared in a different location in an altogether different set up; see if you cover includes injuries and illness

Your health insurance is only good in your country; not many people have health insurance that is international, in the sense that it works outside your countries of origin; it makes sense to be better prepared, especially if you are on a trip as a family

If you’ve made a plan and it doesn’t turn out that you’ll be going ahead with the plan, it doesn’t make sense to pay right? You’d have to if you’ve booked. This is where travel insurance gets in to see that you need not pay for a canceled trip.

Check out plans to understand the cover. If you’ve simply bought travel insurance and it does not cover your medicine cost adequately, it would be an incomplete cover.

Buy Travel Insurance – Citibank Hong Kong includes emergency medical evacuation; medical expenses up to HK$1000000 and also comes with an accident benefit. Many banks offer something in this range, and even more, only you need to shop around and pick the most efficient ones. Ask around, and you’ll know which travel insurance provider lives up to the claim they make. Some even cover sports activities like skiing, snowboarding, horse riding, etc. (for amateurs of course). See what suits you best after going through the whole range and matching it with what you can expect on your trip, will let you find your best travel insurance plan.

What Are The Benefits When Shopping For A New Credit Card?

Credit Card Benefits – Okay, asking yourself what benefits you should look out for when shopping for a new credit card? Here’s what you need to know first.  A credit card is, at a very basic level, a credit—a loan that is extended to you because of your credit rating, income and your ability to pay back the said amount with interest.  It is merely a loan that you pay back either in parts (minimum payments, part payments) or in full at the end of a period.

The long and short of it is that all credit cards are the same when assessed from this standpoint. And that is the truth. As a loan, they are all the same. The difference comes in from the way you use it, where you use it and for what you use it. For example, when one card might require that you pay the amount used in full at the end of the cycle, another may let you pay every cycle a certain degree that eventually adds up to the money you owe on the card.

creditcards-benefits

Cycles remain, by and large, the same, but the rates differ, the annual fees differ and certain charges differ; cash withdrawal fee, late fee et al. differ from bank to bank and from card issuer to card issuer. These differences aside, the type of card you pick will decide the value it offers to you. Benefits of a particular card, therefore, are purely subjective.

Also, Check:  Credit Card Eligibility Criteria

Logging on to a card issuer’s website, one can get to know all about the card’s features and special frills. It is the prudent course of action before you say yes to any card. That is one significant benefit from having everything you need to know online when shopping for a new credit card.

For instance on the Citibank Hong Kong credit card page about eight cards are shown upfront, with a description of what each card offers. A premier miles card is very different from a Citi Cash Back American Express card because one is aimed at benefiting a traveler with air miles while the other is aimed at giving more benefits for a shopper.

You can straight away pick one of the two. Cash back credit cards let you get a percentage of the spend credited back to you, and that is ideal for a shopper who saves up with each buy. But if you’re looking for some value as a traveler, your air miles program will be more useful to you than cash back.

The another benefit of going online is that comparison is also possible now. A quick compare option allows a potential card shopper, looking at cards online, to make a fundamental decision right away. Most card issuers take you through some fundamental questions before listing out all the cards in the range against some parameters like annual fee, spending periods, offers, etc.

Credit Card Benefits – The third benefit is that you can apply online. After you’ve satisfied yourself with the card’s basic features, advantages, and charges, you can from the comfort of your home make an application for the card with your relevant details. This, however, should not be construed as your eligibility for the card. Your eligibility for the card will only arrive after duly checking your important credit history and rating post the submission of information.

What Is The Eligibility To Apply For a Credit Card?

Hong Kong Credit Card – The eligibility to apply for a credit card from an established bank or a credit card company, simplistically put, is the credit worthiness of an applicant. This being fundamentally the only consideration for a credit card company or a bank to offer a credit card, is not, in truth, the only factor that decides the outcome of the application though. Pay, the nature of residency in Hong Kong, collateral, the relationship you have with your bank and its relationship with the card issuer, if the card issuer is not a bank, all come into play when applying for a credit card in Hong Kong.

creditcard-eligibility-hongkong

Here Is a Check List-( not a fool proof one though)

Income: Income, as a criterion, differs from card issuer to card issuer. For a non Hong Kong resident this again may differ. A foreigner staying in Hong Kong for sometime may become eligible on a certain income while his or her colleague with the same income may not qualify. Proof of income too varies. A pay stub may work for some banks while for others a full set of salary credits on statements is required.

Credit History: Income alone does not testify for a person’s proclivity to pay regularly, but a credit history is technical proof that someone who has taken a loan has paid back consistently or is paying back without fail month after month. The process of credit rating differs from bank to bank and from card issuer to issuer. By and large, while the rating system differs, missed payment, delayed payments, defaults etc invariably reflect poorly on your chances to get a credit card sanctioned.

Also, Check: Tips For Credit Cards Management

Residency status:  In Hong Kong there still are banks and credit card issuers that emphasize quite a bit on the residency status. Some do not ask expressly for a permanent residence status, some ask for it to be produced merely on paper and then there are others that simply don’t budge if the applicant is not a permanent resident. However, it is not uncommon for even the big established banks to settle for a Hong Kong ID card and simple proof of income that comes with a job contract.

This check list enumerates areas that one needs to consider while making an application but it is always best to reach out to a bank or card issuer to check for eligibility, with your personal details duly filled in. Since it happens a lot on case to case basis, the information you furnish in the application will be the deciding factor.

Credit Card Eligibility – Banks like Citi bank Hong Kong make the application process simpler by not only allowing one to compare cards but also apply online with relevant information. The information you furnish online will be the first eligibility check and doesn’t actually call for you to visit the bank in person. Online application is popular and is a faster way of knowing which card to go for and which card one is eligible for.

Tips for credit card management

Statistics published by the Hong Kong Monetary Authority show that there were slightly over 17.2 million credit cards in circulation at the end of Q3 2015. Such high numbers indicate that credit cards are a highly favored / sought-after financial product.

There are several reasons to this: credit cards provide you with an interest-free repayment period, you can avoid the hassles of carrying large amounts of cash, you can use them at both brick-and-mortar retailers and at online outlets, and, of course, the rewards associated with credit cards like air miles or cashback or discounts make them a very attractive option.

And, if used properly, credit cards can even help with your spending and financial planning. However, the excessive use of credit cards can easily lead to spending beyond your means, resulting into serious financial problems. The following tips will help you get started on becoming a smart credit card user:

creditcard

Understand your situation – Get yourself a credit card after you’ve taken into account your financial lifestyle, your money needs and your spending habits. Don’t plump for a credit card packed with short-term offers but which is not viable for you in the long term. For instance, if your major spends are on fuel, a petrol card would be great for you.

Learn about card features – Once you determine how you will use a credit card, it is important you understand all of a particular credit card product’s features including:

▪ Annual Percentage Rates (Interest rates applicable on a card)

▪ Annual, late, over-limit, cash withdrawal and other fees

▪ Credit limit

▪ Grace period before interest starts accruing

▪ Rewards, their applicability, conditions attached, redeeming rewards

Monitor usage – Always keep an eye on your credit utilization and make sure your spending does not go out of hand. Opt for transaction alert services on your credit card; you will get instantly notified of transactions happening on your card through email / SMS. Don’t throw away your card receipts. Verify them against your credit card statement and bring any discrepancies immediately to the notice of your card issuing bank.

Big purchases – Always think twice before making big purchases. Check whether you can actually afford such purchases given your cash flow. Sometimes issuers allow you to make payment for big purchases in monthly installments at low interest rates. Use such offers if you must make a “big ticket” purchase.

Don’t miss payments – This is a no-brainer. If keeping track of the dates is a problem, opt for automated payments. Missing payments means you will need to cough up late fees plus interest plus suffer damaged credit scores.

Don’t carry over large balances – Large balances attract large interest payments. Your trouble just keeps multiplying. Fast.

Don’t just make the minimum payment – You will land up in the situation we just outlined above.

Using multiple cards – [Kindly note: This is only for the advanced (read: disciplined) credit card user]. You’re a smart, disciplined credit card user, you settle your card bills in full, yet you feel that there is more to harvest. In that case, consider this: if you are maxing out on the rewards on your card but there is still some gas leftover in your high-spend categories then try going in for another same category-high rewards card, this time from another card issuer. You could possibly earn a little more from your unutilized high-category spends.

A credit card is a great tool to have; just make sure that you’ve planned its usage carefully to enjoy its benefits fully.