Advantages and Disadvantages of LIC Credit Card
Now LIC doesn’t just provide life insurance coverage; you can apply for LIC Credit Cards and enjoy many benefits. Consumers can now purchase from a range of LIC Credit Cards and win rewards on travel, shopping, and filing LIC premium to get guaranteed rewards. Life Insurance Corporation has recently introduced Platinum, Gold, and Titanium LIC Credit cards for customers. Many users consider it’s more convenient to obtain a credit card for free. But some users are wary of the hidden Terms and Conditions. The Advantages and Disadvantages of LIC Credit Card bring the pros and cons to light.
The LIC credit card is for those with a life insurance policy with the Life Insurance Corporation of India. The card offers rewards points that can be redeemed into cash or used for online shopping from partnered merchants. You can get 1% waiver on fuel surcharge as well. Top Credit Card from LIC are free to obtain and use for various purposes. Now you can withdraw cash and pay your premium with ease using the LIC Credit Cards. But, before you apply for a card type, do heed to the Pros and Cons of LIC Credit Card.
What are the advantages of LIC Credit Card?
The Life Insurance Corporation decided to create their own card that people can use for everyday needs, such as shopping or paying bills. These Advantages of LIC Credit Card will attract most policy-holders in nearing days.
1. Zero Joining and Annual Fees
If you are eligible Indian or NRI, you can apply for any credit card type depending on your annual income and budgetary needs. You can have a world of premium and unmatched benefits of LIC Credit Card without any joining fee. Also, LIC offers up to 50 days free credit period.
2. Great Rewards
LIC offers a variety of rewards for you to choose from. There are lower-tier and higher-tier cards that provide different benefits. You can enjoy travel, shopping, and other rewards by applying for one of the LIC Credit Cards mentioned above. This is a great way to get free cashback for using your card every day.
LIC rewards its cardholders under the LIC Pluspoint Rewards program for rupee spent. For example, there is one Reward Point per 100 across all categories, 2 RPs per 100 LIC Premium payments & transactions in foreign currency, respectively.
3. Cash Limit
One of the Advantages of an LIC Credit Card is the Cash Limit. With this benefit, the company has fulfilled the needs of customers and made them feel more secure. This shifts the responsibility of cardholders to pay for any purchases which exceed the cash limit. If there are any upcoming charges, they will come in a negative balance, and customers have to make payment by a particular bill date.
4. One of the notable advantages of LIC Credit Card is Insurance Cover
The LIC Credit Card Insurance Cover includes all the payments associated with the card under the insurance plan. With this benefit, you can get cheaper and better coverage than what other financial institutions offer. LIC offers a personal accident insurance cover of Rs. 50,000 up to 60 days as well as Credit Shield of up to Rs. 50,000 in case of permanent disability.
5. Best Customer Support
You can check for your LIC Credit Card application by calling the Customer care team toll-free number 1800 22 6606 for further assistance. You just have to follow the IVR instructions and provide your application number, and the CSR will do the rest. If everything goes in order, your LIC credit card will reach you from 21 days of application.
You can dial LIC Credit Card is its 24-hour customer service availability which makes solving any problems or questions much easier than it might be otherwise if one were only able to contact customer service during business hours via phone call.
What are the Disadvantages of LIC Credit Card?
Apart from the clear and present benefits, most customers will agree that there may be some disadvantages of LIC Credit Card. Some of them are listed below for your further knowledge.
1. High Interest Rate
The interest rate is one of the biggest problems for people who have a low credit rating. It's high enough to make their payments quickly go out of control with just one slip up. This should not be an issue if you pay your bills on time and in full every month. However, if you need help managing money or have had trouble making regular payments in the past, consider another card as there are better options available.
2. Bad Credit score
One of the disadvantages of LIC Credit Card is that it might not be suitable for people with a bad credit score. LIC Credit Card requires an annual income of Rs. 1,80,000/- (LIC Gold Credit Card) or more and at least two years’ salary in hand to acquire the Platinum card.
In case you have bad credit in the past, it may lead to further problems. Also, that's up to the bank to decide whether to approve your LIC Credit Card Application or not.
3. Sturdy Application Process
There are lists of documents required for LIC Credit Cards followed by a lengthy application process. But, provided every detail is cross-checked by the bank, it's the only authority to decide whether to approve your application or decline it.
If you fail to present your PAN Card/ Form 60, Residence proof, Identity proof, Income Proof, latest payment slips/IT return copy, you will be ineligible. Although the process takes a maximum of 21 days to complete, any uncertainty may also lead to delays or application rejection.
4. Concerning Disadvantages of LIC Credit Card are Over Limit Fees
The Over Limit fees can be surprisingly high for Gold and Platinum Cardholders that can be a costly affair if you are prone to using the balance on your card. The annual fee can also add up and make it difficult for you to afford this type of credit card. You’ll be charged at the rate of 3% of the amount for every time you surpass the preferred purchase limit (minimum 500 Rs/-).
5. Late payment Fees
One of the disadvantages of LIC Credit Card is the late payment fees which keep on rising with respect to the outstanding balance. The late payment fee varies depending on when the account is paid.
For example, if you make your payment within 72 hours, you will not be charged any fees. But if you miss this window, a late fee will be charged for every additional day that is not paid. The minimum amount you may have to pay is Rs.100/- ( Rs. 101 to Rs. 300), while the maximum amount you are obligated to pay is Rs. 700/-(Rs. 10,001 and above).
Conclusion on Pros and Cons of LIC Credit Card
There's a world of finance out there, and it is rapidly moving towards digitization. LIC has just stepped in to impress its existing customers with a strategy to add many more. However tempting these services may seem to you, evaluating the pros and cons of LIC Credit cards is a must before deciding.