Today’s society loves using credit cards for many reasons. They are convenient, fast to use,
accepted just about everywhere, and for better or for worse, allow you to make purchases
without needing to have the cash in your bank account beforehand.
Yes indeed, credit cards are an integral part of today’s economy. However, despite their
globally widespread use, many people are not actually taking advantage of all of the
benefits the credit cards in their wallets possess.
Let’s take a look at some ways you can make the most of your credit card usage:
1. Protection from Fraudulent Purchases and Identity Theft
One of the most important, yet often overlooked, benefits of using a credit card for purchases
(particularly online) is the protection they provide. For example, if you are buying something
online and the seller fails to come through with the product, you have a better chance of
disputing the transaction and being refunded your money if you had completed the purchase using
a credit card instead of your bank debit card.
2. Take Advantage of Cash Back / Rewards Benefits
We as consumers love the idea/quick psychological win of being rewarded for making purchases.
Therefore, cash back and rewards credit cards are quite popular.
However, simply having a rewards card is not enough. You have to make sure to
1) Activate your rewards points on a periodic basis and
2) Not forget to use them before they expire, if applicable.
3. Utilize Insurance Provided by Credit Card Purchasing
Another commonly overlooked benefit of credit cards is that they often offer various types of
insurance. For example, many credit cards provide insurance on rental cars paid for by the card
that will pay out in the event of an accident. Other types of insurance included when making credit
card purchases are baggage delay insurance, hotel/motel burglary insurance, and trip cancellation
insurance. Make sure to check out what specific benefits your card offers!
4. Using the Correct Card for Specific Purchases
Our last “stop” on our tour of ways to make the most of your credit card use relates to
the majority of us who carry multiple credit cards in our wallets. Our last tip involves
making sure to use the correct card for the most appropriate purchase. For example, if
only one of your two credit cards offers airline points, don’t leave that card at
home when you book your trip! In addition, if one of your cards offers more cash back
for purchases at grocery stores, make sure to always use that card when you go shopping.
These steps are necessary to protect your credit card and you can find more such tips
only on http://www.freemoneywisdom.com