Everyone knows that excessive credit card use can get you in trouble, but there credit card benefits you may not know about.
But, if you have no trouble whatsoever with managing your finances, credit cards are something you should consider. They help build your credit to help qualify you for lower interest rates on auto and home loans along with a whole host of other benefits.
If you’re spending the money anyway, why not get some extra protection and added benefits through using a credit card? I’m not being paid to say this. I just think that there are some real benefits to be had from credit cards as long as you use them responsibly.
Here are some super useful credit card benefits that you may not know about. Most people are aware of cash back credit cards so I do not cover that topic here. Individual cards may vary but these are the benefits on the cards I personally use (trust me, I don’t have any super duper fancy cards).
Zero Liability Protection
You won’t be held responsible for unauthorized charges made with your card or account information.
Purchases made on credit cards are protected for 120 days against damage or theft up to $500 per claim and up to $50,000 per account.
If a card purchase you made in the U.S. is advertised for less in print or online within 90 days, you can be reimbursed the difference up to $500 per item, $2,500 per year.
Purchases made on credit cards come with warranties that match the terms of the manufacturer or the store for a maximum of 12 months on most items. This allows you to decline warranties that stores often try to make you purchase.
Auto Rental Collision Damage Waiver
Don’t bother with car rental company’s collision insurance. They’ll try hard to get you to buy it but just politely decline. Instead, charge the entire rental cost to your credit card. Coverage is provided for theft and collision damage for most cars in the U.S. and abroad. In the U.S., coverage is secondary to your personal car insurance.
Trip Cancellation & Trip Interruption Coverage
You may recover non-refundable expenses if your trip is canceled or interrupted for reasons like sickness, injury or severe weather.
Lost Luggage Coverage
Many credit card companies will provide coverage for lost, stolen, or damaged luggage checked with an airline carrier.
It’s incredible that so many of these benefits which you normally have to pay for are free through the use of a credit card. If you travel often, the benefits pertaining to travel can be particularly appealing.
Also, there are so many credit cards these days that offer cash back on a portion of your purchases. If you strictly use cash, it’s like you’re turning away free money.
However, like I said earlier, you should only use credit cards if you are capable of paying off your balance in full every month. No benefit is worth it if you’re paying tons of money in interest!!!
If you’re financially responsible, using credit cards can offer you great benefits. Do your research and see which cards offer the protection you’re looking for.