Why Credit Cards Are Good
I know this may be opposite of what you expected to hear from someone who loves saving money and not paying interest on anything but I LOVE my credit card! There are several reasons why credit cards are good such as convenience of use, not having to carry around cash and of course being able to shop online which I love to do, but there are a lot more important reasons why credit cards are good so keep reading.
I created a list of the top 6 reasons why credit cards are good, you can check it out below.
Credit Card Purchase Protection
Purchase protection can be used in a variety of situations, but what is covered varies by credit card and by the individual case. Getting coverage through purchase protection typically involves calling the card issuer, filling out a claim form and submitting it with documentation of the loss. You will want to check with your credit card issuer for more information on what your card offers for free (they may have a purchased plan, but the free one usually covers everything you need).
If you have a card that offers purchase protection, here are some tips on how to make the most of the benefit:
• Learn your coverage amounts. The per-incident dollar limit can vary widely from credit card — in fact, it could be anywhere from $500 to $10,000, depending on the card, so check with your card issuer.
• Always use your card for big purchases. It’s a good idea to use a card with purchase protection to buy any valuable item that might get stolen or damaged.
• Make sure you document your loss. Credit card issuers typically ask for proof of the loss. For example, photos of a broken item or a police report (some cards require you to file one within 48 hours) if an item is stolen.
• Don’t wait too long. Call your credit card company as soon as possible after a loss.
A lot of credit cards offer extended warranties on top of what your purchase may already give you. This is one I never thought about and wished I had known about earlier! Check with your credit card company because you may not need that extended service or warranty plan that you are being offered at the store. This eliminates having to buy those “extended warranties” you get offered at the register.
For example, my Discover Card extends the terms of an existing eligible warranty for up to 1 additional year on warranties of 36 months or less. That is why Discover Card is one of my favorite credit cards by far as well as its other features.
Each credit card is different so make sure you know your cards benefits in full before you make a purchase. If your looking for a good credit card I recommend Discover. Use my referral link and get a $50 CashBack Bonus: Become a Discover Cardmember now, and you’ll get $50 Cashback Bonus with your first purchase within 3 months!
Become a Discover Cardmember and you'll get $50 Cashback Bonus with your 1st purchase within 3 months. https://t.co/fWGd36I2Ze
— ESAVINGSBLOG (@esavingsblog) September 23, 2016
Auto Rental Insurance
Did you know that your credit card could cover your car rental insurance? Credit card car rental insurance is always considered secondary coverage – it covers you if you don’t have other car insurance or if you do not purchase insurance from the rental company. A very important thing to know is that with any credit card rental insurance, buying the coverage from the rental company will invalidate your credit card insurance coverage. You can’t get coverage from both sources at once. However, if your personal car insurance has a deductible, then your credit card may cover that amount.
Each credit card has its own general eligibility rules. Keep in mind that as of the last time I checked, none of the four major credit card issuers will provide coverage on the rental of exotic, expensive or antique cars; vans; trucks; pickups; motorcycles; or recreational and off-road vehicles.
To avoid making a costly mistake when you rent a car, research your existing coverage before taking a vacation. Call your car insurance agent and the credit card issuer of the card you plan to use. Ask which types of coverage you have and what the limitations are. Benefits can vary among cards from the same issuer, so inquire about your specific card.
I have to admit that credit card rewards are probably the biggest reason I use my credit card on a monthly basis. I choose cards with rewards that are right for me such as cashback or the ability to just apply the reward amount right to my bill. If you travel a lot, a travel rewards card might be for you.
I charge a few of my monthly bills right to my credit card on autopilot so that I earn rewards on bills that I am going to pay regardless. I pay the credit card bill in full before it is due to avoid interest charges, so I am getting rewarded for paying my bills. Something that my bank will not do for me :-).
Free Credit Score
While not all credit cards offer this feature, two of my credit cards give me free credit scores which is an awesome benefit to have. If your card issuer does not offer a free credit score, then you can get one free from Discover card even if you are not a card member! Get your free score here: https://www.discover.com/free-credit-score/. Just another reason to love Discover card!
Credit cards build credit. By using a credit card and paying it off every single month, you are showing that you are responsible and credit worthy. The more credit you build, the higher credit score you will get and the lower interest rates you will be offered. Using credit cards wisely was one of the reasons I was able to get a perfect credit score.
— ESAVINGSBLOG (@esavingsblog) September 23, 2016
Do you always use your credit card for purchases? Have you used any of the benefits mentioned above? Are there other reasons why you think credit cards are good (or bad)? Please leave a comment I would love to hear about it.