Can Credit Cards Save You Money?
This might seem like a strange question, given the current economic climate. However, as strange as it might seem, there are circumstances in which credit cards can actually save you some money. It is difficult to get ahead financially these days without a credit card, so if you are going to have one anyway, it is best to choose the best credit card for your financial situation with the added perk of putting some money back in your pocket.
First of all, it is imperative you choose the right credit card for you. Everyone’s situation is different, so it is really up to you to decide what’s the best choice. If you travel a lot, a credit card which offers air miles, gasoline rebates or discounts on hotel stays might be perfect for you over a card that offers merchandise or even cash back. Whichever card you choose, keep an eye on the interest rate. Typically, credit cards with rewards have a higher interest rate which may not make the rewards worth the cost.
Other ways credit cards can save you money may be perks you don’t recognize. Comb through your credit card agreement and determine all the options offered. Here are some of the most common:
- Price protection: If you find the same item you’ve just purchased somewhere else for substantially less, your credit card company may have the option of reimbursing you for the difference with proof of purchase.
- Return guarantee: It might be past the original store’s return policy time limit, but if you purchase something and decide it’s not what you want or need, the credit card company could take it back with proof of purchase and reimburse you.
- Extended warranty: Any time you buy a big-ticket item, the salespeople come at you with the extended warranty and horror stories of what could happen if you don’t buy it. Well, if you use your credit card, you may not have to buy an extended warranty because your credit card offers it at no additional fee.
- Travel advantages: From insurance to travel assistance, from trip cancellation coverage to translator services, your credit card could have your back. Many times credit cards provide trip coverage of some kind that is good to know before you step out of the house on holiday.
Most people don’t realize these perks are contained within their agreement, and therefore don’t take advantage of them. This partial listing can save you a lot of money, so be sure to take a good look at your credit card agreement to see what gems could be lurking in all that fine print.
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If only to build credit, I think credit cards are a must. I agree with you – don’t cancel all your credit cards. Make them work for you.