It can be very easy to forget the benefits of credit cards among all the negative reports that credit cards receive. When people choose the right credit card(s) to use; and then use them responsibly however, credit cards can actually give you little bonuses that make them better than cash. Responsible credit card use means you don’t charge more than you can afford, you pay your balances off in full each month instead of carrying a balance from one month to the next, and the card offers advantages over cash such as cash back, rewards, or other card features that you probably forgot you even have!
Take a closer look at your credit card agreement to find out what other features your credit card might offer, including things like:
Proof of Purchase (Extra Receipt): Returning items without receipts often means you can’t get your money back. It’s hard to keep track of those little white slips of paper, though! If you buy items with a credit card, your credit card statement will show the itemized purchases and you should be able to use that as proof of purchase. It includes the store name, and sometimes a brief description of the item, which should be sufficient to the store clerk when you need to exchange or return an item. If not – you can always see if your card offers purchase protection coverage – and let the credit card company go after the retailer on your behalf!
Rental Car Insurance Coverage: When you rent a car, you’ll be asked if you need car rental insurance coverage. But what many people forget is that if they pay for the rental with their credit card, often times the credit card includes complimentary insurance coverage and buying it from the rental company is a waste of your money.
An Extended Warranty: Many credit cards will extend the standard warranty for 90 days or 1 year if you buy using a credit card.
Don’t forget about these little perks for using credit cards, they can come in handy!