Is it good to use a credit card? What are the advantages of using them as a payment method? How can I benefit from them? Do I need it? – these are just some of the questions that come up to a mind of a person who thinks about picking that first credit card from the bank.
Let’s take a look at some of the benefits of having a credit card.
1. Discounts on your first day of purchase
Most of the cards offer from 10% up to 20% the first time you use it (source) (which can be combined with current discounts), or your purchases converted to points. Of course, before you want to apply it, you should consult the participating departments.
2. Additional product warranties
Some card issuers automatically extend the manufacturer’s warranties, usually up to a year, which is great for expensive items that would be expensive to replace. But it is also usually applied to cheaper objects that perhaps ignore that they come with a guarantee, such as lenses, coffee makers and suitcases. You must use the card to pay the full price of the purchase, so do not divide the transaction; Do not use a credit card and a gift card to cancel the amount.
3. Coverage for damaged products
You are attached to your phone at all times, until it flies out of your pocket during a Zumba class or a roller coaster ride. A card with coverage for theft, damage and loss will offer reimbursement if the item you bought with the card is lost, accidentally damaged or stolen within a set period of time, usually 90 days. However, some cards will limit the number of times you can use this benefit in a certain period of time.
4. Protection for you and your family
Although they have a cost, most department stores allow you to purchase wellness programs (including medical, dental, ambulance, roadside assistance), and life or car insurance. Among the advantages are the accessible costs and the charge to your card.
5. Travel insurance
Cancellation of a trip covers losses if you have to cancel plans, perhaps because of illness or injury. Check the regulation of the card issuer regarding what does not qualify and how much will be recovered.
6. Car rental coverage
If you use your card to make a rental, some issuers will cover any loss of the vehicle, up to a certain limit. If you already have collision coverage, the card will cover the deductible. Just remember to reject the crash damage liability exemption.
7. Promotions always available
Both point programs and electronic purse, with which you can buy at the store, as discounts at their restaurants, exclusive raffles or gifts for your birthday. In addition, although their night sales are open to the public, having the credit card associated with this chain, gives you unique advantages such as discounts or months without interest.
Now that you know the less widespread advantages of these cards, do not hesitate to take advantage of them. Although if you are looking for one with which in addition to obtaining these benefits, you can buy in other establishments, some department stores offer a VISA card, which although it charges annuity, is lower than traditional credit cards.