Pages Navigation Menu

Everything Personal Finance

How to take advantage of your credit cards

How to take advantage of your credit cards

If you are a financially disciplined and responsible, you can take advantage of credit cards in a way that you could end up earning money by using your credit card each year.

You are probably aware of credit card reward programs, and how you can earn reward points by using your credit card, but there are a lot more other benefits you might not be aware of aside from reward points.

Signup bonuses

Many credit card companies offer bonuses for signing up. These bonuses can take the form of reward points, airpoints etc. That being said, not all bonuses offer good value, so make sure you read the terms and conditions carefully before agreeing to anything. Most signup bonuses entail certain requirements, so make sure they align with your habits.

Cashback programs

According to Credit Card NZ, a leading credit card comparison website in New Zealand, Cashback credit cards are a form of rewards program but instead of giving you reward points for spending on your card, Cashback programs give back some of the money you have spent. This may sound too good to be true, but it’s not! Some credit cards offer as much as 5% cashback on your purchases, but make sure you read the terms and conditions carefully.
Complimentary travel insurance

Credit cards often offer a lot of complimentary consumer protections, such as rental car insurance, purchase protection insurance, extended warranty insurance and also travel insurance. These can save you a lot of money and it can also provide a lot of peace of mind. If you’re a frequent traveler, you can look for a credit card that offers travel insurance. They often offer the coverage you need, so make sure you look into it.
Price protection and purchase protection insurance

Another popular credit card feature is price protection and purchase protection insurance. Price protection insurance will pay the difference of an item you purchased if said item has dropped in price. Of course, you’ll need to show proof, but the difference will be reimbursed to your credit card.

On the other hand, purchase protection insurance will protect the things you buy from theft or accidental damage for up to six months after the purchase. Terms and conditions apply, so make sure you read everything carefully.

Fraud protection

Fraud protection is probably one of the best benefits that credit cards can offer because it provides users with peace of mind. Fraud protection gives you the certainty that your money and your information will be safe. They keep track of your transactions and let you know if anything’s amiss so you can deal with the problem as soon as possible.

Convenient and secure online shopping

Credit cards make online shopping a lot easier and secure. As mentioned above, credit cards come with fraud protection and they also contain different layers of security to ensure that you won’t lose your money. Of course, you’ll still have to choose your online shopping sites carefully and make sure they’re trustworthy.

Credit cards work in any currency

For frequent travelers, this is a great benefit because you’ll be able to use your credit card in a foreign country without having to worry about anything. You’ll be charged a conversion fee but it’s nothing major. Some credit card companies don’t even charge any conversion fees depending on the stores and countries, so make sure you’re fully informed of terms and conditions.
Near universal acceptance

This is another great feature for frequent travelers! Credit cards make it very safe for you to purchase overseas. As opposed to debit cards, which are not universally accepted, credit cards have near-universal acceptance. Just make sure you also bring a bit of cash with you for emergencies and make sure to check if your card will work wherever you’re going.

Improve your credit score

Using your credit card well will allow you to improve and build your credit history and score. Just make sure you pay in full every month and keep your spending measured. By improving your credit score, your application for loans in the future will be less stressful and it will be more likely for you to get approved.

Interest-free days

Last but not least, interest-free days are also a major credit card benefit. Most credit card companies offer around 55 interest-free days a year, and some of them even offer up to 62 interest-free days. During this period, they won’t charge you any interest on your purchases so you can save quite a bit of money. Of course, you’ll need to pay the previous and the current month statement to be able to benefit from this. That’s why it’s so important to keep your payments up to date.
Rewards programs

Of course we can’t conclude without mentioning reward programs. Credit card reward programs basically reward you for spending money on your credit card.

You can take advantage rewards programs by buying all your grocesseries and other needs on your credit card and paying off your balance each month.

Some rewards credit cards allow you to pay for the annual fee of the credit card with the points you earn, so you might not even have to pay the annual fee out of you pocket.