5 Charge Card Services You Can Live without

Charge card services can be added as an additional incentive for you to open a charge account with a lender. Charge accounts already offer flexible payment structures and secure purchasing, but these additional benefits can be very useful in some cases. While features like online bill pay and payment notifications are nearly essential for a good card offer, there are some services you can do without.

#1 Platinum, Gold and Privileged Cards

A number of charge card companies attempt to entice borrowers with appeals to their ego. You will receive an offer to be a member of a privileged card class if you simply make at least a certain amount of charges each month on the card. Avoid these offers; while they feel good on your ego, you will end up being coerced into unnecessary spending each month.

#2 Cash Back on Purchases

There are a lot of potential incentives a charge card can give you in return for each purchase, and cash back sounds like a great option. While it doesn't hurt to get a few extra dollars, that is likely all this will amount to in a given month. The cash back rates tend to be so low you will end up with a measly portion in return.

#3 Discounts at Retailers

Points and rewards on a charge card should be incorporated in some way. However, if you have to shop at a specific location in order to see the rewards and discounts, then the benefit you get from the incentive will be cut back significantly. Only be enticed by this option if the retail partnership is one you use with a high degree of regularity. This is typically most appealing for small businesses who have a more predictable spending pattern than many households do.

#4 Deferment Options

Some charge card memberships promise a suspension of all payments for a year or more. This is similar to a loan deferment or a grace period. While you may not have to make a payment for awhile, this offer does not in any way mean your payments will not accumulate or your interest will not rack up. You may find yourself with a huge bill at the end of the grace period, and this can often lead to default on the loan. It is better to pay the balances on your charge card as they come due than to put them off to a later date.

#5 Mobile Access

Smart phone users are always enticed by applications to view their charge card accounts online. While this is a fun feature, it provides very little real benefit to a user. You should be able to know your account balances well enough to avoid checking them on your phone during the course of the day. Borrowers who have to use this option perhaps are not as vigilant with checking their statements and receipts each month. While online bill pay and account monitoring is an essential feature, mobile monitoring through a smart phone is much less necessary.


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