How to Make Credit Card Terms and Benefits Work for You

There are many credit card terms and benefits out there that can benefit you in different ways. On the subject of credit cards, most people think that they are risky to their financial future. With the interest rates that they charge after the promotional period, they can be dangerous. However, financially savvy consumers use the credit card benefits to their advantages. Here are a few things that the credit card companies offer that can work to your advantage if you do it correctly.

Points

One of the biggest advantages to owning a credit card is the points that you accumulate. There are many points programs out there that will let you accumulate some major rewards as you spend. For example, for each dollar that you spend, you might receive one point that you can use on travel or any number of things. Many people use this type of program to fund flight tickets or an entire vacation.

This is a great strategy to use as long as you are buying things that you would buy anyway. Where people get in trouble is when they buy things that they don't really need just to get the points. When done correctly, a point system can help fund a lot of the things that you need.

Purchase Protection

Another big benefit of owning a credit card is the purchase protection that comes with it. The credit card company will monitor all of your purchases. This can benefit you in a number of different ways. If you lose your card and someone else finds it, you will not be responsible for the purchases made. You can simply call the credit card company and tell them that you lost your card. They will protect your credit limit from anyone trying to make purchases on it.

This also can guarantee your satisfaction with big purchases. Let's say that you walk into a retail establishment and are talked into buying something large on your credit card. You did not yet take delivery of the item and decided that you made a mistake. When you buy it on a credit card, you can call the card and dispute the transaction. Tell them that you want to cancel the purchase and you can get out of paying for it.

Balance Transfers

Balance transfers are something that many financially savvy consumers use to benefit their financial situation. With a balance transfer, you can transfer balances that you are paying high interest rates on to a card with a lower interest rate. When you get a new credit card, many times they will give you a zero percent introductory rate for a certain period of time. During that time, anything that you put on the card will not be charged interest. Therefore, if you have a few other credit cards with high interest rates, you can lower your monthly payments by transferring the balances to a new card. You can pay off the money faster and save on interest charges.


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