This post, Benefits Of A Credit Card, contains referral links but it is not sponsored by a credit card company.
Some people do not like to have credit cards. It is easy to get into debt. We have been in debt and it’s a lot of to get out of it. The stress of having debt isn’t worth the benefits I have listed below.
We have always had good credit. We knew that it was crucial to getting a good interest rate when buying a house or a car. On the flip side, if you neglect your debt you can seriously hurt your credit and things will cost you more because your interest rates are going to be higher.
So please, if you have a credit card, be responsible and don’t let the balances get out of hand.
Now that we got that out of the way I want to talk to you about how my credit cards have actually saved me money. Here’s a few examples that I have come across just this week.
My Discover Card has an extended warranty coverage. They give me an extra year warranty once the manufacturer’s warranty is expired. The is a free benefit and it can really save you money. Here’s my real life example – last year my son got an Xbox One. He had saved up his money and we helped him get it for his birthday. The controller isn’t working right so I chatted with Xbox support and it only has a 3 month warranty. The controllers are not cheap – they cost around $60!
I remembered that I purchased it with my Discover Card and they had an extended warranty. So I called them and started a claim. I will be refunded the cost of the controller. Savings = $60
Sign up for a Discover Card and get a $50 statement credit.
We also have an American Express. When I log into my account they have special offers. We are planning a Spring Break trip so I was excited to see that there was an offer for Hilton Hotels. When I use my American Express card to pay for my hotel, they will credit my card $35. All I had to do is clip an offer and pay for my hotel. Savings = $35
This card also has a lot of other offers like $10 back when you spend $25 or more at certain restaurants. When we are on vacation I like to check these offers to see if I can save a little more money.
I also like this card because if I have points available I can use them on Amazon.com and get really good coupons. (Just recently I could have bought a Kindle for $20 (instead of $70!).
Delta American Express – This is a new card for us. When we moved to Kentucky we learned that Delta is the best option from our airport. When my husband purchases his trip with this card he can get his first piece of luggage for free. He will also get double miles on his purchase and his miles never expire.
Plus he gets priority boarding and saves 20% on the food he buys on the airplane with this card. I am sure there are more perks to this card but it’s new to us. Just this month he has saved $50 on luggage fees. Savings = $50 (plus miles for future vacations).
Apply for an American Express Card and you can earn 40,000 Bonus Miles after you use your new Card to make $1,000 in purchases within the first 3 months!
With an American Express Card, you will also get complimentary ShopRunner membership to get free 2-day shipping.
There are many cards with many different options. I usually pay the balance within a few days of making the purchase. One of the main reasons I prefer to use a credit card instead of a debit card is the protection.
I have had fraud charges in the past and I would much rather it happen to my available credit instead of my available cash balance. It can take the banks a few days to get your money back into your checking account and it’s hard to live without that money you have planned to have as part of your budget.
Credit cards also offer price protection, car insurance, and other benefits. Find the card that works for you and your lifestyle. We saved $145 just this week with the benefits we had available from our credit cards.
Again, these benefits are not as useful if you don’t pay the balance and incur fees – so be smart and use the benefits to make your dollars stretch further!
What’s your favorite benefit of a credit card?