Credit cards come in handy, most of us have them and use them. Yet did you know you can maximize their value when using them with a few simple tricks? There are some tricks that can help you make the most out of your credit card use and if you intend on using your credit cards anyway you may as well use them smartly. I will out line my top credit card tips below.
Maximizing your rewards:
No matter what interests you have there is a credit card that can help further your cause, weather it be travel rewards, airline miles, cash back, free merchandise or entertainment there is a credit card offering that. If you use your credit card every month yet pay the balance off in full or nearly in full each and every month a rewards credit card is the way to go. Simply pick one or two credit cards that offer a reward you are interested in and charge to the credit card your purchases. Near the end of the grace period simply pay off the balance. Why pay off the balance each and every month in full? If you do not then the interest rates might cancel out any benefit from the rewards. The key to racking up the most rewards as possible is to use your credit card often but pay off that balance in full each and every month and avoiding the temptation to over spend.
Use credit cards to buy almost everything
This tip ONLY works for those who do and can pay off the balance every month. Doing this allows you rack up rewards points and also offers you purchase protections that only credit cards offer. Many credit cards protect you in the event of a dispute between you and the merchant, for example if the merchant refuses to accept an item return on an item you used a debit card with, that might not have happened had you used a credit card. When you use a credit card the merchants are often required by the credit card company to accept the items return within a reasonable period of time between 30 and 90 days from the purchase date depending on which credit card you are using.
Did you know that simply by using your credit card at the car rental counter you can avoid those pricey add on insurances they try and sell you? When you use your credit card at the car rental agency you will have a CDW waiver benefit (Collision Damage Waiver) if you choose the right credit card, as many credit cards today have this perk. If you travel often it is wise to look for a good rewards card that offers free CDW coverage. Did you know that if you opt for the rental agencies over prices insurance that in many cases that voids out the free insurance your credit card offers? Most of these cards only offer secondary coverage, in which case you may still need a primary policy, but the collision damage secondary policy can still save you money. Some credit cards offer both primary and secondary coverage such as Example Six Premium Coverage which any American express customer can opt in for a flat fee of only $24.95 per rental period, which offers up to $100,000 of primary coverage for damage or theft and accidental death or dismemberment coverage or up to $250,000 for California residents. You just need to select the right credit card and go through the credit cards terms and conditions as well as use the credit card in question to pay for the rental.