Credit cards can be a valuable tool if used in the correct way, but unfortunately many times using a credit card all it does is cause a person to go in debt. One of the reasons that it happens is that even though credit cards do have a limit many people will just spend because they have the “money” to spend and they do not think about having to pay for it later. If you can avoid the debt trap, there are some rewards that you can reap for using credit cards. Here are how to get the most out of your credit card’s features.
If you are making a major purchase using your credit card you should consider getting a price protection program even if they might cost a small fee. What this program does is that if you would find a lower price later you would get the difference back on your credit card. Most of the time it is good for up ninety days after you made the purchase.
If you have a rewards card make sure that you do not carry a balance on it because you do not want any fees or interest payments to cancel out any type of gains or rewards that you may be entitled to by collecting the right number of points. All you have to do is make sure that you pay off the entire balance every month to avoid any type of interest payments.
Make sure that you are aware of any balance transfer fees because there are some credit cards that offer a zero percent introductory interest rate on any balances that are transferred from other cards. This can be to your advantage in paying down what you owe if the zero percent period is good for more than six months. Unfortunately there is usually a catch, which is credit cards may charge a one time fee of between two and five percent of the amounts that you are transferring which can add up to a lot of money if you are transferring a large amount of money.
When you signing up for a credit card look for the hidden perks such as one credit card offers their customer road side assistance. Sometimes these perks are advertised and other times they are not. Finding out what the perks are can help you choose which card you sign up for.
Make sure before you pay for anything extra that it is worth the extra fee.
If you are a frequent traveler, whether for pleasure or business, you want to make sure that you are getting the right travel rewards credit card. When you do this you can help with discounting your travel expenses. In order to do this, here are some things that you should check out before choosing a travel rewards credit card.
One thing that you need to do is check to see what the exchange rate for miles earned is which could be a mile for one dollar or two or more miles for each dollar spent. Make sure that the exchange rate is suitable. You also need to make sure how many miles you have to travel before you can redeem them for free travel. Some have a limit of fifteen thousand miles before you get two miles for every dollar spent while others may have a limit set at just five thousand miles.
You should check to see if there are any black out dates or seat restrictions when you use your free travel miles. If there is seat restriction this just means that you do not get to sit in certain parts of the airplane when you are traveling free. In regard to black out dates, this means that there are certain days that you cannot travel for free.
You also want to make sure that it will be easy to redeem your miles because there are companies that will not let you redeem the miles until they have accumulated over a certain period of time.
Most of the travel reward cards with good benefits are for consumers that have good or excellent credit. If you do not have this type of credit, the credit card company may compensate for this with an annual fee or a higher interest rate.
If you know of others who have a travel reward credit card, ask them which card they use and what they like about the card.
These are just some of the ways to make sure that you are getting a great travel rewards credit card.