4 Tips for Getting the Most from Your Credit Card
It’s important to know your credit card, and what it can do for you. You should think of your credit card as just another form of currency that you now have, which will be used for paying for goods and services. Read the following list of tips to get the most from your credit card-4 ways you can make better use out of this powerful spending tool!
Choosing the Right Card
If you want to make the best use of your credit card, you must choose a good one. The right card will reflect your lifestyle and growing needs. Many credit cards offer cash back, free travel, low-interest rates, and other addons. You should also keep an eye out for addons like air miles and reward programs, as they can help in saving on various expenses such as your holiday or upcoming purchase.
You should also check if there is an annual fee attached to the card. This fee is paid in exchange for the benefits you receive from your card. If you understand what you are getting from this fee, then it may not be an issue. In most cases, credit cards with annual fees offer more easily redeemable rewards and cash-back amounts.
This also applies to credit cards that allow you to withdraw cash at an ATM. These types of cards usually attract higher annual fees but can be very useful in emergencies. If you need quick access to cash, then this type of card will be more beneficial.
Credit Cards Come with Insurance Coverage
You can never predict when an accident might happen, but if you’re a credit cardholder, then there’s no need to worry because many credit cards come with insurance coverage. Here are some of the benefits that you can avail yourself from them:
- Auto rental coverage – Theft and collision damage to a rented car will be covered by your card’s benefits. You should keep in mind that there may be certain conditions such as having no other options except for renting a car for this benefit to kick in.
- Emergency medical and dental care – You can be reimbursed for the cost of medevac if you are traveling out of your home country, as well as out-patient treatments, surgeries, x-rays, lab tests, ambulance fees, hospital stays, home nursing services, and even funeral expenses.
- Flight accident insurance – If you have purchased a plane ticket using your card, you may be able to receive reimbursement for the cost of the ticket if a flight is delayed, canceled, or overbooked.
- Lost baggage insurance – Cardholders are reimbursed for lost or damaged belongings while traveling by plane, train, boat, or car.
Transfer Your Balance to Another Card
Your credit card may offer a low-interest rate on the balance you carry, but this is only valid for purchases. It means that if you make additional charges with your card or try to pay off your purchases by taking another extension, then they will most likely charge you higher rates of interest. To avoid this, check your card offers an introductory 0% APR (annual percentage rate) balance transfer offer. This offer is usually valid for a specific amount of time so take advantage of it while you can.
Also, you can consider reallocating your expenses by transferring expensive balances to cards that offer the same 0% APR offers. This will allow you to save more money on interest charges.
Make Your Card Work for You
You can maximize the benefits of your credit card by using it frequently. The more you use your card, the better your credit score becomes. Credit scores are used to determine a person’s eligibility for loans and other future financial transactions. The best thing about this is that if you manage to keep a good credit history by making your payments on time, then you can even apply for larger loans in the future (e.g. home mortgage) at more affordable rates.
Should you decide to travel with your credit card, then be sure that you are using them when staying abroad. This will maximize the benefits of your cards like free foreign transactions and currency conversion.
Also, if you’re planning to pay for your purchase using your card, then opt for credit cards that offer rewards like cash back or reward points. You can use these reward points on future purchases or even redeem them as statement credits.
There are many benefits to using a credit card, and by following the tips provided, you can make sure that you’re getting the most out of your card. Use your card for everyday expenses, take advantage of balance transfer offers, and use it frequently when traveling abroad. With these simple steps, you’ll be able to make the most out of your powerful spending tool!