How To Make Your Credit Card Work For You
A plastic card which you can buy stuff with, sounds good right? What if I told you there were more benefits to owning a credit card than you think? Credit cards are not just a convenient way of making payments; they can be so much more if you know the extra details. From reward points to grace periods, here is how you can make the most out of your card.
Using a grace period
Most credit card issuers offer something called a grace period, which sounds quite heavenly. It is a certain amount of time in which you have to pay your balance in full, without paying any interest. As long as you’ve been good and been paying your credit card payments every month, you should be able to qualify for this.
A grace period acts as an incentive and normally extends the end of your last billing cycle to the day when your bill is due. However, this perk does not apply to all purchases. Things like checks and cash advances from your credit account are not eligible for the grace period.
Get reward points and cash back
Everybody loves some freebies now and then, that’s why it’s so exciting when you get those reward points. Depending on what credit card you choose, you can receive points for payments which are made on that card. Similar to the grace period, if you are debt-free and remember to pay your bills every month, you are rewarded with a biscuit (aka points). These points can be converted into vouchers for airlines, hotels, shops and more.
However, just like everything else, there are loopholes. Instead of buying more stuff you wouldn’t typically need, stick to your normal amount of spending to reap the benefits. Also, check the rewards work out for you. You know the feeling, you’ve been spending and spending and realize that a number of points you’ve earned, doesn’t really feel like enough. Go online and do your research first! Don’t fall into the trap of the ‘paltry scheme’.
Enjoy the safety of a credit card
You can’t name a payment method which is 100% protected against theft identity. Credit cards are safer than debit cards regarding online payments. When your debit card information is hacked, you must fight to get your money back. However, if your credit card is hacked, it is the card issuer who must retrieve the money.
If you’re concerned about the legitimacy of your card, there are tons of services on the web to validate credit card numbers. In respect to cash, credit cards are much safer than carrying physical money around. If your credit card gets lost or stolen, simply phone the bank and cancel it. Whereas you’re stuck in a hole if your hard-earned cash is gone!
Even though your credit card can offer these benefits, it’s all depending on how well you’ve managed your payments. Don’t feel pressured into buying a certain card, do your research first and hear advice from other consumers, that way you will come out on top.