6 Ways Credit Cards Make Life Easier

Credit cards make life easier in many ways. They allow us to pay for items over time. They let us reserve hotel rooms, plane tickets, and rental cars. Many of them even give us rewards just for using them to make daily purchases. And, of course, they can improve our credit scores to open the door to larger purchases, like homes and automobiles.

But did you know that your credit cards can help in other ways? It’s true. And most card holders don’t even realize what a resource they have in their wallet.

Rental Car Insurance
The next time you rent a car, do a little research first. Your credit card might offer insurance, negating the need to purchase insurance at the rental counter. Call your card services to find out if your card offers this protection. Most Visa and American Express platinum cards do.

Returning Items
We’ve all been the situation where you need to return an item to the store, only to find that the receipt is long gone. Stores don’t like to refund purchases unless you have proof that you made the purchase in their store. If you used a credit card to fund the purchase, all you have to do is whip out a copy of your credit card statement and show it to the retailers. The proof is in the print, and you will be able to return your item with no hassle.

Price Protection
Have you ever found and purchased something, only to see it go on sale the next week? Shoppers hate to feel like they’ve been stiffed out of a good deal. If you have Citi or Chase credit cards, it could be worth your while to see if they offer price protection. Most of these cards will refund the price difference if you can provide proof of the new, lower price within 60 days.

Warranties

If you have an American Express or World Visa card, don’t bother paying for extended warranties at stores. If you used your credit card to buy the merchandise, you might be able to extend the item’s warranty to a maximum of one year – for free. That’s a great way to save a little cash.

Theft and Damage

If you used your credit card to buy an item that was subsequently stolen or damaged, your card might offer you coverage above and beyond what your insurance company will pay. Be sure to document your purchase and the dates and descriptions of the incident. You could get as much as $500 per item, or even $10,000 or more if you have a MasterCard Gold or Platinum.

Credit cards get a lot of flak for getting us into debt. But card holders get themselves into debt by not using their cards responsibly. Know the benefits that your card offers, and take advantage of them! Read More...

How to Use Your Credit Cards as You Age

Life is made up of many stages, and those stages actually help us determine how best to use our credit cards. Don’t believe me? Experts say that parents should monitor the credit habits of their teens and college-aged children. Even into the 20’s and 30’s, credit card use should be kept to a minimum. Here’s some advice for putting your cards to good use at any age.

Twenties and Thirties

These are the decades when we often have “the wants”. We want a nice car, we want a big house, and we want a big-screen TV and the latest i-Phone. The problem is that most of us are plagued with college debt during this time, and we’re trying to get by on entry-level salaries to boot. Experts recommend paying for most things in cash. Don’t charge things you can’t really afford. If you do need to make a credit purchase, look for a low-interest credit card with no annual fee. Remember, early spending habits set the tone for our financial lifetime.

Forties and Fifties

This is when most people find themselves on secure financial footing. Their dependents have left home, and they can finally afford to buy some of the luxuries they dreamed of in their youth. Still, don’t go overboard with the credit cards. You’re probably paying for a mortgage, vehicles, and possibly some college educations for the kids. Consolidate your credit card debt to get it paid off faster. Then take the money you’d spend on credit card payments and invest in a retirement fund.

The Golden Years
Surprisingly, seniors are racking up credit debt faster than any other demographic. Because people are living longer than ever before, it’s important to make a realistic assessment of your finances before you retire. If credit cards are your main source of funding, you could try adding to your income with a part-time job or taking out a reverse mortgage on your home.

Any Age

No matter how old you are, start getting into the habit of making your credit card payments in full, on time, every month. When you carry a revolving balance, you open the floodgates of high interest rates and finance fees. Paying off your balance every month will build up a strong payment history on your credit report, and will also help you stop debt before it spirals out of control. Read More...