Credit Card Quick

How your Credit Card may Protect your Purchases

Introduction

There are many reasons why it may be a smart move to make purchases using a credit card, but one of the most important may be because of the protection credit cards may offer buyers.

Most of the major creditors now offer something called “purchase protection,” which is essentially a feature that protects your purchases and provides a peace of mind.

Although purchase protection is offered by the major creditors, the truth is that few people actually take the time to learn about this feature, and instead only focus on the APR and rewards of a credit card. Although the general terms and conditions vary from one creditor to the next, the goal is generally the same: to offer you protection on your purchases.

• Time Frame – Purchase protection typically protects your purchases from accidental damage, loss and vandalism. Pay close attention to the payout terms of your card’s purchase protection, as the time frame during which you can make a claim will vary. The time limit for most purchases is between 60 and 90 days. In other words, your purchase is protected through the card’s purchase protection feature anywhere from 60 to 90 from the date of purchase.
• Payout – Another feature of purchase protection that may vary from one creditor to the next is the payoff amount. American Express, for example, covers purchases of up to $1,000 per occurrence or $50,000 per member account per year, while Visa’s Signature card is $500 per occurrence and an annual maximum of $50,000.
• Terms and Conditions – Each creditor’s terms and conditions vary widely, so take the time to thoroughly read what’s covered and how you must go about making a claim. Some creditors, for example, will require you to make a police report in the event of a theft, for example.
• Proof of Purchase – Although your purchase is recorded on the credit card statement, it is still very important that you hold onto your purchase receipt from the retailer so that you will be able to verify the date and the purchase price of the item in question.

Is Using your Debit Card in Place of your Credit Card always a Good Idea?

ATM Choosing Credit Card

The recession and national housing market crisis has begun shifting many consumers’ beliefs regarding credit cards and debt in general. As a result, many consumers have begun putting away their credit cards in favor of debit cards. But is this always the right choice?

More and more consumers are using debit cards over credit cards, and the data supports it: nearly 56 percent of consumers reported using a credit card in the past month, compared to 87 percent in 2007, according to Javelin Strategy & Research. In addition, total payment volume for debit cards surpassed total payment volume for credit cards for the first time since 2009. The study went onto report that it is estimated the number of people using a credit card during any given month will further drop to just 45 percent.

Although credit cards have been demonized by the government, the truth of the matter is that credit cards offer many protections that debit cards simply can’t.

Credit cards, unlike debit cards, offer the following benefits:

• Car Rental Protection – Many credit card issuers offer protection from car rental loss or damage, so it often pays to use your credit card when renting a rental car. Check your credit card’s terms and conditions before heading to the rental counter to be sure you will be adequately covered.
• Price Protection – If you purchase an item, only to find that same item for a lower price within a certain time frame (usually 30 to 60 days), you may be able to get a refund for that price difference through your credit card company. Citi, for example, offers consumers a rebate of up to $250 per item through their price protection plan.
• Purchase Protection – If you purchase an item on your credit card, only to have that item stolen or damaged during a certain time frame (usually up to 90 days), you may be eligible for a reimbursement through your card issuer. American Express, for example, offers its customers up to $1,000 per incident and up to $50,000 per card member per year. Purchase protection may also be used when a retailer will not accept a refund on an item.

Learn about your Credit Card’s Features and Save

Credit Card Rewards

Often times we find ourselves so concerned about our credit card’s terms and conditions that we fail to recognize that our cards carry some great features that can help us save money, manage our money and protect our purchases.

Although it certainly is important to thoroughly read our credit card’s terms and conditions so that we understand such things as our APR, our monthly due dates, cash advance fees, credit limit and the like, we should also take the time to read all of the features that so many creditors offer with their cards.

So many consumers fail to read and understand their credit card’s features, which means that many of us are losing out on some great perks and features. In other words, take a second look at your cardholder agreement to learn about your credit card’s benefits:

• Proof of purchase – Perhaps one of the best features of your credit card is your monthly statement. Sounds weird, doesn’t it? But it’s true! Your monthly statement is a clear proof of purchase for any expenditure, so if you need a run-down of expenses for your business, for your taxes or simply for your own records, your credit card statement does the trick. Plus, it can also serve as a receipt for a purchase if you misplaced your original store receipt. The bottom line is: hang on to your monthly credit card statement – you never know when it will come in handy!
• Purchase protection coverage – Many cards now offer purchase protection coverage, which essentially protects you from damaged or defective goods when purchased on your credit card. Your creditor can actually go after the retailer in question to get you a refund on a defective or faulty purchase.
• Car insurance rental coverage – Did you know that if you pay for a rental car with your credit card that you may automatically have rental insurance coverage? Many creditors offer their cardholders insurance coverage for rental insurance companies; which means that you won’t have to purchase the costly insurance through the car rental company.

What you need to Know about Traveling and your Credit Card

Card Security

Traveling with a credit card provides us with many conveniences and advantages. It eliminates the need to carry a large amount of cash; it protects us against fraudulent spending; and it even provides us with purchase protection insurance. Best of all, most major credits are accepted at destinations all over the world.

It is therefore important to always plan accordingly so that your travel plans won’t be interrupted by credit card problems.

• Call the company ahead of time – It always a good idea to call the creditor before you depart on your vacation to let them know that you will be traveling and perhaps charging more than you typically would. Many creditors, when they see a great deal of credit card activity, especially in a different location, will flag a credit card for fraud. It is therefore important to inform them, ahead of time, so that you won’t have to deal with a frozen credit card account while you are on holiday.
• Check your balance – There could be nothing more impractical than not having enough credit on your credit card while away on vacation. Therefore, it is best to check your balance before you leave and, if necessary, contact your creditor and request a credit line increase to accommodate your travel expenditures.
• Beware of using your credit card at suspicious locations – Use your credit card only at trusted locations while traveling, if possible; especially while traveling abroad.
• Always carry a backup credit card – If you experience problems with your credit card, it is always a good idea to carry another, major credit card as a back-up.
• Keep the credit card phone number in a safe location – Write down your credit card’s phone number and store it in a safe location while on vacation in case you need to contact the creditor. You may choose to keep it in a separate piece of luggage, or you may ask your travel companion to carry the number. Of course, you don’t want to carry the number in your wallet or purse, as it won’t do you much good if it is stolen, too, along with your credit card.

Five Reasons to Have a Credit Card

Choosing Credit Card Credit Card Rewards Credit Score Introduction

Contrary to popular belief, credit cards are not our enemy. In fact, they can be extremely beneficial to us in many ways. Of course, handling our credit responsibly is of the utmost importance, so it is vital that we become educated on how to responsibly use credit cards before we get in over our heads in credit card debt.

If you are prepared to handle your credit card debt in a responsible manner, then you should understand the many ways in which credit cards can help you and your credit.

You should have a credit card to:

1. Build your Credit Score - In order to have good credit, you must first have credit! A good credit score typically shows credit in different areas; namely, installment loans and credit cards. Creditors are unlikely to approve you for larger loans such as cars and homes if you have not proven your credit worthiness. And a credit card is the way to show this!
2. Build your Credit History – Just like building your credit score, a creditor simply can’t consider you a good credit risk if you don’t first establish a strong credit history. A great way to establish your credit history is to charge several purchases each month and pay off those purchases in full at every billing cycle.
3. Protect your Investments - Many credit card companies offer purchase protection, which can be extremely valuable if you use your credit card to make large purchases. Each credit card company has different policies regarding purchase protection, but most cover the cost of replacement in case of theft or damage.
4. Take Advantage of Reward Programs – Many of today’s credit cards come with perks in the form of reward programs. From free airfare and free hotel stays to cash-back programs and discounted vacations, reward programs offer fabulous rewards for simply using your credit card for purchases.
5. Protect yourself in Case of an Emergency - A credit card can quickly become your best friend if you find yourself in an emergency situation without cash. A credit card may allow you to replace a broken furnace; it may allow you to purchase last-minute airfare; or it may enable you to have your car repaired. Whatever the reason, a credit card may prove to be extremely useful for those moments in your life when you need financial help.

Why Credit Cards are often better than Cash

Credit Card Rewards Introduction

It would make sense that cash is better than credit when making purchases. However, given the many benefits of today’s credit cards, this is not always the case.

For both business and personal use, credit cards may prove to be a very effective financial tool for credit card holders.

Credit Card Benefits

• Purchase Protection – If you receive an item that is unsatisfactory and the company or manufacturer is unwilling to grant you a refund, or if you purchase an item that arrives damaged, or not at all, the purchase protection feature on your credit card may cover your expenses.
• Extended warranty – Many purchases on a credit card come with the protection of an extended warranty. For example, electronics may be covered with a warranty that covers the purchase on top of the store or manufacturer’s warranty. Most credit cards offer a 90-day extended warranty on most purchases.
• Rewards – Many of today’s credit cards offer rewards of many kinds, such as cash-back rewards or rewards for products and services. For example, some credit cards enable credit card holders to earn points toward free hotel stays, airfare or reduced vacations. In other words, simply using your credit cards for purchases may earn you cash rebates or free products or services.
• Access to Emergency Money – A credit card in your back pocket may provide you with financial protection during an emergency situation where cash isn’t available. An emergency airline ticket, rental car, vehicle repair costs or even a new furnace are all necessary purchases that may not be attainable if it weren’t for the convenience of a credit card.
• Financial Bookkeeping – Credit cards are a very useful financial tool for tracking expenditures and maintaining finances. Credit cards, for both personal and business use, provide an individual with a clear record of all expenses.
• Convenience – Perhaps the most popular reason for using a credit card is the sheer convenience of it. Most individuals who use frequently use credit cards cite the practicality of not carrying cash as the biggest reason for using a credit card for purchases.