4 Credit Card Benefits That Could Help You This Holiday Season
Most people either love or hate credit cards. On one hand, they can tempt consumers to spend money they don't have. On the other, they're super convenient -- and can save you if your new laptop gets stolen.
While you probably know all about your credit card's rewards program, there are usually other perks baked into the agreement with your provider. Before you begin holiday shopping or traveling to visit loved ones, make sure you look at your credit card agreement to see whether these perks can make this season a little merrier for you:
1. Return Protection. Unless you're a super shopper, returns are an inevitable part of the holiday season. Unfortunately, not all stores have generous return policies, and if you aren't careful, you (or the person you bought a gift for) might end up stuck with an unwanted item. Fortunately, many cards offer return protection and may give your money back, even if the store won't take the item back.
2. Purchase Protection. Accidents happen. If your child dropped your fancy new iPad on the floor or your house got robbed while you were celebrating the holidays with your relatives overseas, you shouldn't have to pay for such bad luck. The good news: Some credit cards will guard your purchases against accidental damage or theft for a certain amount of time.
3. Price Protection. Not many things are more frustrating than purchasing an item, only to find that you could have bought it for a cheaper price at a different retailer. Luckily, many cards offer price protection, which typically means your credit card provider may cover the price difference if you see an item you purchased at a lower price and file a claim within a certain amount of time. If the difference is substantial, it could be worth your time to file the claim.
4. Travel Perks. Unfortunately, a number of different things can go wrong during a flight. Before traveling, check to see if your card offers any of these handy perks:
-- Lost luggage reimbursement. If your luggage is lost or stolen, your card provider may reimburse you for the cost of the contents in your bag.
-- Baggage delay insurance. Have you ever had to replace essentials from your checked luggage because of a delay? Fear not! If it happens again and your credit card comes with this perk, you may get reimbursed.
-- Trip cancellation insurance. Emergencies happen. If you suddenly get sick or there is a death in the family, and you booked your flights using a credit card, you may be able to get your money back on those nonrefundable tickets.
-- Rental car insurance. Need to rent a car while visiting friends or family during the holidays? While you could purchase damage waivers, they're often no better than the coverage you already have. And if you get into an accident, you could end up footing a lot of the bill. Instead, check to see whether your credit card offers rental car insurance. While the benefits and requirements may vary substantially, in many cases, your card issuer may pay for certain damages not covered by your regular car insurance policy. In other words, it provides secondary coverage. Doesn't hurt, right?
Credit Card Tips and Best Practices
While credit cards can be beneficial and convenient, they can also be harmful to your credit health if not used correctly. Whether you're itching to swipe your cards this holiday season or want a spiffy new credit card, be sure to keep these tips in mind:
-- You don't need to carry a balance on your cards to have a good credit score. Pay your bills in full as often as you can.
-- Even if you don't have the financial means to pay in full each month, try to get every single payment in on time -- even if it's just the minimum amount. Just one missed payment can drop your credit score drastically.
-- Don't forget to show some love to your older cards, even if they don't have as many rewards. They serve to increase your average age of credit history, and you wouldn't want your lenders to close them due to lack of use!
-- Inspired to look for a new credit card? Keep in mind that applying for a card will usually result in a hard inquiry that could slightly lower your credit score. It typically won't drop by much, but it's important to know to avoid an unpleasant surprise.
-- Remember to spend some time researching which card is right for you. Checking out what others think of the card on online reviews is a great way to make sure you're getting the best card possible.
The Bottom Line: If any of your credit cards offer these perks and you don't take advantage of them, you might be leaving free money on the table. Going through your credit card agreement isn't just a smart way to learn about the terms and conditions of your card -- it's a great way to learn about the less-advertised (but potentially more valuable) perks. The holiday season can be stressful enough. Let your credit cards take care of you and really make this the most wonderful time of the year.
