Credit card freebies:
One big advantage of using credit
cards is that many credit card today offer
free stuff to encourage you to get or use
one particular card. The card companies
prefer not to compete on interest rates
and pother card costs. So they have come
up with stuff to hand out that is less
expensive to them than cutting interest
rates and fees would be. Some of that
stuff can be very valuable to you if you
pay your balance every month. If you don't
pay your balance every month, the heavy
interest you will pay to the card company
is almost certain to far outweigh the
value of the freebies you get.
The freebies can take
many forms
Cash rebates on
purchases - You save about 1% annually
on all purchases and at the end of the
year you will receive a check or credit to
your account in the rebate amount.
Frequent flier bonus
mileage - You receive a frequent flier
mile for every dollar you spend. Those
miles are worth about two cents each.
Two for one flights
around the country - Several airline
cards offers two-for-one vouchers of you
apply and are accepted for their card.
Generally, this offer is made to new
members of a frequent flier's club
Free merchandise - Many
cards, especially around the winter
holidays, offer merchandise bonuses in
special seasonal mailings to card-holders.
Credit cards have other advantages too
They prevent airport
security hassles. Using a credit card
to buy airline tickets may keep you from
being harassed at the airport. The FAA and
the airline have decided that if you buy a
ticket with a check or cash you are more
likely to be involved in illegal activity
than if you pay with a credit card.
They protect you
against bankrupt airline. Charging
airline tickets gives you good protection
against airlines that go broke after you
buy your tickets but before you fly.
Stop payment rights.
Perhaps the biggest advantage of using a
credit card is your stop-payment rights.
If you buy something over the Internet,
and do not receive it, you can put a
stop-payment on the item.
Improved Credit Rating.
Another plus of using credit cards, so
long as you make all of your payments on
time, is that regular use will help your
credit rating by showing that you meet
your credit commitments in timely
fashion. Of course, if you don't pay your
bill on time, you credit will be hurt.
Extended Warranty,
Theft and Damage Protection. Many card
provide theft, damage, and added warranty
protection on purchases made with he card.
