Credit cards may get a bad rep for having incredibly high annual percentage rates (APR) that drag big spenders even deeper into consumer debt. And while some personal finance gurus think it’s a better idea for irresponsible users just to stop using credit cards altogether, I do think making the debit card one’s primary payment method could cause one to miss out on a slew of benefits (well-known and underrated) that go above and beyond just the points, cash back, lounge access, priority boarding on flights, or anything else that has many Americans “sold” on a particular credit card.
Key Points
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There’s more to choosing a credit card than the “headline” perks.
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Fraud and consumer protections, and travel insurance are invaluable perks that are often overlooked by cardholders.
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Looking beyond the promos and front-page perks that ads concentrate on
Indeed, it’s not hard to imagine many are convinced to sign up for yet another card by the handsome promotional offers advertised to them. Indeed, if you sign up at the right time, you can get some pretty sweet deals. Whether we’re talking about a considerable sum of points (10,000 or more upon signing up), which may be enough to fund a modest vacation in the next city over, or something else, it’s most important that you’re happy with what you have left once that initial promo “honeymoon” period inevitably comes to an end.
Of course, we’re all aware of the headline perks that got us in the door (think lounge access, elimination of foreign transaction fees, or rich multipliers on fine dining and groceries) In any case, I believe that some of the best perks of credit cards aren’t talked about all too much. Indeed, perhaps it’s because such perks have become pretty much standard, regardless of the card you’re looking at.
And in this piece, we’ll check out a few of the more underrated credit card benefits that American consumers shouldn’t sleep on. And while your credit card probably already has some of these perks, you may not be aware that you may be forgoing such perks by opting to use cash or your debit card (which essentially takes the money straight out of your bank with less in the way of consumer protections).
The best perk of them all: Fraud and consumer protections
Indeed, this is a massive benefit that you probably won’t get when you swipe your bank’s debit card. And while most credit cards have top-tier fraud and consumer protection built in (many of them use sophisticated AI technologies to prevent fraud in its tracks), I still think the common feature is taken for granted by young American consumers.
It’s not just the added security from credit cards that should give consumers peace of mind, either. If something does go awry and your credit card happens to fall into the wrong hands, it’s never been easier to fix what would have been a profoundly stressful situation just over a decade ago.
Indeed, you can now “lock” your card with the click of a button through an app without having to call in and wait in line as someone goes on a spending spree at your expense. Also, various credit card apps now have solid customer service chat options that can swiftly answer questions about any suspicious expenses or alerts you may have received in real time.
Travel insurance may already be included on your card.
For many of today’s young people, we don’t think a whole lot about insurance, especially travel insurance. Indeed, when we’re booking our dream trip, the last thing that comes to mind is injuries, financial catastrophes, lost bags, endless delays, or even a cancelled trip. But such mishaps do happen, and it’s good to be covered for added peace of mind when one goes on their adventure.
Undoubtedly, if you’ve booked a trip online, you’ve probably been bombarded by travel insurance add-ons. Depending on the coverage your card provides, you may already have your bases covered. And that’s a perk that’s seldom discussed, especially among young travellers.
Credit Card Companies Are Doing Something Nuts (Sponsor)
We’ve been writing about ways to make, save, and invest money for over 20 years. But some of the cash back credit card rewards today still make our jaws drop. There are $200 cash bonuses, 3% back on gas and groceries, $0 fees, and even some 5% rewards out there right now. For the average American that could mean hundreds, even thousands of dollars on rewards a year.
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The post Are You Missing Out? Unearthing the Credit Card Perks Issuers Don’t Advertise appeared first on 24/7 Wall St..
