The Truth of Credit

With all the legislation going on in Congress regarding growing consumer debt, we may see a brief end to the “rewards” that some credit cards offer their clients. I say brief because more than likely it will be a knee-jerk reaction because of the regulation. The Credit Card Industry is so competitive this is really one of the only ways a card can differentiate from its competition and can’t afford to give up their edge with consumers.

To make sure you are not passing up potential free benefits, here is a rundown on the ways your credit card can help you save.

• Automatic rewards:  If you forget to collect the rewards that you accumulate, many cards offer tools that automate redemption.  With some cards, rewards are distributed to you on a set schedule. American Express Blue Cash, for example, credits cash-back earnings to your account once every 12 months. Other cards may let you decide when you receive automatic payouts or will send you e-mails reminding you of your rewards count.
• Store discounts:  In addition to traditional rewards, your credit card also may offer discounts at select retailers.  For example, Visa cardholders can save $15 on purchases of $125 or more at Kmart.com, or $5 on purchases of $50 or more at Target.com. See www.usa.visa.com.  Discover cardholders, meanwhile, can earn 5 percent cash back when they shop select categories of retailers, including travel, gas and movies. See www.discovercard.com.  You also may be eligible for 5 percent to 20 percent in savings if you shop certain retailers online through Discover’s website.
• Coverage for purchases:  Let’s say you buy something with your credit card and you lose the item, or it’s defective or stolen. Even if the manufacturer’s warranty has expired or doesn’t apply, you may qualify for a replacement or compensation through your credit card.
• Free gifts with purchase:  Some retailers credit cards like Victoria’s Secret offer free gifts with purchases offered at various times throughout the year in addition to traditional benefits like award points to receive gift cards.
• On-time payment rewards:  Discover’s Motiva card offers the reward of an interest-free month every six months that you pay your bill on time.

The TRUTH is with how much money some of these companies make off you they should be paying you use their cards. The best way to take advantage of these companies is to use their cards all month and then pay them off in full every month. They truly hate that; they even call people that do that “deadbeats”!  Imagine that!

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