Credit cards are a completely different ball game than they were in the 80's. It was once the case that the only use for a credit card was simply to be able to buy something and pay for it later. Now though, competition between the credit card companies is so stiff that they are offering all sorts of rewards to try to attract more clientele. Credit cards compete for your business by offering incentives such as low introductory interest rates or rewards to new customers like free flights and cash back. These rewards are generally based on how heavily you use your card. There's a trick to these incentives and we'll show you how to take advantage of these incentive programs. Rewards cards: You should shop around for the best deal you can find if you decide to go with a card which comes with rewards. Find rewards which you will actually use; for example, free flights as a reward makes little sense if you don't fly often or do not plan to charge a lot on this particular card - these cards often require a lot of spending to actually get the rewards. Try to find rewards which fit your needs. Cash back rewards are good for anyone. Always read the fine print though and be sure to ask the rep fro the credit card issuer if there are any conditions or limits attached to the rewards. Also ask them if there is a time limit on redeeming the reward(s) as some are only valid for a set period of time and then they expire unused. If you are thinking of applying for a gas station reward card, be sure that there is one of those gas stations in your city first. Low introductory rates: This one has a lot of possibilities. For instance, let's suppose that you have a credit card which has a 19% APR (annual percentage rate). You make a few small charges and have a balance which can be paid off easily within six months. Then you find a card with a one year 9.9% introductory APR for new customers. You could get this new card, transfer your old balance to it and pay it off much more quickly while saving a substantial amount of money. You could then either cancel the old card or save it in case you ever need it. Remember to take advantage of the fierce competition between the credit card companies; it can really work out in your favor. Shop around and see what is out there, you might be surprised by what you find. Always do your homework ahead of time. You can gain a lot by doing this. Don't be in a hurry to sign up for the first credit card which waves a reward your way.
Thanks to the advancements in aviation you can pretty much fly to any destination of your choice anywhere in the world. To encourage you to continue flying, airline companies have introduced airline credit cards that offer various benefits. So how beneficial is it to purchase your tickets and travel using your airline credit card?
Convenience From the comfort of your home you can purchase your tickets and have them delivered to your front door. Some credit card providers even give you the option to choose your own seats and fast track check-ins to enhance the quality of your travel experience. You do not need to worry about obtaining foreign currency or changing funds after your holiday as you would be able to use your credit card at most of the destinations you visit. You also have the option to withdraw cash should you need it for taxis etc.
If you are travelling on business, you do not need to worry about keeping every receipt for purchases made on your credit card as your card statement would provide the record of your spending which you would need to reclaim expenses. For extra security however, it is advisable to keep all transactions receipts if your companies would require you to do so.
Safety Having your credit card makes it easier to manage your funds as you would not have wads of cash in your purse or wallet. Using your credit card would eliminate the awkward, attention drawing moments when you have to sift through all the foreign money you have.
Many airline credit card providers offer services where you can register all your credit and store cards with them and in the unlikely event that your purse or wallet is stolen, just by calling one dedicated telephone number you can notify all your credit card providers of the theft and get your cards cancelled.
Rewards When you purchase your tickets or any item using your airline card you receive miles in addition to flying with your selected airline, this is quite useful if you fly frequently as over a year, you could earn substantial reward miles to redeem for your next holiday.
Account Management While you are on holiday, once you have access to the internet, you can monitor and manage your account and see how much money you are spending. You would be able to see the exchange rate at which your purchases are charged and this can result in your money stretching further if your holiday currency is of lesser value than your home currency.
When you use your airline credit card abroad, your provider would charge you a transaction fee for each purchase or cash withdrawal. Depending on the how often you use your card these fees can add up. You should investigate the cost of changing foreign currency and weigh the options of saving money over safety and convenience.
Both Mary Bush & Anthony Samuel are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.