Many people can’t really grasp why they receive so many credit cards offers through the mail or email. The reality is that credit cards companies exist in an extremely competitive industry. Every customer translates right to the company’s bottom line. The credit card companies also realize that credit card holders are always susceptible to a better deal since loyalty only goes so far when talking dollars and cents.
The biggest problem for consumers tends to be a lack of understanding about credit cards and the real benefits or pitfalls. Credit card companies advertise benefits and customers apply for these cards, then never quite get around to taking advantage of everything a credit card has to offer.
Credit Card Advantages
There are literally thousands of different cards available in the marketplace. There are cards for consumers with great credit as well as no/bad credit. There are credit cards for kids and credit cards for senior citizens. Almost everyone of these credit cards have some type of benefit tied to it. Here are a few of the more common benefits offered by credit card companies.
- 0% interest on transfer amounts for the first 12 months
- Cash back incentives
- Airline Miles
- Points applicable towards accommodations, goods and services
- Priority purchase of concert and event tickets
All of these benefits are offered as incentives to accept a credit card company’s offer, and the benefits are real if consumers take advantage of them.
Learning About What Your Credit Card Can Do for You
It is very understandable that some consumers only hold a credit card as protection against emergencies with no intention of ever using it for normal expenses. That is certainly a respectable way to manage finances. Then there is a body of people who use their credit cards on a regular basis without understanding all of the card’s possible benefits. There are not many people in the world who can afford to pass on benefits that can have a positive impact on their wallet. By simply optimizing the way they use their credit cards, they can accumulate real savings on goods and services they would purchase no matter what.
We talked with CompareCards.com about the benefits of a credit card, and they said that there are two things consumers can do to learn about what credit cards really offer. They said, “First, they should pay attention to the offers they receive. When an attractive offer comes along with benefits that match the way they consume goods and service, they should accept the offer with the intention of using the card to its strengths. Secondly, consumers who aren’t sure about the benefits tied to their current cards should contact the credit card company and get a full accounting of all the related benefits.”
Optimizing the Use of Credit Cards
The last thing anyone wants to do is find themselves in debt up to their eyeballs. The truth is that people can use credit cards without accumulating debt while still taking advantage of the benefits. Here are some ideas of ways to efficiently use credit cards.
- Take Advantage of 0% Transfer Offers – If a consumer has an outstanding balance on a card that charges a high finance fee, it would be prudent to transfer that balance and save the interest costs for a year.
- Pay Off Monthly Charges – Try using the card for goods and services in order to earn points and then pay the card off each month.
- Take Full Advantage of Benefits – If a consumer has two credit cards, one that gives a 2% rebate on gas purchases and one that give a 2% on grocery purchases, the consumer should use them for those exact purposes in order to maximize benefits.
- Use Points – There in no point in accumulating points if they never get used. Learn what the card’s redemption guidelines are and redeem those points whenever possible.
It is incumbent on each consumer to understand the details about their credit cards. They should understand all the intricacies related to interest rates, late payments and possible benefits. Armed with all this information, most consumers can learn to use credit cards and create a worthwhile financial windfall.
