Nowadays, more and more people are getting crazy over using credit cards. There may be risks in using these cards, but if you can pay your bills on time every month and not carry any pending balances on your credit cards, you can expect great things. Investopedia stated that credit cards offers an amazing convenience, especially the perks of using them.
Ever wondered where rewards came from? Every time you use your credit card, the merchant pays your bank an interchange fee. The Forbes stated that the average fee structure is 2% for MasterCard and Visa while a little higher for American Express. Your goal as the credit card holder must be to get as much interchange back as possible. So it's better to consider using your credit cards frequently to maximize your perks, rewards and rebates.
The more frequently you use your credit cards, the greater your chance for perks will be. You only have to be well informed about it so you could receive the full benefits. Some of the credit card perks that are usually kept hidden are the following:
1. Extended warranty. As you buy something that has manufacturer's warranty, the card issuer will extend that warranty usually for an additional year. This benefit is great for expensive or large buys like home electronics, computers and washing machines. However you might not think that this also can work out for actually anything with warranty such as blenders, eyeglasses, coffee makers, furniture and luggage, according to Elizabeth Crosta of Bankrate.
2. Some banks offer no currency conversion fees when you purchase stuff overseas. These banks include Capital One, Discover and Navy Federal Credit Union. Bank of America and Chase issue 2% for the fee.
3. Other banks also offer roadside assistance and is considered as one of the lesser-known perks. Services may vary depending on the bank and the coverage of services. Some cards have nationwide networks but others don't. That's why this perk might be limited to some geographic areas. Others can protect you 24/7.
Maximize the benefit of your credit card, know everything about it and make sure to consume the gifts your bank is offering you.
