Extra Protection

Most people know that credit cards offer more protection than cash, checks or even debit cards. They aren’t connected to your bank account, they can be shut off if stolen and you usually aren’t liable for fraudulent charges. But did you know that products purchased on your credit card may also automatically have extended warranties? And that your credit card company will go to bat for you if products purchased with the card break or underperform?

Money-Saving Perks

I often joke that my credit cards pay me to shop. There are a huge number of money-saving benefits to both store cards and major credit cards. My Gap card gives me free shipping when I buy things online, free alterations on clothing, discounts on the first Tuesday of every month and a once-a-year personal sale day with discounts up to 15%. My Discover card gives me cash back on everything I buy and provides extra cash back on certain categories of purchases and when I shop online retailers accessed by a special link on their site. My Visa, which is linked to a Macy’s store account, also gives cash back bonuses in the form of Macy’s coupons!

Boosts to My Credit and Borrowing Power

Perhaps most important of all, using my credit cards on a regular basis and paying off my balances each month helps increase my credit score and, in turn, my borrowing power. Of course I avoid paying interest whenever possible, but a higher score helps me get s lower interest rates on big purchases that I have to borrow for – like my house and my car. This saves me thousands of dollars over the life of the loan.

So next time someone warns you about the hazards of credit cards, think twice. If you’re a responsible spender, they might end up paying you to shop.