What are the benefits of having a credit card?

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What are the benefits of having a credit card?

Postby andrewf123 » Wed Jun 13, 2012 3:24 am

Hi there, I am thinking of applying for a cash back card but aside from the rewards, what are the benefits of having one?

Can you tell me which one has the best benefits? What is your experience?

Thanks a lot! :-)

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Postby MemberSince99 » Wed Jun 13, 2012 6:45 am

One of the reasons is if you use a debit card and thieves steal your info, they can drain your bank account. With a credit card they can't. Credit cards give you longer to spot fraud and report it without being liable as well.

You also get a longer warranty on items you buy, rental car insurance, and a bunch of other things. Depending on the card you might get roadside assistance for example.

Personally I prefer Amex for a couple of reasons. First if you ever dispute a charge Amex is on your side, not the side of the crooks. I've only disputed maybe 3 charges in the last 5 years and when I did they basically came down to fraud in 2 cases and one the item was defective and the merchant refused to do anything about it (basically said too bad so sad). With Amex, they are on your side in these cases where with other companies really YMMV. Also with Amex, they have excellent customer service and you will never get "Peggy" on the phone unlike some other companies (cough cough Cap One). Discover is also great and I found the customer service for FNBO was very good as well they are both American based CSRs who you can actually understand as English is their native language.

One thing to keep in mind as far as benefits is what do you want them for? In other words do you want miles for flights, cash back, points, etc? That will help determine which cards you would be best off to go for.

Hope this helps.

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Postby bmw1990Z » Wed Jun 13, 2012 10:03 am

For me I use credit cards to get points and miles towards flights. My debit card can't do that. It depends on your bank, but with mine, if anything were to happen to my account, they credit my account within two days with the money which went missing. I suppose some banks don't so it's nice to have that feature on an amex. Unless you are putting a TON of money on a cashback card, your going to get more for your spending throuh a rewards or miles card IMO.
Cards in my wallet:
-Citi Forward Card for College Students-July 2011
-American Express Platinum Delta Skymiles--July 2013

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Postby FutureBillionaire » Wed Jun 13, 2012 12:59 pm

I use them for all the reasons above, plus using a card gives you extra time to pay for a purchase. I typically have 30 days to pay for something if I use my card after the statement closes. I also like to earn cash back, points, and rewards.

Cash back cards are probably best if you are getting 5% back. Otherwise, it takes a while to accrue enough cash to redeem it.
Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape

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Postby jeffysdad » Wed Jun 13, 2012 4:35 pm

If you use it wisely, don't overspend and pay the balance in full every month by the due date, I believe a credit card is in every way superior to other forms of payment, assuming your merchant accepts credit cards and doesn't tack on a fee for doing so.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.

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Postby Snowman » Wed Jun 13, 2012 10:57 pm

I usually carry about 50-100$ in cash, and everything after that is used for the card, then I combine both of my paychecks and the week before the statement reporting date I do my best to pay it off (I've only had the card for what is now the 2nd month and that is my plan). Personally, In a few months (lets say Dec) I want to apply for a Amex if my CC scores are okay, and maybe a chase card. Also benefits include, paying it off when you can, you have warranty, instant gratification, mileage and or cash redemption, there are alot of reasons. Just know how much you can charge so you can pay off the card and use it wisely...
Bank Of America: BankAmeriCard Cash Rewards-4.2k
Citi: Forward-4.5k American Airlines Advantage Platinum Select World Elite MasterCard 9/6/15-4K
Discover: More-7k
Amex BCE.2k- Amex SPG-5k
Chase: Freedom-5kSouthwest Rapid Rewards Plus- 3.6k
Capital one: Venture one-10,000, Visa Signature.

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Postby Money card » Wed Jun 20, 2012 10:00 pm

I use credit cards for going out to sit down restaurants like Ruby tuesdays and Buffalo wild wings, not fast food like Burger king or Kentucky fried chicken. those places I use cash. like what snowman said I usually carry 50 dollars. when ordering out of town sports merchandise, it can be hard even in my area to find teams my family likes. so on a occasion I wil order and use a credit card. during the holiday season I will use credit cards, birthday gifts.

you mentioned that you are interested in a cash back card. I have had a Discover card since 1998. you get 1% cash back on all purchases, they do have a rotating category where you get 5% back but there's a cap you also have to sign up, on popular categorys like the movies, gas stations, department stores, grocerys.

again the 1 thing you need to remember this is a Discover card and it's not accepted everywhere, there are some popular places that don't take Discover.

In London you might not want a Discover card you might want a Chase Freedom, basically the same idea.

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Postby FastSRT8 » Wed Jun 20, 2012 11:13 pm

Aside from the benefits addressed above, CC's give you purchase protection and other insurances cash can't do
Carpe diem quam minimum credula postero!

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