Credit Card Enticements and Incentives

Credit Card Freebies Can Be Quite Valuable

There can be an upside to using your credit card. Many credit card issuers throw in little goodies that can actually be worth something.

For example many "Gold" cards offer car rental insurance. In most cases this means that the insurance covers the deductible on your personal auto policy. But if you don't have auto insurance it covers all damage up to a limit, around $25,000. Just decline the rental company's insurance and use the card for the rental.

Another feature you might encounter is Purchase Loss or Damage Coverage. Within a certain time frame, the card company will cover loss or damage, effectively extending your warranty.

American Express offers its Gold cardholders, a "concierge" service to help you get tickets and reservations. The company also offers discounted seats at sporting events and concerts.

Some credit cards, especially those tied into a specific merchant, will offer special discounts or specials from that merchant and affiliated companies.

Or they enclose a folder of discount coupons in their statements, like 20% off a cruse, 15% off admission to Disneyworld, free fries at McDonald's, etc.

On a gas credit card you might get discounts on gas or auto service: a store credit card might offer special coupons or shopping events to its holders.

Some credit cards offer free travel insurance and/or lost luggage coverage when you charge tickets on the card.

You can get a rewards or cash back card. You either get points that can be used to buy merchandise, get free airline tickets or upgrade to business or first class: or you get 1 to 5% of most purchases rebated as cash.

Many credit cards offer protection against fraud when shopping on the internet. And the ability to get the credit card company to charge back purchases to the merchant when you get ripped off can be very valuable.

Read the little booklets and postcards the credit card companies send you. Find out what freebies are included and how to use them.

There can be a lot of fine print with some of these offers, so make sure you do everything necessary to qualify.