Executive communications director, Connecticut Better Business Bureau
Paying by credit
card is not only safer for consumers, but according to Connecticut Better
Business Bureau, responsible use of credit cards can pay off in many other ways.
Recent data breaches at well-known retailers
underscore a significant reason to use credit rather than debit: Security.
When a debit card is used fraudulently, lost or stolen, the money comes right
out of your bank account. When
unauthorized or disputed charges appear on a credit card statement, you have a
buffer while the credit card company investigates.
Beyond security, credit card companies offer a wide
range of options and advantages for consumers:
Protection – Some credit cards offer protection against
accidental damage or theft of new merchandise – with some exceptions - within
90 days of purchase.
insurance – Credit cards provide a
great measure of peace of mind when they offer insurance that covers trip cancellation,
emergency assistance and lost or damaged luggage.
warranties– Most major credit card
companies offer extended warranties for free as part of their consumer
protection package. Typically they will
double a manufacturer’s one year warranty.
return protection – Retailers usually
limit returns to 30 days, however, this perk kicks-in for up to 90 days, if you
decide you don’t want the merchandise. A
credit card company may either try to help you successfully return unwanted items
or refund you a portion of the purchase price.
Rewards! – Depending upon the card, you can receive up to 5
percent cash back on credit card purchases, discounts on gasoline, frequent
flyer miles, gift cards and other merchandise from credit card rewards
reputation - A credit card can also
help you establish a sound credit history if you don’t overload yourself with
debt, and pay your monthly bill on time.
When it comes to shopping, it is well worth it to shop
around for a credit card that offers the kind of perks that fit your lifestyle.
Editor's note: This article previously was posted by the Connecticut Better Business Bureau blog.