Better Business Bureau’s 6 Reasons to Pull out Your Credit Card

Rewards, protection and perks offered by credit card issuers: Beyond security, credit card companies offer a wide range of options and advantages for consumers.

Earn money by spending it.
Earn money by spending it.
By Howard Schwartz
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. 

Free travel 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.

Extended 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.

Merchandise 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 companies’ catalogs.

Your 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.

Do you like Connecticut Better Business Bureau posts?   If you don't want to miss any of our helpful posts, you can subscribe to our blog by clicking this link and then click "Get email updates," and our posts will arrive in your email.

Editor's note: This article previously was posted by the Connecticut Better Business Bureau blog.
Tmc May 25, 2014 at 09:03 AM
They approved my dog for a credit card; anyone can get one.
Philip May 25, 2014 at 09:28 AM
Sounds more like "What's Better for Business" Bureau - with all the fraud and data breaches going on, I'm going as low tech as possible minimizing card usage.
Igor May 25, 2014 at 10:26 AM
Seems like this state is run on the same premise. Spend now and worry about where the money is coming from later.
Andrew Mitchell Blum CT May 25, 2014 at 03:08 PM
One great thing to using a credit card is if the vendor doesn't hold up their end of the deal, you could always file a dispute w/ your bank. I've done this and won several times. Just telling the vendor you are going to do this has rectified the situation for me once too. (Yes, it's best to be able to pay off the balance in full at the end of each month). "Andrew Mitchell Blum" "Fairfield, CT"
PaulCT May 25, 2014 at 07:39 PM
The POINTS made in this post are excellent. Sounds like many are seeing this with their own vision, many negative. We use credit cards EVERY single time we pay for anything that takes a card. We PAY off balances in total each and every month, so interest rate is a non-issue. The major points made in this article are the RIGHT reasons to use a card (if you pay off the balance, just like you would pay cash or check for whatever you are paying ...). MOST important is the cards we use we earn $ on the purchases we would make anyhow (from gasoline to groceries to clothing to taxes...). And that "cash back" ( up to 5% ) and/or hotel free nights ... FREE, duh. FAR better $ than the interest we earn in a savings account in recent years. And, I'm glad to say we have not paid a penny for a hotel room in years. Also, I often advise young relatives on beginning their finances, and ALWAYS, ALWAYS encourage them to establish credit responsibility by starting with a credit card rather than just spend cash ... and always to monitor their ongoing experiences with this. Every single one has thanked me over and over for being way ahead of their peers in their finances and credit scores. They have established that financial responsibility by this as a first step to a lifetime of credit worthiness, certainly usefull in their future.


More »
Got a question? Something on your mind? Talk to your community, directly.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.What's on your mind?What's on your mind?Make an announcement, speak your mind, or sell somethingPost something
See more »