Plastic Tactics—24 Tips for Smart Credit Card Use
In today's economic climate, every dollar counts, and savvy consumers are turning to an unlikely ally in their quest to stretch their budgets—credit cards. Far from being a one-way ticket to debt, credit cards can be powerful tools for saving money and even earning rewards when used strategically.
Using a credit card responsibly is more than just avoiding interest charges—it's about leveraging perks, bonuses and features to maximize your financial gain. From cash back on everyday purchases to travel points that can fund your next vacation, the right credit card strategy can put hundreds, maybe thousands, of dollars back in your pocket annually.
Consider these techniques to transform your credit card from a potential pitfall into a budgeting boon:
Earn rewards points. Choose a card that offers rewards for every dollar you spend.
Tailor rewards to your spending habits. Rewards range from travel points to cash back to discounts on adventure experiences and more.
Take advantage of sign-up bonuses. Compare card offers to maximize your benefits.
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Amplify your purchasing power with double and triple rewards points. Be aware of these promotions and try to time your large purchases to coincide. REMEMBER: Not all card issuers are created equal. Some will offer extra points only on certain purchases. If you have a Mountain America Rewards credit card, you’ll earn double and triple points on every purchase during our promotional periods!*
Cash-back lovers, rejoice! Some cards offer rewards on select purchases, but the Mountain America Cash Back credit card provides cash back on every swipe.*
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Time major purchases for maximum gain. Save up for big-ticket items, charge them on your credit card when you’re ready, then pay in full to avoid any interest, saving twice over.
Pay with credit cards instead of cash when traveling. It’s safer, and most major credit cards are accepted anywhere in the United States and overseas.
Use your credit card statement as a spending diary—many statements even categorize expenses. They are helpful whether you’re planning for upcoming expenses or looking to save, turning a no-plan finance strategy into a clear budget roadmap.
Planning a vacation? Many credit cards offer free trip delay insurance, which can cover costs for hotel stays, clothing, food and toiletries—up to $500 per person—in the event your flight or other travel is delayed overnight or for more than 12 hours during the day.
If you find yourself needing to cancel or end your trip prematurely, your credit card could come to the rescue if it provides trip cancellation or interruption insurance, which could reimburse some or all of your expenses.
What about lost or stolen travel tickets? Your credit card could be just the hero you’re looking for! Many credit cards offer assistance with emergency ticket replacement, arranging for the delivery of new tickets and the navigation of the replacement process.
Book stress-free. Holding a reservation at a hotel or car rental with a debit card can freeze funds for days, while your actual cash is not affected by these temporary blocks if you use a credit card.
If you don’t carry your own auto insurance (maybe you don’t own a car), check to see if your credit card offers rental car benefits. In addition to discounts, free upgrades and other benefits, if yours provides insurance, you can decline this pricy add-on from the rental agency and make the reservation with your credit card.
Lost or stolen luggage? Your credit card could swoop in and save the day! Get reimbursed for lost items or emergency essentials if your card offers baggage insurance. Or maybe it gives you access to a lost luggage locator service, which can help you through the claim procedures.
In cases of medical emergencies when you are on vacation, your credit card could provide a welcome lifeline. Many credit cards include emergency transportation and medical referral assistance, or yours may even offer travel accident insurance.
Some credit cards shield recent buys with purchase protection, often reimbursing up to $500 on claims of damage or theft within 120 days.
Your purchases may be eligible for extended warranty protection. Many card issuers offer additional product warranties on certain purchases.
By using a credit card to pay for services such as landscaping or car repairs, you can dispute charges if you're dissatisfied with the work. This places the responsibility of proof on the service provider. While it's also possible to file a dispute with a debit card, the process may take longer to recover your funds.
Credit cards offer financial flexibility. Buy big now and align payment with your next paycheck.
Spot a better deal post-purchase? Some cards offer price protection. Just initiate a claim to recoup the difference.
Unlike debit cards, responsible credit card use actively builds or repairs your credit score.
Avoid interest charges and increasing debt by spending within your means and paying off your balance every month.
Get the best of both worlds! Enjoy the perks without the pitfalls by using your credit card for everyday purchases. Pay the balance in full every month to earn rewards and avoid adding to your debt with interest charges.
Keep funds available for emergencies. Owning a credit card can be a financial safety net, providing quick access to funds if you don’t have enough money in your checking account to cover an unexpected expense.
Keep in mind that not all credit cards carry all these perks. Be sure to thoroughly research your cards’ benefits before assuming you have the coverage.
*Loans on approved credit. Membership required—based on eligibility. Terms and conditions apply.
