Believe It or Not, Credit Cards Can Save You $$$

In this tough economy, it's taboo to encourage credit card usage. I agree. Cash is king, but credit card companies offer some benefits that cash doesn’t. With a lot of discipline and some strategic planning, your credit card will actually save you money.  Of course, every credit card is different so reading that annoying booklet of fine print on your existing credit card is very important.  

Here are only some ways to save big money with credit cards:

Rewards Points. Charging burgers, groceries, major appliances and even tuition will provide you with thousands of reward points that can be utilized for free vacations, including round trip airfare, car rentals and hotel rooms. Not in the mood to travel? Spend your points on gift cards for specific electronic purchases or simply cash out for some greenbacks. Heck, even holiday shopping will be a breeze if you have enough points racked up—free products are only a few clicks away. It’s all legit and free to you. 

Free Travel Insurance. Every time you book a trip or airfare, you are offered travel insurance. It is a great idea but can cost as much as 10 percent of the trip's total cost, which can add up to big money. Many credit cards offer the insurance free as long as you charge the trip to their credit card. It’s a win-win! 

Luggage Damage/Lost Luggage. Airports don’t cover the cost of damaged suitcases or lost luggage as easily as they used to. But mutilated suitcases are no longer a potential negative on your travel budget if you have a credit card that provides insurance for your luggage and its contents if they are lost or damaged when you travel. 

Free Extended Warranties. Many credit card companies offer a full year of free extended warranty protection on your purchase. Why pay $50-plus on extending your insurance for one year when you already get it for free? Think about all those damaged toys, computers and even your cellphone. Charge them to a credit card that offers the free warranty extension—and you're covered.

Price Protection. Your flat-panel television purchase made in a haste can land you in the hot seat when your spouse notices you could have saved $50 by buying it at a different store or waiting for it to go on sale. Price protection offers a rebate option for those willing to send in a copy of the sales receipt, credit card statement and a sales flier. Ca-ching!     

Purchase Security. Ever buy a cellphone and then drop it in a puddle? Or have it stolen before you've even added your friends' numbers? Items bought on a credit card that are damaged by water, fire, smoke, rain, snow, etc., are repaired or replaced for free within a specified amount of days from your purchase. Purchase security also covers theft of an item charged to your card within that same amount of days. Admittedly, claim procedures are a little trickier in this area but if it saves you hundreds, the effort may be worth it.

Emergency Travel Insurance. If you ever find yourself off the beaten path in your foreign travels and need emergency translation service, ticket replacement, medical referral, transportation or even some legal referral service, look no further than the 800 number on the back of your credit card -- if you charged your trip to the credit card. Can you put a price on peace of mind?

And finally... 

Auto Rental Collision Damage Waiver. Renting a car inevitably brings on the hard sell for the rental company's insurance coverage. Even if you carry your own insurance, why let the claim of a rental car follow you around forever? Some credit cards, like Visa Signature, offer free insurance as long as you charge the car to their card. This bennie will save you upfront money, plus the possibility of inflated insurance premiums for the next three years.

There are more benefits readily available to credit card users and I would love to hear your success stories. Read your fine print and share your awesome benefits.