Plastic money has become ubiquitous in modern society, with many types of cards on the market. Consumers can find a credit card that suits their needs and lifestyle. This article discusses five lesser-known benefits of using plastic money.

Fraud protection

Plastic money provides fraud protection, a significant benefit that most people are unaware of. Fraudulent activities can occur in various ways, including losing or stealing a card. In such cases, credit companies are usually quick to investigate and reverse any fraudulent charges made on the card. This can be a massive relief for the cardholder, as they do not have to bear the financial burden of unauthorized transactions. Additionally, most card companies have advanced fraud detection systems that monitor your card’s usage patterns and can alert you if they detect any unusual activity. This can help you to act quickly to protect yourself from potential fraud before it becomes a more significant issue.

Extended warranty protection

Another lesser-known benefit of using credit money is extended warranty protection. Many cards offer this protection for purchases made with the card. In addition, the credit company will provide an extended warranty if the manufacturer’s warranty expires. This can be especially useful for expensive items that can be costly to repair or replace.

Extended warranty protection can save you significant amounts of money in the long run. Without this protection, you may have to pay for costly repairs or replace an item entirely if it breaks outside the manufacturer’s warranty period.

Cashback and rewards programs

Cashback and rewards programs are lesser-known benefits of using a credit card. Many cards offer cashback or rewards points for purchases, redeemable for cash, gift cards, or other items. Some cards offer bonus rewards for specific categories, such as travel. Using your card for everyday purchases can accumulate reward points, adding significant savings over time.

Rental car insurance coverage

When renting a car, rental companies will typically offer additional insurance coverage for an additional fee. However, many cards offer rental car insurance coverage as a standard benefit. This coverage can include collision damage waiver (CDW) and theft protection, potentially saving you hundreds of dollars in additional insurance costs. To take advantage of this benefit, use your card to pay for the rental car and decline the rental company’s insurance coverage.

Price protection

Finally, many cards offer price protection as a benefit. For example, if you purchase an item with your credit money and later find it advertised for a lower price, the card company will refund the difference. This can be especially useful for big-ticket items such as appliances, where prices fluctuate.

SoFi experts explain about repaying your credit bills, “You can set up auto-pay right away, but if you want to make a one-time payment, you can do so anytime in the app.”

Credit cards offer many benefits beyond convenience and building credit. From fraud protection to cashback rewards and extended warranty protection, plastic cards can provide significant financial benefits for responsible users. However, using plastic money responsibly is important, paying off balances in full each month to avoid interest charges and fees. By understanding the lesser-known benefits of credit money, you can maximize the benefits of this financial tool and potentially save hundreds of dollars over time.