Use Credit cards – maximize incentives

Many credit card companies offer incentives to use the card and other special features:

Rebates (money back) on the purchases you make
Frequent flier miles or phone-call minutes
Additional warranty coverage for the items you purchase
Car rental insurance
Travel accident insurance or travel-related discounts
Credit card registration, to help if your wallet or purse is lost or stolen and you need to report that all your credit cards are missing
Credit cards may also offer, for a price,

Insurance to cover the payments on your credit card balance if you become unemployed or disabled, or die. Premiums are usually due monthly, making it easy to cancel if the payments are higher than you want to pay or you decide you don’t need the insurance any longer.

Before you sign up to pay for any of these features, think carefully about whether it will be useful for you. Don’t pay for something you don’t want or don’t need.

Shopping around for a credit card can save you money on interest and fees. You’ll want to find one with features that match your needs. This information can help you to

Understand the features of credit cards
Compare credit card features and costs
Know your rights when using your credit card
File a complaint if you have a problem with your credit card

How will you use your credit card?
The first step in choosing a credit card is thinking about how you will use it.

If you expect to always pay your monthly bill in full--and other features such as frequent flyer miles don’t interest you--your best choice may be a card that has no annual fee and offers a longer grace period.

If you sometimes carry over a balance from month to month, you may be more interested in a card that carries a lower interest rate (stated as an annual percentage rate, or APR).

If you expect to use your card to get cash advances, you’ll want to look for a card that carries a lower APR and lower fees on cash advances. Some cards charge a higher APR for cash advances than for purchases.