Regardless of which side of the story you are in, there are some important things that you don’t know about your credit cards that will help maintain your credit score, or help you recover from your credit woes.
Credit cards provide a readily available access to the things you want to buy. But there’s more than just that. Credit card companies offer points and rewards for using your card to buy your stuff and frequent flier miles for using the card to purchase your plane ticket.
Other card companies offer additional rewards such as extended warranties on selected items, protection plan against damage or theft, a few options for insurance, and roadside assistance program. Some cards even offer automatic enrollment to a purchase protection program once you use your card.
Remember to redeem or cash out your points immediately. As soon as you have accumulated enough points, make your account work for you.
Aside from perks, you should also be aware of your inherent rights as a card holder. First, if you are prompt with your payment, you have a great chance to get a lowered interest rate. Ask your account manager for that possibility.
Second, you have the right to ask for assistance during financial difficulties. When it becomes apparent that you can’t make good with your payments because of some illness, problem with other loans, or employment termination, contact your creditor and make the necessary arrangements. Credit negotiation is your right and should provide you some leverage during financial distress.