Credit Card Benefits

Pulling out a credit card to make a purchase is not always a financial sin. Credit cards offer some protections that may help you in certain situations. For instance, if you dispute a charge on your bill because the merchant didn't deliver or the product was defective. If trying to work the situation out with the merchant doesn't solve the problem, contact your credit card company and file a dispute on the charge. You won't be responsible for the disputed charge until after the credit card company has contacted the merchant and you are satisfied. You may get the charge cleared if the dispute is settled in your favor.

Many credit cards offer other useful benefits, such as coverage for the insurance deductible on a rented car. Rental companies always ask for a credit card when hiring out vehicles, so read through your account details and see if any of your cards offer you this protection. If so, that's the card to use.

It's always a good idea to read the fine print to find out what penalties and interest the card company can charge and what changes they are allowed to make. But while you're doing that, don't forget to look for the benefits as well, you may be pleasantly surprised.