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However, if used correctly, a credit card can actually save you a boatload on an extended warranty and protect your purchase for longer.

2) Rewards/Cash Back Program

Most people spend a lot of money on certain items like gas and groceries. I always opt for cash. If you spend 0 every month on groceries and get 2% cash back, why not take the that’s on the table every month? Do you want frequent flyer miles? This feed is provided for the convenience of Moolanomy’s subscribers. One such rationale is that the credit card companies act immorally by preying on the “weak” who fall into the trap of credit. Or, my favorite, cash? Movie tickets? Trinkets like coolers and tie racks? The rewards argument is very strong in these cases. A chargeback is when a consumer requests that their card/issuing bank forcefully reverses a prior outbound transfer. (Don’t abuse this!)

Are Credit Cards Worth It?

Hopefully these benefits of using a credit card will prove to be beneficial to you. I’ll address those issues throughout the article.

Photo by Paalia via Flickr

Three Benefits Offered By Your Credit Cards

Often times people overlook the protections they are offered by using credit cards.

1) Warranty Extension

One of the most dreaded lines at Best Buy, for me at least, is “Would you like a service plan with that?” Or maybe my most dreaded line is the third time they’ve asked it even after I mentioned the fact that my credit card automatically extends my warranty.

Not all credit cards offer this protection, though. You realize Best Buy was scammed by a previous person so you go back with your receipt to return the item. Just make sure you aren’t paying too much for credit because of your habits.

Does anyone have any more solid benefits or downfalls?

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This post was written by MLR (Staff Writer)

Do you have a financial question? You betcha! And what if it was something more serious than an iPod and you needed to go purchase one as you waited for your money to clear, thus tying up twice as much money. Your personal money would have been tied up as the dispute process waged on. I spend 0 on gas every month and get 3% back. Ask it now at Moolanomy Answers!

Copyright © 2007 - 2009 Pinyo B. The mere mention of a chargeback may have the opposing party singing a different tune in a matter of seconds. Another rationale is that it encourages bad decision making because of the disconnect between plastic and cash. But if you pay your card off every month, are they profitable? Your credit card will reverse the payment as the dispute process works out.

What would have happened if you paid with cash or debit? Oh, and during the dispute process…you wouldn’t have had a multi-billion dollar company on your side.

Winner? The Consumerist writes about these often, here is their archive for just the term chargeback.

When would you ever need to do this? Say you buy an iPod from Best Buy. That is better in my pocket than in the credit card companies coffers. They obviously make money on interest charges and fees from people who carry balances. Wait, what do you do? Sure, for a few minutes.

In the past few weeks, I’ve been reading some articles, along with their comments, about people cutting up their credit cards. When you get home you find out that the box has a wad of paper mache in it. If you know you will use the frequent flyer miles or another option, though, and monetarily it makes more sense…by all means, go with the points!

Smart Money did a good analysis that broke down different card’s rewards programs showing how much you are actually paying per point when all is said and done.

3) Chargeback

A lot of people aren’t familiar with this term. However, Best Buy says they can’t accept the return since they don’t know if you’re actually the scammer. And even if it were, the immorality of the situation is questionable. I mean, I can always buy a tie rack if I really want one. Otherwise, the cash will do just fine! Any questions should be directed towards the credit card company (Visa, MasterCard, American Express, Discover Card, etc.), not the issuing bank.

Do not assume that you are not eligible just because the card member agreement makes no mention of the warranty. Call the company to be sure.

Warranty Info & Phone numbers to check eligibility:

VISA (USA) – Doubles the time of the manufacturers warranty up to 1 year as long as the original warranty is 3 years or less – (800) 882-8057
MasterCard (USA) – Doubles the time of the manufacturers warranty as long as the original warranty is 1 year or less – (800) 622-7747
Discover (USA) – Doubles the time of the manufacturers warranty as long as the original warranty is 1 year or less (Unverified) – (800) 347-2683
American Express (USA) – Doubles the time of the manufacturers warranty up to 1 year as long as the original warranty is 5 years or less – (800) 225-3750

Once you find out whether you have warranty coverage, there are a few pointers I have for you: You must charge the amount in full to the credit card, keep documentation for proof of purchase (invoice, cc receipt, warranty printout), keep a copy of the current card member agreement, keep the card active even if you don’t use it.

This is all a moot point if you are the kind of person who will wind up in a shopping rehab when you get a hold of a credit card. You can usually read through your card member agreement (that long document they send every so often when they make changes) and it will make some mention of a warranty program. That’s what merchant fees are for! Wait and hope they change their mind? But if they don’t come around — issue a chargeback. So the existence of reward programs is not solely contingent on other people getting hurt, per se. I guess that all falls back to personal responsibility.

One important thing you need to consider is what’s most important to you. There are multiple rationales behind this decision. Some credit cards offer back as much as 5%!

The first thing to understand is how credit card companies make money. You are not allowed to reproduce the content within this feed in any manner.

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Credit cards. It is the ultimate consumer protection.

Posted under Credit Repair