What are the benefits and features of a credit card? In this article, we’ll discuss the major advantages and disadvantages of a credit card and how you can choose the right one for your needs. From no balance transfer fee to price protection, and liability guarantees to free checked bags, you’ll be able to make a smart decision based on the facts. Hopefully, this article has helped you decide which card to apply for.
Price protection:
Price protection is a benefit of Chase Sapphire Preferred cards. If you make a purchase at a store that offers price protection, you can file a claim with the card issuer to get the difference in price refunded. However, if the price drops significantly after you’ve purchased the product, you may not be eligible for price protection. In this case, you should keep track of prices and file a claim within the specified time.
However, price protection may not be the most appealing perk of a credit card. It’s a cumbersome process that may discourage some consumers from availing of it. In the end, credit card issuers may decide to remove price protection completely from their offers. However, there are still ways to get the most out of your credit card by taking advantage of its other benefits and earning rewards.
No balance transfer fee:
There are many reasons to choose a no-balance transfer fee credit card over a card with a balance transfer penalty. In some cases, you may be able to offset the fee by spending more early on the card or by paying a lower introductory APR rate. Other times, it may be best to keep your current debt where it is and pay it off as quickly as possible. Also, interest calculations are estimates and your actual finance charges may vary.
When choosing a no-balance transfer fee credit card, you should consider the length of introductory interest periods offered by each company. The longer the introductory interest period, the more money you will save. Another important feature is the balance transfer fee, which is typically three percent of the balance transferred with a $5 minimum. However, some cards charge a higher amount. Once you determine the length of the introductory interest period and minimum fee, it’s time to make a decision.
No liability guarantees:
No liability guarantees of credit cards depend on a person’s ability to report fraudulent charges to the credit card company quickly. Most card issuers offer 24-hour monitoring, with different parameters for flagging suspicious activity. They will contact you by phone or send you secure messages requesting confirmation. Then, you must dispute the charge within 60 days to be protected under the FCBA. However, this protection is not as robust as the protection provided by a corporation.
Businesses looking for a no liability credit card may be interested in one. Because the business owner is not personally liable for the debt, the credit card company can’t pursue personal assets, such as a house, car, or other assets. However, business owners are typically not eligible for credit cards without personal guarantees, and meeting the additional requirements may make it difficult to obtain one. No liability credit cards have fewer perks and rewards, and may not be available for sole proprietors.
