WhyUseCredit.com -

• Chase: featured credit card issuer
  

  There are a number of good credit card issuers. In this post I list some of the cards available from Chase:

  • Chase Business Rebate Card
  • Chase Flexible Reward Platinum Visa® Card
  • Chase Freedom Cash Card
  • Chase Free Cash RewardsSM Card
  • Chase Platinum Visa® Card
  • Chase PerfectCardTM MasterCard
• Free Extended Warranties Provided by Credit Card Issuers
  

  Save money by avoiding overpriced store-bought extended warranties!

  Electronics and department stores push extended warranties heavily because they are pure profit centers for the retailers. What you may not know is that simply using a credit card can get you extended warranty coverage at NO cost. For all cards, you must usually charge the entire purchase on the card (that means no use of giftcards for partial or full payment). And again, all CCs differ, so call your issuer to verify your coverage, but most tend to follow this basic formula dependent on card type:

  • AMEX will double warranty (up to 1 extra year) on items with manufacturer warranty of 5 years or less. AMEX seems to have easiest claim process. They would be my #1 recommendation if you are looking for extended warranty protection. However, the other issuers, especially Visa, have some interesting features.
  • MASTERCARD will double manufacturers warranty on products with manufacturer warranty of 1 year or less. No extra coverage for items with manufacturer warranty over 1 year.
  • VISA will double warranty (up to 1 extra year) on items with manufacturer warranty of 3 years or less. VISA is the only major issuer to include factory reconditioned items as part of their double warranty. Visa also has a program to purchase an extended warranty plan, at a cost which is usually less than a store-bought extended warranty. Its called the Visa Performance Guarantee and details can be found here.
• Free Rental Car Insurance Provided by the Credit Card Issuers
  

  Know which card to use before you use it!

  Most personal credit cards provide secondary coverage (you must first file a claim with your auto insurer). The coverage is only for damage to the rental car, not liability if you injure someone or damage someone else's car. The exception to "secondary CC coverage" is with the traditional Diners Club card, and most business Platinum Visa and MasterCards, where rental damage coverage is primary (no need to file claim with auto insurance).

  Cargo and moving vans are never covered by CCs. Some SUVs are covered by Visa MasterCard and AMEX. Trucks are covered by AMEX Open Business cards only on a secondary basis beginning October 1, 2006. Check with your CC to confirm current coverage.

  The following excerpts from Ed Perkins, sfgate.com are particularly helpful. He notes the following:

  Many versions of American Express, MasterCard and Visa offer no-cost collision coverage when you use one of their cards for the rental. But card coverage isn't as foolproof as it sounds. American Express and MasterCard cover Loss Of Use only if they can get car logs from the rental company. Because some rental companies, including Hertz, do not provide that information, you may be on the hook for a stiff additional charge if you rely on your credit card.

  Visa says compensation for each LOU claim is evaluated on the specific circumstances and merits of the claim. The policy's underwriter will work hard on behalf of the cardholder to reach a fair and equitable settlement such that the LOU amount is considered reasonable and therefore covered by the policy. American Express and MasterCard, on the other hand, say they do not pay LOU charges unless the rental company provides a vehicle log. Because some rental companies - including Hertz - say they do not and will not share that information with the card issuers, presumably renting with either of those cards risks not being compensated.

  What's happening? Rental car companies hate credit cards'"free" CDW: They wish it would disappear because it deprives them of a very fat profit. Unless you're sure your rental company will provide fleet logs, you'll be better off with Visa than either American Express or MasterCard (including Diners Club).

  Quick recap: All Diners Club cards, most Visa cards and some MasterCards include some form of rental-car damage coverage at no additional cost. Most credit card coverage is secondary, meaning that the card picks up only what you can't first recover from your regular auto insurance. Only Diners Club and a few versions of the other cards offer primary coverage, where the card picks up the bill no matter what other insurance you have.

  Avis and Budget (jointly owned), like Hertz, do not provide vehicle use information to credit card issuers. Alamo, Enterprise and National (also jointly owned) do provide such information. If you opt for using a card, you can apparently lower your risk (1) by renting only from Alamo, Enterprise, National or some other company you know supplies credit card issuers with the required information and (2) by using a Visa card. At the other end of the spectrum, if you rent from Avis, Budget or Hertz with an American Express or MasterCard and the car is damaged during your rental, you'll almost certainly be hit with a loss-of-use charge your card won't cover.

• Welcome to WhyUseCredit.com
  

  Welcome to WhyUseCredit.com. The credit card is the most powerful tool in the savvy consumer's wallet.

  Safer than cash, with a host of free benefits, credit cards have come a long way from the ones your parents used to use. Today's intensely competitive credit card market has resulted in a host of consumer friendly benefits, that makes using them responsibly the smartest move when making purchases.

  Now I know the average American carries large credit card balances and pays high interest charges. But for those who pay their bills in full each month, its possible to pay NO charges at all. Some so-called finance experts such as Dave Ramsey advocate only using debit cards, but the financially prudent option is to always use a credit card rather than a "visa/mastercard labelled" debit card... especially when making purchases online and from lesser-known merchants.

  Why? Numerous reasons. From the free grace period on purchases, where you pay no interest if your bill is paid on time and in full, you can get numerous other benefits. Namely:

  • cashback rewards,
  • frequent flier miles,
  • free insurance,
  • extended warranties, and
  • other protections.

  I will touch upon these benefits in greater detail in upcoming blog entries.

  Aside from the free benefits credit cards offer, there are many more reasons to use a credit card over a debit card from a safety and security perspective... Say someone starts making fraudulent charges... If they have your credit card #, you contact the Credit Card issuer (always send your dispute in writing) and you'll never have to pay the disputed charges. The money never leaves your pocket... But with a debit card, the thief can wipe out your bank account, which can have the ripple effect of causing outstanding checks you have written to bounce, getting insufficient funds/other negative marks on your mortgage and car loans, returned check charges, etc. So even though debit cards often claim that you are not responsible for unauthorized charges, the practical effect of what happens is much more troublesome with a debit card.

  Of course, it needs to be repeated that using credit cards makes sense only when you are responsible. If you pay the card off in full every month (to avoid any finance charges), its all upside.