Different credit card providers offer different perks to attract customers. Learn about all the options available to you to make the most out of being a credit card holder.

If you’re looking to save money, build a credit history and secure your financial health, credit card is an excellent option. Signing up for a credit card comes with several perks, depending on the financial institution you get it from and the type of card you get. However, there are some common benefits that come with almost all kinds of credit cards. Let’s look into the common credit card perks to help you make a good decision.

1.  Cash back

Cash back are the easiest to understand and to redeem. These rewards are one of the important reasons why more and more people make everyday purchases with credit cards. With cash backs, you get back a small portion for every purchase you make. Different credit cards offer different cash backs, with some of the best ones offering 5%. So instead of paying your balance in full at the end of every month, think of it as paying 5% less than you owe the credit card company.

2.  Points

Another excellent feature available in many credit cards is points, or reward points. It’s almost as simple as cash back. Credit cards typically give points for the the money spent, usually at the rate of 1 point for every dollar spent. They may give you 2x or 3x points on certain types of purchases, for example hotel bookings or airline tickets. If you’re a frequent traveller, you can accumulate enough points from your travels to enjoy a weekend getaway without spending a single dime!

3.  Miles Reward

Many credit cards offer air travel miles if you make travel-related purchases with them, including airline ticket, lodging, car rentals etc. Once you earn enough mile rewards, you can redeem them anytime to cover your lodging or airline tickets. If you’re a frequent traveller, you might want to keep this perk in mind when choosing a credit card for yourself.

4.  Protection Plan

The best credit card providers offer a range of protection plans with their credit cards. Read the credit card agreement carefully to understand the kind of coverage the credit card comes with. For example, some credit cards come with Collision Protection, which covers the damage on rental cars in case of an accident. Some come with cellphone insurance to cover the replacement for a stolen or broken cellphone. However, there’s often a limit on the amount offered for this protection, which will be detailed in the agreement.

Conclusion

Being a credit card holder comes with its perks. However, spend time on carefully researching the options before you choose to go with one. Choose a credit card that offers perks that are most beneficial to your lifestyle.