5 credit card perks that can help you fight inflation

Like the prices of goods and services keep going up due to inflation, reduce expenses it’s not the only way to release cash to cover essentials.

Credit cards can include valuable benefits for new applicants, whether your goal is to pay off debt or save costs. Even if you already have a card, you may be sitting on specific offers, rewards, or benefits that could make a difference.

Here are some ways to maximize the value of a credit card.

1. Presentation offers

If you have good credit (a FICO score of 690 or higher) and a significant expense, consider financing it with a credit card that offers a 0% annual introductory percentage on purchases and a registration bonus. As long as you pay the balance, you will save on interest and potentially recover some of the cost of the purchase with this bonus.

If you have good credit but want to pay off your existing debt, a balance transfer credit card can reduce your costs. It allows you to transfer high interest debt from another issuer and pay it at a lower interest rate, ideally at a 0% APR over a period of time.

“There’s going to be a (balance transfer) fee, so you have to buy a lot of times,” said Melissa Cox, a certified financial planner and advisor to Fetterman Investments, a Dallas-based financial planning firm.

Aim for a commission of 3% of the balance transferred or less. Compare this rate with the cost of long-term interest payments on your current card to determine which option saves you the most money. If the balance transfer makes sense, make a plan.

“If you know the transfer will be six months before they start charging interest, you want to have a plan to pay off most of that debt in those six months,” Cox said.

You can usually find promotional periods for balance transfers that are less than two years old. And you may not need to apply for a new credit card to reach this agreement – some card issuers offer balance transfer offers to existing cardholders.

2. Buy now, pay later options

Some major issuers have built-in “buy now, pay later” options on their credit cards that allow you to pay eligible purchases in installments for a fixed rate or interest rate.

The predictability of these types of payments can make the budget easier for them, and these plans could save you money if your rate or interest rate is cheaper than your card’s normal APR. Plans do not require a credit check, and in general, you can still earn rewards on purchases if your card offers them.

3. Rewards on purchases

A credit card that offers a 2% reward rate on all purchases (or 3% or more in specific categories) can help reduce the pain of rising prices.

For example, suppose you spend $ 500 a month on the grocery store. A credit card that earns 5% in groceries could charge you $ 25 in rewards each billing cycle. Over the course of a year, that adds up.

If your current credit card doesn’t have rewards for frequent spending categories, such as gasoline, food, or groceries, consider one that best fits your spending.

4. Specific discounts for merchants

Some major credit card issuers offer discounts or rebates when you use a credit card to shop with specific merchants in categories such as daily shopping, gifts, and travel. These one-time offers can be found in your account or email, and you’ll usually need to “activate” them or add them to your card.

You will get more value if the eligible credit card also earns rewards with the purchase.

5. Benefits

Money-saving benefits such as cell phone insurance may be in your wallet. You can get coverage for damaged or stolen devices up to a maximum amount when you use cards with this benefit to pay your monthly bill. There is usually a small deductible and terms are usually applied.

For Tony Florida, the primary account holder for your family mobile phone plan, the savings from your credit card’s cell phone protection benefit add up. If you pay your cell phone provider for protection, it could cost $ 14 or more per device per month. Mobile phone repairs can also be expensive. When his sister dropped the phone and broke it, he filed a claim using the benefit of his card, paid the deductible, and was reimbursed.

“They just gave me a credit statement for the estimated cost of the phone,” said Florida, who is also a content creator for YouTube channel Thrifty Tony. “It was like more than $ 500 was reimbursed to us.”

The claims process is a bit awkward, according to Florida, but he said it’s still worth it, as you don’t have to pay extra money for that benefit.

If your card does not have this advantage, you may have others. For example, you may have price protection, which reimburses the difference in price of an item that is advertised at a lower price elsewhere. To find out what benefits your credit card offers, please contact the issuer or sign in to your account.

This column was provided to The Associated Press by the personal finance website NerdWallet. Melissa Lambarena is a NerdWallet writer.

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• Inflation