If you plan to apply for a credit card sometime soon, remember that it’s a decision you should consider carefully. Your new card will definitely allow you to wield more spending power, but you should commit to making smart purchasing decisions and cultivating a strong sense of financial discipline—especially if you plan to keep more than one card in your wallet. In this post, as part of our finance tips, we’ll explore some key reasons that make a new credit card a worthwhile investment.
As long as you’re confident in your ability to manage your finances and control your spending, there are plenty of advantages that come with a new credit card. Below are the top rewards you can enjoy—and how to make the most of them:Â
1) Welcome Bonuses That Give You a Head Start
Many banks offer attractive welcome bonuses after meeting a minimum initial spend. These bonuses can come in the form of cashback credits, reward points, or airline miles.Â
Maximize this common benefit by planning your big purchases around the promo period. This way, you can qualify for the reward while spending on something that you have been planning to buy for a long time.
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2) Cashback on Everyday Purchases
Cashback is a popular credit card perk. This reward allows you to earn back a percentage of what you have spent on a purchase. Some cards may even offer higher rates for specific categories like groceries, dining, electronics, or petrol. Choose a card that rewards your regular purchases at specific stores or businesses to save money without extra effort. Read this to learn more.
3) Travel Perks for Frequent Flyers
If you are always on the go, there are certain cards that can make your trips more comfortable and affordable. Many travel-oriented credit cards offer perks such as free checked baggage, priority boarding, travel insurance, and access to airport lounges. Some even waive foreign transaction fees, making them perfect for international travelers. It’s best to use these cards for travel-related expenses, but always take the time to understand redemption rules.Â
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4) 0% Installment Plans for Big-Ticket Purchases
Some cards also allow you to convert big purchases into 0% installment plans. These installment plans allows you to spread out payments without interest, and they’re quite useful for big purchases such as home appliances or even settling school fees.Â
5) Exclusive Dining and Shopping Discounts
Lots of cardholders enjoy special discounts at partner restaurants, malls, and online stores. If you frequently shop or dine at these establishments, you can enjoy these exclusive and instant savings. Always check your bank’s promotions to see the establishments where your card can let you enjoy preferential rates and discounts.
6) Fuel Rebates for Drivers
If you own a car, using a credit card with fuel rebates can help you cut down on gas expenses. Some banks offer higher rebates when you fill up at partner stations. Use this benefit by refueling at designated stations and paying with your card.Â
7) Free Travel and Purchase Protection
Premium credit cards often include travel insurance—which protects you from trip cancellations, lost baggage, and medical emergencies—when you book using your card. Some also provide purchase protection, which offers refunds or replacements for damaged or stolen items. Give yourself peace of mind by exploring the coverage details of your travel and purchase protection.Â
8) VIP Access to Sales and Events
Many credit card programs provide priority booking or exclusive access to lifestyle events such as concerts and sporting activities. Some even offer pre-sale tickets before they’re available to the public. If you enjoy these types of events, use your card’s benefits to guarantee your entry or get the biggest discounts.
9) Concierge Services and Lifestyle Perks
High-end credit cards often come with concierge services that get you restaurant reservations, travel bookings, and other perks. These programs also typically offer benefits like spa discounts or golf privileges. If you enjoy luxury experiences, these benefits can enhance your lifestyle without extra costs.
10) Balance Transfer Options for Debt Management
If you’re carrying debt from another card, some banks offer 0% or low-interest balance transfers. This allows you to consolidate your payments and save on interest. Such an option may be great for managing debt, but make sure to pay off the balance within the promo period.
11) No Annual Fees for Long-Term Savings
Finally, some cards offer no annual fee for the first year or even permanently if you meet certain spending amounts. To avoid extra charges, select a card with a waived or low annual fee and use it regularly to keep the waiver active.
Make the Most of Your Rewards
While these perks can make owning a credit card a rewarding experience overall, the key to maximizing them is responsible spending. Always pay your bills on time, stay within your budget, and avoid unnecessary debt. Ultimately, if you use your card wisely, you’ll be able to enjoy all the benefits without the financial pitfalls.
Danella Yaptinchay is the managing director of Full Suite, a service company providing back end support to small businesses. She is a cofounder of Co.lab, a coworking space, and of the media company Homegrown.ph. In constant pursuit of balance and self-development, she tries to apply the practices of yoga to her daily life.
