I bet you didn't know all the things credit card companies offer nowadays!

1. There are:

Rewards cards that give you cash back or rewards like AirMiles.

Auto and gas cards where you can earn rewards that can be redeemed towards the purchase of a new or used car, car-related expenses or merchandise.

Airline cards that offer frequent flyer programs

Business cards for both small business owners as well as corporate executives that can help to keep your company's expenses on track.

Student cards designed for high school and college students

Balance transfer cards that allow you to consolidate your debts onto a single card to save money on interest charges.

Cash back cards that offer reward programs that give you cash back. Generally, for these types of credit cards, you must have a good-to-excellent credit rating.

Instant approval cards where you can apply online and, if qualified, usually receive notice via email of your acceptance within seconds of completing an online credit card application. Again here, you usually must have good to excellent credit.

Low interest cards that provide either a low fixed-rate Average Percentage Rate(APR) or a low introductory APR.

2. Some have an annual fee and some do not. Fees can range from as little as $25.00 to as much as $120.00. Usually, the more benefits you get, the higher the annual fee.

3. They also have many types of insurance/warranty coverage when you use your card to make these purchases. Here is a list of the most popular and examples of what they cover, depending on the card you choose:

Car Rental
o covers accident damage or theft when you rent a car, up to a certain dollar value.

Travel Accident
o covers accidental death and dismemberment when you, your spouse or your dependent children travel.

Trip Cancellation
o covers trip cancellation or interruption if you or your immediate family is sick, injured or die. You, your spouse or your dependent children can claim benefits up to a certain dollar amount per person and up to a maximum per trip.

Baggage Loss Protection
o covers loss or damage to your baggage and personal effects while you are in transit, up to a certain dollar amount.

Extended Warranty
o protects purchases made with your credit card against accidental damage and theft for a specified period of time.
o extends the original manufacturer's or store brand warranty

Purchase Protection
o covers the repair or replacement of your purchases, up to a certain dollar amount.

Travel Medical
o covers, up to a certain dollar amount, some medical expenses when you travel. These expenses could include: medical consultation charges, hospitalization charges, ambulance service fees, etc. Your spouse and any dependent children may also be eligible for benefits when traveling with you.

Flight Delay
o covers reasonable and necessary hotel, motel or restaurant expenses, up to a certain dollar amount, when your flight is delayed or you are denied boarding for a period of time, and no alternate transportation is available. Your spouse and any dependent children may also be eligible for benefits when they travel with you.

Roadside Assistance
o usually auto club membership which generally include road side assistance and auto discounts. This insurance is usually only available if you pay an additional fee.

So, really investigate what each card offers and what you really need. If you get some of these benefits from your employer, you don't want to spend extra to get them from your credit card company.

Likewise, if you don't travel a lot, you don't want to pay for all these travel benefits.

4. Most credit card companies have another important benefit called Zero Liability. This means you are not held responsible for unauthorized purchases that are made with your credit card. Zero Liability applies to purchases made in the store, over the telephone or online. There are usually a few preconditions such as:

Your account must be in good standing.
You exercised reasonable care in safeguarding your card
You have not reported two or more unauthorized events in the past 12 months.

Check with your credit card company to see if they have other preconditions or exclusions to this benefit.

Speaking of liability, one of the ways I use to control/prevent fraud is to have one card for my purchases from retailers that I am completely comfortable with and another card for purchases from retailers I am not sure of. For example; in our area, credit cards are often cloned at the local corner store and gas station. So, I use one card solely for those types of purchases. That way, if that card gets cloned or has fraud on it, it only affects those types of minor purchases. Another example; if you are not comfortable making online purchases with your main credit card, get another one just for those types of purchases.

It is also good for your credit score to have more than one credit card, if you pay your bills ON TIME. Use each card at least once a month.

And a few last words about liability:

Never give credit card numbers of other banking info over the internet - even if it looks like it comes from the bank - they do not do this. Nor on the phone if they call you. Call them back to ensure it is a legitimate call.

Check your statements - even check them online regularly.

Credit card fraud affected approximately 11.1 million people in the U.S., in 2009.

So, in conclusion, find out all the benefits your credit card company offers as you may be paying for more than you need or want. Or, you may not have the coverage you think you have. It may be tedious to read all the paperwork that comes with your card but you should be informed if you are to be a responsible consumer. Owning credit cards requires responsibility, maturity and knowledge.

There are many sites online that offer you the chance to compare cards so take advantage of this and do your homework. You will be glad you did.

And to help you achieve financial success by first discovering how to do a budget, I invite you to claim your Free 4 Day Email Mini-Course at: http://www.LifeContinuesAfterDivorce.com
Because we all deserve to be financially free.
From Carol Ferguson - Your Friendly Budget Gal and LifeContinuesAfterDivorce.com

Author's Bio: 

My name is Carol Ferguson and I am a divorced mother of 2 wonderful children. I worked many years for a large corporation and now I am an entrepreneur with a number of businesses, a house that is paid for, an abundant retirement savings plan and many other financial freedoms. I also have helped someone get out of serious debt, owing money to loan sharks, the government and many others. We did this together and this person is now free from debt, follows a budget and is no longer afraid to open the mail.

I help people who have gone through, or are going through divorce, or other events where they are now the single head of the household and need financial help. I give hints, tips and advice on how to easily manage their daily finances to enable them to pay their debts, save for their future and become financially free.

I want to help others who are struggling with money issues. I know what it is like and I want to let them know that they can succeed at the money game.