Affinity cards offer more than just a convenient payment method. You should be made aware of several additional benefits. This article delves into five lesser-known advantages of using a credit card. So, discover how Affinity cards can enhance your financial well-being!
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1. Cashback Rewards: Putting Money Back in Your Pocket
Many cards offer cash-back rewards for your spending. Every time you use your affinity card for eligible purchases, you can earn a percentage of the amount spent as cashback. This money is credited back to your credit account or deposited directly into your bank account. It’s like paying for your regular expenses!
Cashback rewards vary depending on the card and the type of purchase. Some cards offer a flat cashback rate on all purchases, while others provide higher cashback percentages for specific categories like groceries, dining, or gas.
2. Purchase Protection: Safeguarding Your Purchases
One of the often-overlooked benefits of using credit money is purchase protection. When you purchase with a plastic card, you are often covered if the item is lost, stolen, or damaged within a specified timeframe. This means you may be eligible for reimbursement or replacement coverage, providing peace of mind when purchasing.
For example, if you purchase a new electronic device that gets damaged accidentally within the coverage period, your card’s purchase protection may offer repair or replacement coverage.
3. Travel Rewards: Exploring the World at a Discount
If you love to travel or dream of a memorable vacation, a travel rewards card can be your best companion. Many affinity cards come with travel rewards programs that allow you to earn points or miles for your spending. These rewards can then be redeemed for discounted or even free flights, hotel stays, rental cars, and more.
Travel rewards cards often offer sign-up bonuses, where you can earn many points or miles after meeting a spending requirement within a specified time.
4. Building Credit History: Opening Doors to Future Opportunities
Using an affinity card responsibly is an excellent way to establish and build your credit history. By making timely payments and maintaining a low credit utilization ratio, you demonstrate your creditworthiness to lenders. This can be crucial when applying for future loans or mortgages. By consistently using your card and paying off the balance, you can strengthen your credit profile and open doors to better financial opportunities.
As the experts at SoFi point out, “Members earn 2 rewards points for every dollar spent on eligible purchases. If you elect to redeem points for cash deposited into your SoFi Checking or Savings account, SoFi Money account, or fractional shares in your SoFi Active Invest account, or as a payment to your SoFi Personal, Private Student, or Student Loan Refinance, your points will redeem at a rate of 1 cent per every point.”
5. Enhanced Security: Protection against Fraudulent Activity
Affinity cards offer enhanced security features that can help protect you against fraudulent activity. Most credit companies monitor your transactions for suspicious or unauthorized charges and provide fraud liability protection. If your card is lost or stolen, you can report it promptly, and your liability for fraudulent charges is often limited. Plastic money gives you an added layer of security and peace of mind regarding your finances.
Affinity cards offer more than just a convenient way to make purchases. They come with several additional benefits that can enhance your financial well-being. From cashback rewards and purchase protection to travel rewards and the opportunity to build your credit history, cards provide added value to your financial life. Plastic money offers enhanced security features that protect you against fraudulent activity. So, the next time you reach for your affinity card, take advantage of these hidden benefits and make the most of your financial journey.