Credit Card Freebies

Most people don’t realize they have access to credit card freebies. They simply use the credit card without enjoying many of the extra services that come with it. Credit Card freebies may also be called “credit card perks” or “credit card benefits”. Credit Card freebies can be worth up to $1,000 per year.

Before proceeding to discuss some of the freebies that are available with credit cards, its necessary to discuss the dangers of credit cards. In 2006 Americans owed more than $1 trillion in credit card debt, which is an average of $8,377 per household. Obviously, credit card companies can offer freebies because they’re making so much stinkin’ money. When an individual holds credit card debt at interests rates between 14-24%, it can be financially devastating. It’s like the individual is caught in a never-ending swirling vortex of terror that always leads downward. Actually, the swirling vortex may not be a good metaphor because that implies that the danger is fast, when it isn’t. It happens slowly, day in, day out, even when you’re sleeping, it’s burden that is always creeping on you.

If you are an individual that has any credit card debt or any financial problems, then just avoid credit cards altogether. Tackle it now, pay it off, get it off your chest. You can’t own credit cards if they own you. Those who really own credit cards, not just possessing the card, but owning it, do not carry any credit card debt. They only use the card to spend money that they already have; they pay it off in full every month to avoid credit card fees. If that’s too complicated, not convenient enough or too easy to forget, then don’t get involved or get un-involved as quick as possible. Because if you ever have to pay any credit card fees, the freebies listed on this page are NOT actually free. They will end up costing you big time.

Free Short-Term Personal Loan

Those who pay off their credit card every month and avoid credit card fees are essentially getting a free short-term personal loan. Credit cards are so common that we may not consciously think of this benefit and that it’s significant. Besides credit cards, interest-free loans are very unusual. Why would anyone lend money if they couldn’t make interest? In this case it’s possible because the costs are offset by the vast majority of people who pay credit card fees.

Credit Card Perks

Credit Card Benefits are one of the main features of this page. You don’t even have to use your credit card to receive one of them – roadside assistance. That benefit is actually free. All other benefits below require that you use the card to make a purchase. Since you’re making a purchase they’re not actually free, but at least you don’t have to pay extra to receive these benefits (as long as you never pay credit card fees by paying it off every month).

Credit Card Rewards – Cash-Back, Frequent Flyers & Others

The first benefit that people might think of with credit cards are credit card rewards. Some of the best credit cards have cash-back rewards up to 5%, but they usually offer about 1%. Other rewards include frequent flyer miles or points which can be applied to other purchases. Do not let points and payout limits trick you into spending more. This is supposed to be a type of discount. Just let the rewards run in the background, do not consider them when making any purchase decisions, and when they accumulate enough to buy something, it’s a nice bonus.

Rewards are not actually free since you generally have to spend money to get them, but if used properly they are a discount. Also, they can be free if you use your credit card for purchases where you get reimbursed. Read more about Rewards.

Buyer Protection

Consumer protection may also be a benefit of credit cards that consumers take for granted. It is because of credit cards that consumers can feel confident making online purchases. You may come upon a store that you’ve never seen before and you’re interested in buying one of their products. Even if they have some kind of seal that says the site is secure, that can be faked. You really don’t know if they’re just going to take your money and never deliver. If they never do and you made the purchase with a credit card, then you can request a “chargeback” from your credit card company and likely get a refund (it’s not fulfilled 100% of the time, but there is still some protection). This is why all online purchases should be done with a credit card. Using a debit card does not provide this protection.

Also, if your credit card gets stolen, you are not responsible for unauthorized purchases.

Automatic Extended Warranty Up To A Year

Have you ever been at the checkout with some electronic product and the cashier asks if you want to purchase an extended warranty? Buy the item with your credit card and the warranty is already included.

Roadside Assistance

If you’re negotiating car insurance coverage and roadside assistance could raise your premiums, then check with your credit card company first. You may already have it.

Car Rental Insurance & Collision Insurance

This is an excellent freebie for travel and vacations, or for when your vehicle is in the shop. Anytime you’re renting a car, they’ll ask if you want to purchase rental insurance and collision insurance. If you pay with your credit card, then those are free.

Trip Cancellation Insurance

Usually airlines and other travel services will charge a cancellation fee if your cancellation is too close to departure. If you purchased the tickets with your credit card, then the credit card company will reimburse these fees.

Lost Luggage Protection

Another travel freebie offered by some credit cards is luggage protection. If you purchased your airline tickets with your card and the airline loses your luggage, then the credit card company will cover you and your dependents up to a specified amount (commonly $3,000).

90-Day Return Protection For Amex Card Holders On Eligible Products

If you purchase an eligible product with an American Express card, then you can return it within 90 days. Most retailers have a return policy, some allow you to make returns within 90 days anyway, but when they won’t accept the return, American Express will send you a refund up to $300 per item, excluding shipping and handling, up to $1,000 per year total.

24-Hour Concierge

Let someone else help you make purchases – that sounds like a good idea, right? (Maybe not if their job is to help you spend more, not less). If you happen to want it and if you have the right card, then a concierge can help you make dinner arrangements, purchase tickets to events, select a gift or find a product that is hard to locate.

Price Protection

This is actually a very good one to make use of. If you purchase an item for a certain price and then see it advertised for less within 60 days, then your credit card company will refund the difference.

Why Didn’t I Know About These Credit Card Benefits?

Credit card companies don’t necessarily hide this information. They just don’t make it prominent in their advertising. They send notifications by mail which detail the benefits that come with the card, but like most fine print, people don’t read it. This page is just an example of what your credit card might offer. You can probably find your specific benefits by logging into your credit card account online.

Building your credit score

One of the best ways to build your credit score is by choosing the best credit card available coming out of high school, pay it off in full every month and don’t ever cancel it. Even if you’re reading this late and you finished high school a long time ago, the longer positive history you can build with your credit card the better.

Avoid signing up for too many credit cards within a short period of time because that can negatively affect your credit score. Get a free credit report every year and dispute all false or inaccurate items on the report.

This is important information to consider for the next two freebies listed below.

Retailer Credit Card Sign Up Bonuses (Free Money)

Retailers could offer about $20-$50 just for signing up for their credit cards. Often the cashier will make this offer at the checkout. If the offer is $20, then you technically get any $20 purchase for free, the same if it’s $30, $50 or any amount. As long as you don’t pay credit card fees, this is actually free.

You can do this with as many retailers as you want (if they offer a credit card). You may even be able to repeat the process if you cancel the cards, wait a certain period of time and/or change your information for the next card (address, email, etc.). The only caveat is that it can negatively affect your credit score if you sign up for too many credit cards. A good credit score is required for making purchases on large-ticket items, like a car or a house. Since you’re a savvy shopper, you’d never purchase consumer products on layaway so you don’t need your credit score for that. This means that if you’re not buying a house or a car in the near future, get as many credit card sign up bonuses as you can get. If you’re going to buy a house or a car a year or more from now, you can work on repairing your credit score.

Free Mid-Term Loans With 0% Balance Transfers

If you ever go to a real estate investor seminar, you might see this trick presented. Personally, I think it’s rather irresponsible to explain this trick to people who are not credit card savvy. It’s potentially one of the best credit card freebies you can get, but I’m purposely mentioning it last after having explained the dangers of inappropriate credit card use multiple times. I’ve never tried this trick (not tested by Actually Free), but supposedly it’s used by real estate investors all the time and it doesn’t seem that hard to execute.

If your credit score is good enough, you can apply for 0% interest credit cards. These are cards that have 0% interest for the first 1-2 years. They still require monthly payments, but you’re paying principle only, not interest. The trick is to get two cards and use them to build history with a small bank at the same time you’re rehabbing a house. You have to request hand-writable checks with the cards which you can do by calling customer service. Start by opening an account with a small bank and write a check to yourself for $30,000. Use the checking account to perform rehab operations. Then use the other card to make another check out to yourself for $30,000, deposit in the bank, and pay off the first credit card. Do this back and forth multiple times so that you build a history of making $30,000 deposits with the bank and build your credit by paying off the credit cards consistently. Then, when you’re done rehabbing the house, you’ll sell it for a profit and pay off the remaining $30,000 to end the cycle. You’ve essentially received a mid-term interest-free loan (about 6 months to rehab the house, not short-term like a month, and generally not longer than a year). Also, the deposit history that you’ve built up with the bank will allow you to speak to officials in the back office. These officials can get you access to business funding that aren’t accessible to other persons; they can also give you access to their REO’s (foreclosed and pre-foreclosed properties) for more potentially profitable real estate deals.

Obviously there is risk here. If you don’t do the rehab correctly and you don’t make a profit, you’ll loose money in the real estate and on top of that you’ll have to pay off the credit card from your own pocket. Not to mention that 0% interest credit cards become very high interest credit cards after the first 1-2 years. Yikes!