With all the hype around the Magic Plastic and how it has revolutionized the way we buy and purchase things, people often dramatize the risks associated with using credit cards. Here are some ways the credit card can actually provide much needed safety to their owners:

Refunds for Travel Cancellations

Vacations can be tedious to plan for many busy travelers and there is a high possibility when many of them just get postponed for no good reason. This is where your card can cut in and save your skin by getting you a refund for your airline or hotel expense. Though it might not amount for the entire amount, refunds are easily available for reasons such as illnesses, bad weather forecast, etc. In such case, you are required to submit supporting documents and maybe a doctor’s note if required.

Protection for Against Your Purchases and Stolen Items

Surprisingly, a credit card can be your best resource when a purchase goes wrong. In cases where the package you paid for never arrives or when you want your money refunded for a product, payments made through credit cards are far easier to process. Many card owners can easily settle the disputes with the company who has issued the credit card in the first place. For items that are broken or stolen, many can get a refund within three months after the purchase was made.

The process is simple. Companies would simply ask you to get a refund from the vendor themselves. At first, if this doesn’t succeed, many can offer a return protection which is limited but still a reasonable amount with company restrictions implied.

In case of stolen items, the proper method is to file a report followed by a request for compensation. However, there is still a possibility that some companies wouldn’t be able to provide protection for stolen items from an owner’s vehicle like FMCGs (Fast moving consumable goods) or antiques that were recently purchased.

Insurance for Rental Cars

In case you rent a car and get involved into an accident, the owner of the rent-a-car might ask you to pay extra to cover damages caused by collision. However, if you are a credit card owner, then you maybe in luck if your terms include theft protection and collision-damage. The process is to file a claim with your insurance providers before asking for reimbursements from the company which issued you the credit card.

In situations where owners of a credit card don’t have a possession of a car and a car’s insurance policy then the credit card automatically becomes your primary form of protection against rental car damages. Nevertheless, there are still restrictions depending on the model and make of the cars and rentals offered that need to be considered.

Balance surfing

Many companies offer credit cards with interest rates as an introductory bonus. This makes it easier the owners to reduce transaction costs. This is especially useful when you depend on credit cards for most of your transactions.