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Credit cards are a convenient payment tool. In addition to earning rewards, some cards have many benefits. Find out what perks you may be missing out on. 

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Credit cards are convenient. You can use them to pay for purchases when you don’t have cash available, and when used carefully, they may help you increase your credit score. But some other unexpected benefits can come from using credit cards. You may want to explore these potential benefits if you’re not yet using credit cards to pay for everyday purchases.

1. Sign-up bonuses

Some card issuers market attractive sign-up bonus offers to new cardholders to attract customers. If you apply for a new credit card with such an offer and meet the eligible minimum spend requirement, you can earn bonus points, miles, or cash back. These offers are an excellent way to earn rewards faster so you can get closer to your redemption goals.

2. Valuable statement credits

Another possible unexpected benefit of using credit cards is the ability to earn valuable statement credits. Some of the best rewards credit cards include statement credits that could help you keep more money in your pocket. Examples of such statement credits include travel credits for eligible travel purchases and food delivery app credits.

3. Cellphone protection

Some credit cards include cellphone protection, which can be valuable if your phone is lost, stolen, or damaged unexpectedly and you need repairs or a replacement. This overlooked cellphone perk once saved me over $300. Most cards that offer this perk require you to pay a deductible when making a claim. You’ll also likely be required to pay your cellphone service bill with an eligible card to qualify. This perk could help you out of a difficult and expensive situation.

4. Free two-day shipping from qualifying retailers

Many American Express credit cards are eligible for free two-day shipping through ShopRunner. Terms apply and enrollment may be required. If your credit card includes a complimentary ShopRunner membership, you can get free two-day shipping and free returns from qualifying retailers. For those who shop online often, this could be a valuable perk that saves money. At the time of writing, there are nearly 100 stores that are part of the ShopRunner program.

5. Free checked bag perks

Many popular airlines charge a fee for every checked bag you bring when you fly domestically. What you’ll pay can vary by destination and airline, but you can expect to pay at least $30 for your first checked bag for each one-way journey. Luckily, some airline credit cards include free checked bag perks. If you’re a frequent flier who struggles to pack light, this credit card benefit can help you keep more money in your checking account.

Don’t ignore the benefits of using credit cards

It’s good to be cautious, but don’t be afraid of credit cards. Many people steer clear of using credit cards because they worry about accumulating credit card debt. It is possible to rack up credit card debt, but you can make strategic choices to avoid this type of debt altogether.

Credit cards can be a great personal finance tool if you use them with care. Only charging what you can afford to pay off to avoid interest and paying your bills on time may help you improve your credit score. You can also benefit from using credit cards to earn rewards and by taking advantage of valuable perks like the ones mentioned above.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.American Express is an advertising partner of The Ascent, a Motley Fool company. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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