Many consumers rely on credit cards for short-term loans or a convenient way to pay, and perhaps even to earn cash back rewards. However, many popular cards offer benefits and consumer protections that individuals may not even be aware of.
How to Take Advantage of Your Credit Card Benefits
To find out the benefits your card offers, start by reviewing the terms and conditions of your credit card. Most banks send a benefits guide in some way through the mail, but you can usually find the same information online.
Note: To take advantage of most of these services and perks, cardholders must have made the appropriate purchase using that specific card. When the washer you bought with cash breaks down on the same day the manufacturer’s warranty expires, don’t expect your credit card issuer to grant you an extra year of warranty protection. Be aware of the benefits available on your various cards so you can use the right card for each purchase.
Most Important Credit Card Benefits Available Today
Here are some of the most important benefits available on credit cards today:
1. Purchase Protection
This insurance coverage compensates for items you purchased using your card that were stolen or accidentally damaged. For example, if you bought a microwave with your credit card and drop it while setting it up, purchase protection will likely cover the damage.
2. Price Protection
While many card companies have discontinued this feature, some still offer price protection as part of their available benefits. This feature allows you to file a claim if the price of a laptop you purchased suddenly drops by $200, even if it’s at a different store. If your claim is valid, the credit card company will issue a refund for the difference.
3. Extended Warranties
This feature extends the manufacturer’s warranty for a specified period – usually another year and sometimes longer. The terms of the extended warranty will generally match the terms of the original coverage.
4. Return Protection
Return protection coverage does what a person would expect. If the store refuses to refund the item you purchased using your credit card, this coverage can reimburse you the amount you paid.
5. Mobile Phone Protection
Mobile phone protection reimburses you if your phone is stolen or damaged. The only requirement is that your monthly phone bill must be paid using your card. Some policies may include deductibles (e.g., $100) and per-claim limits of around $600. These policies typically set a maximum number of claims you can file within a 12-month period.
6. Rental Car Damage Waiver Insurance
Many credit cards, especially travel cards, offer rental car coverage that is secondary to any other insurance you may have. This means that the coverage provided by the credit card will only pay if your insurance does not fully cover the loss. The scope of this coverage can vary, so check the benefits guide.
7. Trip Cancellation/Interruption Insurance
This coverage kicks in when a trip that was paid for using your card is canceled or delayed due to bad weather, injury, illness, or other factors beyond your control. Many hotel and airfare bookings are non-refundable once your trip is close enough, so this could be the difference between your vacation sinking or just being postponed. For example, a good policy might reimburse non-refundable, prepaid travel expenses up to $1,500 per person and $6,000 per trip. Find out which of your cards is the most generous in this area and use it for your bookings.
8.
Travel Accident Insurance
Many credit cards offer travel accident insurance for you (or your beneficiaries) if you paid for your public transportation using your credit card and suffered loss of life or accidental dismemberment. This coverage can be as high as $500,000 (and up to $1 million with some cards), but your exact benefits will depend on your specific injuries. For example, you may receive coverage of up to $500,000 for loss of life or accidental dismemberment under a typical policy, but only 50% of the policy amount if you lose only one hand or one foot or if you lose sight in one eye instead of both.
9. Baggage Protection
Many cards offer protection for your baggage if it is temporarily or permanently lost by a common carrier. If you paid for the cost using your card, baggage delay coverage will reimburse you for expenses you may incur while waiting for your baggage. This is typically good for up to $100 a day for several days while the carrier searches for your baggage and returns it.
On the other hand, lost baggage coverage will reimburse you for the value of any baggage permanently lost by the carrier. At a minimum, a premium travel card covers not just the cardholder but also family members – even if the cardholder is not traveling with them.
10. Coverage for Free Checked Baggage Fees
Many credit cards partnered with airlines, and some travel rewards cards, cover the cost of checked baggage when you pay with your card. Some cards may cover more than one bag and even checked bags for traveling companions.
11. Airport Lounge Access
Airport lounges offer some relief from travel stress, especially if you are a frequent traveler. However, this comfort comes at a cost, unless you have the right credit card. Airline-branded credit cards often provide complimentary access to airport lounges, as well as some high-value travel rewards cards. Some offer free access for the cardholder’s travel companions, while others charge a fee ranging from $25 to $50 for the cardholder and their guests.
How to Maximize Your Credit Card Benefits
These are just some of the common benefits included in many card policies. Be sure to know the perks of each card so you can maximize the benefits of each one. And remember, you won’t benefit from any of these perks if you don’t make purchases using your card.
Was this page helpful?
Thank you for your feedback!
Let us know why!
Other
Submit
Source: https://www.thebalancemoney.com/credit-card-perks-961127
Leave a Reply