While it’s true that you need to be careful and responsible with your credit card, your credit card isn’t necessarily evil. Indeed, your credit card can actually be a source of different perks. I’m not just talking about rewards programs (which can offer great opportunities to get cash back, and free stuff). Your credit card also comes with a number of other perks that should be considered:
Don’t miss out on these credit card perks:
Car Rental Insurance
This is my favorite credit card perk. Many credit cards will provide you with rental car insurance as long as you pay for the rental with the card. All of my credit cards offer this perk. Rather than paying extra for rental car liability insurance, you essentially get it for free. You usually have to sign the waiver declining insurance from the car rental company, and you have to pay for the entire rental with your credit card. Before you use this perk, though, make sure you understand the terms of the insurance; some things might not be covered, and there may be different rules depending on where you rent the car. But, in general, there is a good chance you won’t have to pay for your car rental insurance. [If you have questions on what your card covers, give them a call and they should be happy to answer your questions and send you materials detailing the coverage.]
See some great travel rewards credit cards.
Extended Warranty
If you want protection on a purchase beyond what the manufacturer provides, your credit card might offer it. Many credit cards provide an extended warranty when you buy items using the card. As you might expect, you have to purchase the entire item with your credit card, and you should save the receipt. Then, if the item breaks, or is defective, you have recourse — even if the manufacturer warranty has expired. You can get information about extended warranty in your credit card agreement, or by calling the customer service number.
Price Protection
Make sure you don't miss out on these credit card perks!
Another great perk is price protection. In some cases, if an item you bought goes on sale after you bought it, you can get a refund for the difference from your credit card. Depending on the card, the price protection period can be anywhere between 30 and 90 days. Double check to see what the terms are; chances are that you will need to keep a receipt.
Note: When you have excellent credit, your choice of credit cards increases, offering you better perks like price protection and more.
Luggage Insurance
If your luggage isn’t waiting for you when you get off the plane, and if you never recover it, you might be able to receive compensation for the lost bags and for what’s in them. The Aviation Consumer Protection and Enforcement Department will provide you with the ability to make a claim, but your reimbursement may be limited. Check your credit card, though; you might be able to get more. Once the Federal limit is reached, your credit card may supply the difference.
Here are some airline miles credit cards to take a look at.
Merchant Dispute
Say you buy something online, and when it arrives, it wasn’t as described — but the merchant has a no return policy. Some credit cards will allow you to return the item, and then reimburse you for it. Others will allow you to dispute the charge, and then charge back the amount to the merchant. You might have better luck getting your money back through your credit card than dealing with the merchant.
Before you dismiss credit cards, consider some of the attendant perks. You might be surprised at what you find.
{ 7 comments… read them below or add one }
I love number one – rental car insurance. My wife and I just had to get a rental car while our car was in the shop. She drives the car so she signed for the car. When I got home she told me the amount we were paying and I almost lost it. She went on to explain that with the insurance, it so X amount. I failed to explain to her before hand that we didn’t need it and they tricked her into buying extra insurance. boo. Well, that will never happen again.
Ouch. Look, you make a mistake and it sticks with you so you learn from it.
We rented a car recently and I made sure to take advantage of the rental car coverage our credit card offered. I should have been smarter and used the card site to book the car in the first place but I waited until the last minute.
My cards have these perks but I often forget outside of rental car insurance. I always think so much about miles or cash back that I forget about the smaller, but still valuable, perks that come along with a Visa Signature card.
Yeah, I tend to forget about all the lessor known perks as well.
All this information is in the fine print we do not read. When you apply for the card there usually are summary points of the benefits. Everyone should become familiar with the perks, it may save you money.
Absolutely! Most think all those pages in the summary is just types of fees but it’s also the benefits you can get.
I just heard about rental car perks and I’m really excited to start taking advantage of those as I travel more this year.