Did you know your credit card gives you money-saving super powers? It’s true: most customers have no idea they can use their cards to, say, extend a laptop warranty for free or confidently turn down that expensive collision damage insurance at the rental car company. To help you make the most of your card benefits, we compiled a cheat sheet of the seven best-hidden perks.
Purchase protection policies
Credit cards can offer several different benefits that can help you save money on your purchases and protect them afterward.
1. Purchase Protection. With these policies, qualifying purchases can be covered against damage or theft. In fact, some cards have specific policies to cover mobile phone purchases.
2. Extended Warranty. Extended product warranty programs are commonly available from many card issuers that cover qualifying purchases for an additional extra year when the manufacturer’s warranty is 36 months or less.
3. Price Protection. Some credit cards offer policies that provide for a refund if you find a lower price after making a purchase.
4. Return Guarantee. If a store will not accept your return within 90 days, some credit cards offer a return guarantee policy.
Travel insurance benefits
Many credit cards feature valuable benefits for travelers including:
5. Auto rental collision damage waiver policy. Almost all credit cards offer rental car insurance that allows you to save money each time you rent. So long as you decline the collision damage waiver offered by the rental car company, and pay with your rental using a qualifying card, then you are covered by this policy at no additional cost. Just be sure to note that these policies may have restrictions on where you are covered and in which types of vehicles.
Cardholders also benefit from a variety of tools to help manage your account and your finances.
6. Automatic bill payment. This benefit that some credit cards offer allows you to pay recurring bills such as those for mobile phone service, cable television, or insurance. In some cases, these purchases are even eligible to receive reward points, miles or cash back.
7. Credit score information. Some credit card issuers are now offering cardholders a free copy of their credit score each month. This service helps cardholders to make more informed decisions about their credit usage while alerting them to any potential problems.