Many cards offer more than points and cash back
In addition to cash back, miles, and low or no interest rates, many credit cards offer special benefits that not all cardholders are aware of. In order to maximize the benefits offered by your credit cards, its important to read the fine print that comes with your new card. It is also important that you actually USE the credit card to get the benefits. For example, you won’t be covered by the credit card’s rental car insurance if you didn’t use the credit card to reserve the rental car. Some of the major types of benefits to look for in your existing credit card agreement or while shopping for a new card are:
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Shopping Privileges
- Price Protection: if you buy an expensive item and the price drops soon after, some credit card issuers will refund you the difference.
- Purchase Protection: if you buy an expensive item and it is lost, stolen, or broken, check your credit card agreement to see whether it offers purchase protection. Some cards offer automatic coverage against loss, theft, or damage – just be sure you have saved the receipt.
- Return Protection: if you are dissatisfied with a purchase and the merchant will not accept the return, the credit card may reimburse you within a specified time period.
- Extended Product Warranty: some issuers provide automatic extended warranties on products purchased with their cards. Read the fine print of your card agreement to see whether you can forgo the added expense of purchasing an extended warranty that may already be provided by your credit card.
Travel Perks & Protections
- Airport Lounge Access: access to the airport lounge is not only a nice perk, but can save you money. If you take advantage of the free food and beverages in the lounge, you can forgo the cost of purchasing these on the plane.
- Concierge Services: credit card issuers may provide assistance in making travel arrangements, booking restaurant reservations or buying event tickets.
- Hotel Discounts: whether you use the credit card’s concierge services or make the arrangements yourself, your credit card may offer significant discounts at certain hotels and resorts.
- Rental Car Upgrades: if your credit card offers free rental car upgrades, you can save money by renting a car at a reduced rate.
- Rental Car Insurance: the daily cost of a car rental can be much higher if you have to purchase the rental car company’s insurance. To save money, read the fine print of your credit card to see whether it provides automatic rental car coverage. Tip: be sure the amount of the coverage is adequate and also be sure you have used that credit card both to reserve and pay for the rental card.
- Trip Cancellation & Trip Interruption Insurance: under certain circumstances such as illness or bad weather, if a trip is cancelled or interrupted some credit card issuers will reimburse cardholders for trip expenses such as airline tickets, hotel reservations, and event tickets.
- Trip Delay Protection: if your trip is delayed you could be reimbursed for reasonable lodging expenses, meals, toiletries, and other personal use items.
- Travel Accident Insurance: although it’s always a good idea to investigate whether additional travel insurance is needed, some credit cards offer travel insurance for travel accidents when you pay for the airfare with your credit card.
- Baggage Loss or Delay Insurance: if your baggage is lost and you purchased your airline ticket with your credit card, the card may reimburse you for the lost baggage and its contents. If your baggage is delayed, you could be reimbursed for purchases of essential personal items such as clothing, toiletries, cell phone charging cables, and more.
- Waiver of Foreign Transaction Fees: if you routinely use your card internationally, this is a benefit that can really add up. When traveling, be sure to use a credit card that waives foreign transaction fees.
More Cardmember Services
- Cell Phone Replacement Insurance: if you purchase a cell phone with your credit card, the card may offer insurance coverage for loss, theft, or damage to the phone.
- Preferred Seating: being a cardholder can also mean you get access to advanced ticket sales and preferred seating at premier events.
- Event Ticket Protection: some card issuers (American Express, e.g.) will reimburse a cardholder if they cannot use the ticket due to a covered incident.
- Roadside Assistance: if your credit card offers free roadside assistance, you can forgo the cost of purchasing that service from a separate organization.
- Dispute Resolution Services: if you have a dispute with a business that has submitted a charge to your credit card account, the credit card issuer may provide assistance in resolving that dispute.
- Identity Theft Resolution Services: similarly, to dispute resolution services, if you discover that your identity has been stolen, the credit card issuer may provide assistance in resolving improper charges and restoring your credit history.
Chase Sapphire Preferred® Card
With a 60,000 point new cardmember bonus when you spend $4,000 in the first 3 months of having the card, plus 2x points on travel and at U.S. restaurants — all for a $95 annual fee — this card is one of the top rewards card values available. Chase points are transferable to 9 airlines and 4 hotels, giving you the option of booking directly via these loyalty programs for some massively lucrative award redemptions in first & business class or at 5-star luxury hotels & resorts.
