5 Credit Card Benefits You Might Not Know About
These perks can help you save money if you use them right
As inflation continues to push up the costs for everything from food and gas to appliances and electronics, having a credit card that gives you a zero percent interest period or cash back is a real plus.
But did you know that many credit cards also help extend a product’s warranty or replace goods that are damaged or stolen? Some even give you your money back if you change your mind after the merchant’s return period has ended.
“I think many consumers aren’t aware of some of these benefits, which can be very valuable,” says Bill Hardekopf, senior industry analyst at MoneyCrashers.com, a financial information website. “That’s largely because card issuers don’t promote them.”
Here’s a look at some of the more popular perks. Not all cards offer all these benefits, so check with your issuer to see which ones you have, and carefully read the terms and conditions of each.
Protection From Product Damage or Theft
Perhaps your new couch was finally delivered after months of delays (thanks, supply chain!), but the very next day your aging cat left a wet spot that no cleaner or deodorizer can fix. Check to see if your card’s coverage offers purchase protection.
Extend Your Warranties
It’s easier to decline the extended warranty the dishwasher salesman’s pushing when you know your credit card has your back. Some credit card issuers automatically add a year or two to the manufacturer’s warranty. Credit cards that offer this coverage cap benefits, typically at $10,000 per claim and $50,000 per account.
For instance, if you buy a new video doorbell with the Costco Anywhere Visa by Citibank, you’ll get 24 months of extended warranty coverage up to a maximum of 7 years. (The Costco Anywhere card, which can be used at other retailers, also offers damage and theft purchase protection.)
Many other Citi-issued credit cards include the same additional two years, including the Citi Premier Card, says Nick Ewen, director of content at ThePointsGuy, a website covering points, miles, and credit cards.
The claims process can be time-consuming, Ewen says. With these programs, you’ll need to file a claim and provide documentation if your eligible purchase is in need of repair and is outside the manufacturer’s warranty period.
If approved, you’ll typically receive a check or statement credit reimbursing you for repair costs, replacement costs, or the original purchase cost.
Return Unwanted Purchases
If the cookware you bought for yourself didn’t pan out, return protection can save you from having to toss it or give it away. The perk reimburses you for an item you no longer want, even if the merchant’s return policy has expired.
Most stores have a return policy of 30 days, but the card benefit can extend the protection for 90 or 120 days, Ewen says.
For example, some American Express cards will allow you up to 90 days from the purchase date to return eligible items, but typically the benefit is capped at $300 per item and $1,000 per account per year. It also excludes shipping and handling charges.
Cell Phone Insurance
Perhaps you dropped your cell phone and it hasn’t worked right since. If the credit card you bought it with has cell phone insurance, you could be in luck.
With cell phone coverage, you’re protected against damage and theft, typically up to $800 or $1,000, depending on the card issuer. There’s usually a small deductible, perhaps $50. You are usually limited to two to three claims per year.
You have the coverage as long as you pay your cell phone service bills with your credit card. Keep in mind that, as with cell-phone insurance you pay for, there may be a deductible with any claim.
Although the coverage isn’t widespread, more cards have been started to offer it recently, Ewen says. For example, last year cell phone insurance was added to the American Express Platinum card, among others, and it also is included on the new Capital One Venture X card.
The cards don’t cover everything, though. Given the limits on coverage, a brand-new, high-end iPhone might not be fully covered through your card issuer, nor would you be covered if you lose your phone. And if you if you don’t use the card to pay that cell phone’s bill each month, it might not cover anything.
However, if you follow the rules, this can be a really useful perk, Schulz says.
Special Offers and Rewards
Card issuers typically offer targeted discounts on products and services from retailers, as well as statement credits for certain purchases.
To find the deals, scan your account home page, which will direct you towards to the offers available, with details on the types of purchases that qualify for the rewards or discounts. Recently, for example, American Express was offering a $25 statement credit for purchasing an HBO Max subscription for $99 or more, while some Chase credit cards offered a complimentary one-year DoorDash membership.
And keep checking for new perks because card issuers are constantly adjusting rewards to reflect changing spending patterns, Schulz says.
Wells Fargo’s Bilt Mastercard now offers cardholders points on rent payments, which can be helpful for renters, and Wells Fargo’s Autograph Card offers extra points for electric vehicle charging.
