9 Credit Card Benefits That You Must Never Miss Out

Credit cards and rewards go hand in hand because that is how the business model works. No matter which credit card you choose, you stand to earn rewards in some form – cashback, points, miles. Having a credit card means you have a reward card in your pocket.

Although rewards are attractive, it should not be the only reason or choosing any credit card unless you are a frequent flier who could benefit immensely from various Southwest credit card offers that provide the best options for earning free airline tickets together with other travel benefits. However, rewards are only one type of benefit that credit card companies offer to its clients and there are many other benefits beyond it that users often miss out because they do not pay attention to the fine print. 

Credit cards can offer many valuable benefits that go beyond rewards which you might not be aware of. This article throws light on some of the other benefits that add to the joy of earning rewards. 

Cellphone insurance

Paying for insurance to protect your cellphone from theft and damage might appear to be the only option for many people except those who are aware that free insurance coverage for cell phones is often a benefit offered by some credit card companies.

Many credit cards offer free cellphone insurance in exchange for paying your phone bills by using that credit card. The coverage pays for lost or stolen phones against a very nominal deductible about $25, and the amount is credited to your account or paid by check.  

Rental car insurance

Paying insurance when renting cars is common because it is part of the car rental package, and it could cost you a good sum. The additional insurance that you may have to buy could be a rip-off and weighs down on you heavily. However, you can avail this protection as a benefit offered by the credit card that you are using.

Most credit cards include the benefit of rental car insurance and to avail it you must choose not to buy the insurance offered by the best rental car company but use the card for paying the rentals. But be careful that there should not be any adverse conditions attached to it. 

Concierge service

There is a wrong notion about concierge service as many people look upon it as nothing more than traditional customer service expressed with a fancy word. However, the perception would change completely only if you know that the service is like having a personal assistant who can help you with everything from searching for the best places to have a quiet romantic getaway to booking concert tickets. This is especially useful when you are traveling to an unfamiliar place when the benefit of the credit card could come in handy.

Extended warranties

Among various credit card perks, the ability to avail extended warranty on many high-value purchases is perhaps the best. Usually, you can avail a year’s extension on the manufacturer’s warranty that goes a long way in enhancing the attraction of the credit card. The manufacturer’s warranty that you enjoyed during the first year stretches for another year on the same terms as the manufacturer.

To avail the benefit you must pay for the product with your card and preserve the warranty documentation of the product and receipt. Depending on the credit card company, you may have to register the product with them.  The credit card company handles the claims after the expiry of the manufacturer’s warranty.

Free checked baggage

Southwest Airlines customers are familiar with free check-in baggage offered by the airline, but even if you do not use the airline, you can get the baggage fees of minimum $25 waived by using your credit card which is a benefit given to users. This benefit is available in many airline-specific credit cards as well as co-branded cards including, United Airlines, Delta and Jet Blues.

Protection against unforeseen circumstances during travel

Although earning miles is the primary reward attached to travel credit cards, it also offers other benefits like unexpected cancellation when you are traveling provided you used the card for purchasing the tickets. Even you could receive payment for delay in luggage delivery.  Some credit cards even pay for the purchase of essential items like clothing and toiletries in the event of more than 6 hours delay in getting your luggage. 

Purchase protection

The benefit of price protection has similarity to extended warranty because if you have a newly purchased item accidentally damaged or stolen the credit card offers monetary protection. You can file a claim between 60 and 120 days, but there might be some specific restrictions applicable that you must note. The benefit might not include motorized vehicles, jewelry, secondhand items, antiques, and items like animals and plants.

Price protection

It might happen that soon after you make a high-value purchase, the price of that item drops after a few days. Some credit cards can protect you from such notional losses by paying for the difference in price that you paid and the reduced price advertised later, and if you are aware of the benefit in your card, you must surely use for major purchases.

To report a price change, there is a window of 60 to 120 days normally. It means you can look at some recently purchased items to find out if you could qualify for the benefit within the stipulated time.

Return protection

Being careful about the return policy of retailers is a piece of advice for any buyer because you should not be sorry later to find that the retailer does not accept a return. However, even if it happens, you stay protected with your credit card that arranges for a refund despite the retailer refusing to take back the item. There is a capping on the amount you can claim for a return during a year but not on the number of instances, and the time period for the claim is 90 days.

Above all, the benefit of accessing your credit score for free that comes with some credit cards is like the topping on the cake.

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David Wiliam

David Webb is a Sydney-based business consultant and a marketing analyst. With a decade of experience in the online business environment and a degree in business management, he continuously informs the public about the latest trends in the industry.

David Wiliam has 27 posts and counting. See all posts by David Wiliam

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