Credit cards come with a wide range of benefits that go beyond just making purchases and earning rewards. Many cardholders fail to take full advantage of the perks their credit cards offer, missing out on opportunities to save money, earn rewards, and enjoy exclusive services. In this article, we will explore some of the most commonly overlooked credit card benefits and share tips on how to maximize the value of your card.
1. Cash Back and Rewards Programs
Many credit cards offer cash back or rewards points on purchases, but cardholders often don’t fully understand how to use these programs to their advantage.
Maximize Cash Back and Rewards:
- Know Your Categories: Some cards offer higher cash back or reward points for specific spending categories, such as groceries, dining, travel, or gas. Be sure to use the card that offers the best rewards for the type of purchases you make most frequently.
- Use Rewards for Big Purchases: Instead of redeeming rewards for small items, consider using them for larger purchases or travel-related expenses. Many cards allow you to redeem points for flights, hotel stays, or even cash back.
- Combine Multiple Cards: If you have multiple cards with different rewards structures, use each card for its most lucrative category. This way, you can earn maximum rewards across a variety of purchases.
2. Purchase Protection
Credit cards often provide purchase protection, which can help you if an item is lost, stolen, or damaged shortly after purchase. This can save you money and give you peace of mind.
How to Use Purchase Protection:
- Keep Receipts and Documentation: Always keep your receipts and make sure to document the condition of the items you purchase. This will make it easier to file a claim if something goes wrong.
- Know the Time Limits: Purchase protection usually has a time limit for filing claims, often between 30 to 120 days, depending on the card. Be sure to check the terms to ensure you’re within the eligible timeframe.
3. Extended Warranty
Many credit cards offer extended warranties on purchases made with the card, which can provide added protection on items like electronics and appliances.
How to Use Extended Warranty:
- Register Your Purchases: Some cards may require you to register your purchase in order to activate the extended warranty benefit. Make sure to follow the instructions provided by your card issuer.
- Check the Terms: Extended warranties typically extend the original manufacturer’s warranty for up to one additional year. Be aware of the specific terms and exclusions for your card.
4. Travel Insurance
Many premium credit cards offer various types of travel insurance, including trip cancellation, trip interruption, baggage delay, and emergency medical coverage. These can provide significant savings and protection while traveling.
How to Use Travel Insurance Benefits:
- Pay for Travel with Your Credit Card: To activate many of these travel insurance benefits, you’ll often need to pay for your trip using the credit card that offers the coverage.
- Understand Coverage Limits: Different cards offer varying levels of coverage, so it’s important to read the fine print. For instance, some cards may cover trip cancellation up to a certain amount, while others may provide baggage delay reimbursement.
- Keep Emergency Numbers Handy: Many travel insurance benefits require you to call a number immediately if you need to file a claim or require assistance. Be sure to have the contact information for your card issuer’s travel assistance services.
5. Price Protection
Price protection is a benefit that reimburses you the difference in price if the item you purchased goes on sale within a certain period after your purchase.
How to Use Price Protection:
- Monitor Price Drops: Keep an eye on prices for items you purchase, especially for large-ticket items. If the price drops, you may be able to claim the difference, which can add up to significant savings.
- Know the Claim Process: Price protection usually requires you to submit a claim with documentation showing the original price, the sale price, and the receipt for the item. Familiarize yourself with the process to make sure you don’t miss out on this benefit.
6. Concierge Services
Some premium credit cards offer concierge services, which can assist with tasks like booking travel, making restaurant reservations, finding tickets to events, and more. This service can save you time and effort while providing access to exclusive experiences.
How to Use Concierge Services:
- Make Use of Travel and Event Planning: If you have a big trip planned or need tickets to a concert, contact your card’s concierge service to see if they can assist with reservations or find exclusive access.
- Plan Ahead: Concierge services may be limited during peak times, so it’s best to request help early, especially for high-demand services.
7. Airport Lounge Access
Many credit cards, particularly travel-focused ones, offer access to airport lounges, providing a more comfortable and relaxing experience before your flight. Lounge access typically includes amenities like free snacks, beverages, Wi-Fi, and comfortable seating.
How to Use Airport Lounge Access:
- Use Lounge Memberships for Relaxation: If your card offers lounge access, take advantage of it before your flight to enjoy a quiet space, free Wi-Fi, and complimentary refreshments.
- Check Your Eligibility: Not all cards offer complimentary lounge access, and some may require a fee. Make sure you understand the specific terms of your card’s lounge benefits and whether it’s through a network like Priority Pass or through specific lounges tied to your card issuer.
8. Fraud Protection
Most credit cards offer zero liability for unauthorized purchases, meaning you’re not responsible for fraudulent charges on your card. However, this benefit is often underutilized, with cardholders not fully aware of their rights when fraud occurs.
How to Use Fraud Protection:
- Monitor Your Statements: Regularly review your credit card statements and activity. If you spot any suspicious charges, report them immediately to your card issuer.
- Know the Process: If your card is lost or stolen, contact your card issuer right away to report the incident and initiate the fraud protection process. Most credit cards have a dedicated fraud department to help you.
9. Rental Car Insurance
Many credit cards offer rental car insurance when you use the card to pay for the rental. This coverage can help protect you from paying for damages or theft during the rental period, saving you the cost of purchasing insurance from the rental agency.
How to Use Rental Car Insurance:
- Pay with Your Credit Card: To activate rental car insurance coverage, you must typically pay for the rental car with the credit card offering the benefit.
- Check Coverage Limits: Review the terms of your card’s rental car insurance to ensure you understand what is and isn’t covered. Some cards provide collision damage waiver (CDW) coverage, while others may have exclusions or limitations.
10. Access to Special Offers and Discounts
Credit card companies often partner with retailers, restaurants, and other businesses to offer exclusive discounts and promotions to cardholders. These offers can help you save money on everyday purchases or special purchases.
How to Use Special Offers and Discounts:
- Check Your Card Issuer’s Website: Many credit card issuers list ongoing promotions and exclusive offers available to cardholders. Make sure to check the website regularly for new deals.
- Sign Up for Alerts: Some credit card issuers allow you to sign up for alerts when new offers are available, so you don’t miss out on savings.
Conclusion
Credit cards offer a wealth of benefits beyond just making purchases. From cash back and rewards programs to travel insurance and purchase protection, the perks can add up to significant value if used properly. By taking full advantage of the benefits available to you, you can maximize your card’s potential and enjoy greater savings, convenience, and peace of mind. Make sure to regularly review your credit card benefits, and don’t hesitate to contact your card issuer if you’re unsure how to use a particular feature.
FAQs
1. How can I maximize the rewards on my credit card?
Maximize your rewards by using the card for purchases in the categories that offer the highest rewards rates, such as groceries, dining, or travel. Be sure to redeem rewards for high-value options like travel or large purchases.
2. Does my credit card offer fraud protection?
Most credit cards offer fraud protection, meaning you are not responsible for unauthorized charges. Contact your credit card issuer immediately if you spot any suspicious activity.
3. Can I use my credit card for rental car insurance?
Many credit cards provide rental car insurance if you pay for the rental with the card. Review your card’s benefits to understand what is covered and the process for making a claim.
4. What is purchase protection, and how does it work?
Purchase protection helps protect your purchases from loss, theft, or damage within a certain period after the purchase. Be sure to keep your receipts and file a claim with your card issuer if needed.
5. How do I access airport lounges with my credit card?
If your credit card offers airport lounge access, you may be eligible to enter lounges for free or at a discounted rate. Check with your card issuer for details on how to access lounges and any requirements or restrictions.
