Your credit card might offer more than cash back or hotel and airline rewards points.
Often, hidden in the fine print of your cardholder agreement, these additional benefits range from extended warranties to guaranteed merchandise returns to cell-phone replacement coverage.
Figuring out what your card covers is as simple as calling the toll-free number on the back of your card and asking, according to Matt Schulz, senior industry analyst for CreditCards.com. You can also find out about the perks offered by looking up the card online or reading the agreement you signed when you took out the card.
"Any time you're going to make a large purchase or travel, it's a good idea to look into whatever perks your credit cards might have, because they can save you some real money," Schulz advises.
Some benefits are more common than people realize. A report from CreditCards.com last year found that 85 of 100 frequently used credit cards offer at least one valuable perk, with the most common being extended warranty coverage on purchases paid for with the credit card.
To take advantage of these credit card benefits, you may need to submit a receipt to the card issuer. Sometimes, though, you may have to jump through hoops to prove you qualify for the benefit. "The more of a paper trail you can create, the better off you'll be," Schulz says.
Credit Card Benefits to Look For
Among the most common credit card benefits are:
Extended warranty protection. Consumer Reports generally doesn't recommend that you buy an expensive extended warranty when you purchase a product. But if it comes at no additional cost when you use your credit card—say, the American Express Blue Cash Everyday card—it could be beneficial.
Be sure to pay for any repairs with the same credit card and keep all your receipts. Submit the necessary paperwork to your credit card company and you'll eventually see a credit appear on a future statement. Credit cards that provide extended warranties don't do so for all products that you buy. Excluded items can include medical equipment and software. Make sure to get the details on the coverage before making a big purchase.
Purchase security. More than half of the credit cards in the CreditCards.com report offered this little-known benefit, which can come in handy if you tend to be clumsy or forgetful. With the "purchase security," benefit, your credit card company will repair or reimburse items that have been damaged, lost, or stolen.
It's usually limited to items bought within the previous 90 days, and some items, such as jewelry or perishables, will be excluded. One card issuer that offers purchase security is Capital One. It comes with any of its Visa Signature cards.
Price protection. One of the most frustrating things for a deal-seeker is to buy something that drops in price a few weeks later. Even if you've already removed the tags and it's past the store's time limit for returns, you may be able to get the savings if you used a card with price protection, such as the Citi Double Cash card.
Taking advantage of this benefit requires a bit of follow-up, but for big-ticket items it could be worth the effort. Some banks will cap the refund at $250 to $500 per item, with a total annual limit as well.
Guaranteed returns. If you've tried to return an item only to find that the retailer will no longer accept it, your credit card company may be able to bail you out. As long as you are within the acceptable time frame—usually 90 days after you purchased the item—your bank will give you a refund, up to a certain price cap, if you send them the unwanted item. One card that offers guaranteed returns is the Discover card.
Cell-phone replacement. You may not have realized that your credit card can help cover the cost of a new cell phone if yours is damaged or stolen. For that insurance, though, you need to pay your monthly cell-phone bill with a qualifying credit card—Wells Fargo offers this benefit in many of its cards. In case of theft, you'll have to file a police report or other paperwork to prove that your phone is gone. Loss, however, isn't included, so if you left your phone in a taxi, you're out of luck.
Missed-connection insurance. Travel delays can be frustrating and expensive, unless you bought your ticket with a credit card that offers travel delay or trip cancellation insurance. The Chase Sapphire card, for example, offers this benefit. There might be restrictions depending on the card: Your travel might need to be delayed by more than 12 hours, for example, or require an overnight stay. But if you meet the requirements, your credit card may pick up the tab for related expenses, including hotel costs, meals, and even toiletries.