Credit Card Perks & Benefits: Explained
The estimated reading time for this post is 602 seconds
Credit cards have become an essential part of our daily lives, and they come with a range of perks and benefits that can enhance our overall experience.
Among these benefits are car rental loss and damage insurance, purchase protection, travel and emergency assistance, purchase protection, and extended warranty protection.
This article will delve into these benefits and explore how they work, what they cover, and how to make the most of them.
Car Rental Loss and Damage Insurance
One of the most common benefits offered by credit cards is car rental loss and damage insurance. This type of insurance covers the cost of repairs or replacement of a rental car if it is damaged or stolen while in your possession.
The coverage provided by credit cards varies depending on the card issuer and the specific card you have. Some cards offer primary coverage, which means that the insurance kicks in before any other insurance you may have, while others offer secondary coverage, which means that the insurance kicks in after your primary insurance has paid out.
To use this benefit, you must decline the rental car company’s collision damage waiver (CDW) or loss damage waiver (LDW) and pay for the rental with your credit card. You must also be listed as the primary renter on the rental agreement.
It is important to note that car rental loss and damage insurance does not cover liability or personal injury. It only covers damage to the rental car itself. Additionally, there may be exclusions and limitations, so it is essential to read the terms and conditions of your credit card’s coverage carefully.
Another benefit offered by many credit cards is purchase protection. This benefit provides coverage if an item you purchased with your credit card is lost, stolen, or damaged within a specified period after the purchase date.
The coverage provided by purchase protection varies depending on the card issuer and the specific card you have. Some cards offer coverage for up to 90 days after the purchase date, while others offer coverage for up to 120 days.
To use this benefit, you must file a claim with your credit card issuer, providing proof of the purchase and the damage or loss. The issuer will review your claim and may ask for additional documentation, such as a police report or a repair estimate.
It is important to note that purchase protection does not cover normal wear and tear or damage caused by misuse or neglect. Additionally, there may be exclusions and limitations, so it is essential to read the terms and conditions of your credit card’s coverage carefully.
Travel and Emergency Assistance
Many credit cards also offer travel and emergency assistance, which can be incredibly helpful when traveling abroad or facing an emergency situation.
Travel assistance typically includes services such as emergency travel arrangements, lost luggage assistance, and medical assistance. Emergency assistance may include services such as emergency cash advances, legal referrals, and medical referrals.
The specific services offered by travel and emergency assistance vary depending on the card issuer and the specific card you have. Some cards offer 24/7 assistance, while others offer limited assistance during business hours.
To use this benefit, you must contact the assistance provider provided by your credit card issuer. They will provide you with the necessary assistance and guidance.
It is important to note that travel and emergency assistance do not cover the actual cost of the services provided. They only provide assistance and guidance to help you deal with the situation.
Extended Warranty Protection
Another benefit offered by credit cards is extended warranty protection. This benefit extends the manufacturer’s warranty on eligible purchases made with your credit card.
The coverage provided by extended warranty protection varies depending on the card issuer and the specific card you have. Some cards offer coverage for up to one year after the manufacturer’s warranty expires, while others offer coverage for up to two years.
You must file a claim with your credit card issuer to use this benefit, providing proof of the purchase and the purchasing date.
It is important to note that extended warranty protection only covers eligible purchases made with your credit card. It does not cover normal wear and tear, accidental damage, or damage caused by misuse or neglect.
Additionally, there may be exclusions and limitations, so it is essential to read the terms and conditions of your credit card’s coverage carefully.
Cell Phone Protection
Many credit card issuers offer cell phone protection as a benefit to their cardholders. This benefit provides coverage for the cost of repairing or replacing a damaged or stolen cell phone.
The specifics of the coverage can vary depending on the issuer, but typically, the following conditions apply:
- The cardholder must have paid for their monthly cell phone bill with the eligible credit card to be eligible for the protection.
- The protection usually covers up to a certain amount of the cost of repair or replacement, often up to $600 per claim, with a maximum of two claims per 12-month period.
- The protection typically covers damage or theft, but may not cover loss or cosmetic damage.
- The cardholder must file a claim within a certain amount of time after the damage or theft occurs, usually within 60-90 days.
- The cardholder may need to provide documentation of the damage or theft, such as a police report or repair estimate.
It’s important to review the specific terms and conditions of the cell phone protection benefit offered by your credit card issuer to understand the details of the coverage and any limitations or exclusions that may apply.
Lost Baggage Coverage
Lost baggage coverage is a benefit provided by many credit card issuers that provides reimbursement for lost or damaged baggage when you travel. This benefit typically applies to both domestic and international travel and can be used in addition to any coverage provided by your airline or other travel providers.
If your baggage is lost, stolen, or damaged during your travels, you can file a claim with your credit card issuer’s benefits administrator to receive reimbursement for the cost of replacing the items inside your luggage.
The amount of reimbursement provided varies depending on the credit card and the issuer, but is typically limited to a maximum amount per covered person per trip.
To be eligible for lost baggage coverage, you must have purchased your travel tickets using your credit card. Some credit cards may also require you to have used the card to pay for additional travel expenses, such as hotel accommodations or rental cars, in order to qualify for the coverage.
It’s important to note that lost baggage coverage is typically considered a secondary coverage, meaning that it will only reimburse you for expenses that are not covered by your primary insurance policy.
For example, if you have a homeowner’s insurance policy that covers lost or stolen baggage, your credit card’s lost baggage coverage may only provide reimbursement for expenses that exceed the limits of your homeowner’s policy.
As with any type of insurance coverage, it’s important to read the terms and conditions carefully and understand the limitations and exclusions of the coverage. If you have questions about the lost baggage coverage provided by your credit card, you should contact your credit card issuer’s benefits administrator for more information.
Complimentary Checked bags and Priority Boarding
Complimentary checked bags: This benefit allows cardholders to check a certain number of bags for free when flying on an eligible airline. The number of complimentary checked bags may vary depending on the credit card and the airline.
For example, some cards may offer one or two free checked bags per flight, while others may offer up to four. This benefit can save cardholders a significant amount of money on baggage fees, especially if they travel frequently or with a large family.
Priority boarding: This benefit allows cardholders to board the plane before other passengers, giving them more time to settle in and stow their luggage. Priority boarding can be especially helpful for travelers who prefer to have extra time to get situated on the plane or who have carry-on bags that they want to ensure will fit in the overhead bins.
Late checkout & Room Upgrades-at Hotels
Late checkout and room upgrades are benefits offered by some credit card issuers as part of their premium credit cards or loyalty programs. These benefits can vary depending on the issuer, card type, and program but generally offer cardholders the opportunity to extend their stay at a hotel and enjoy an enhanced room experience.
Late checkout benefit:
The late checkout benefit allows cardholders to extend their checkout time at a hotel beyond the standard checkout time, which is typically in the morning. Depending on the issuer and the program, the late checkout benefit can range from a few hours to a full day. This benefit can be particularly useful for travelers who have late flights or who simply want to enjoy more time at the hotel.
Room upgrade benefit:
The room upgrade benefit provides cardholders with the opportunity to upgrade their hotel room to a higher category or better view at no additional cost. This benefit can include upgrades to larger rooms, suites, or rooms with better views, amenities, or services. The room upgrade benefit can provide a more comfortable and luxurious stay for the cardholder.
To access these benefits, cardholders usually need to book their hotel stay through the issuer’s travel portal or call the issuer’s dedicated travel service. The availability of these benefits can be subject to certain restrictions, such as availability, minimum stay requirements, blackout dates, or certain room categories.
It is also worth noting that these benefits are typically associated with premium credit cards or loyalty programs that come with higher annual fees and more extensive benefits. Cardholders should carefully consider whether the benefits offered by their card justify the cost of the annual fee.
How to Make the Most of Credit Card Benefits
Now that we have explored the various benefits offered by credit cards, it is important to understand how to make the most of them. Here are some tips to help you maximize the benefits of your credit card:
- Read the Fine Print: It is essential to read the terms and conditions of your credit card’s benefits carefully. This will help you understand what is covered, what is excluded, and what limitations there may be.
- Use the Right Card: Make sure you are using the right credit card for the purchase or activity that you want to benefit from. For example, if you are renting a car, make sure you use a credit card that offers car rental loss and damage insurance.
- Know the Requirements: Each benefit may have specific requirements that you must meet to qualify for coverage. Make sure you understand these requirements before using the benefit.
- Keep Documentation: Keep all documentation related to the benefit, including receipts, rental agreements, police reports, and repair estimates. This will make it easier to file a claim if needed.
- File Claims Promptly: If you need to file a claim, do so promptly. Most benefits have a deadline for filing a claim, so make sure you file before the deadline.
- Keep Contact Information Handy: Make sure you have the contact information for your credit card issuer’s benefits provider. This will make it easier to access the benefit if needed.
Credit card perks and benefits can provide significant value to credit card users. Car rental loss and damage insurance, purchase protection, travel and emergency assistance, purchase protection, and extended warranty protection are just a few of the benefits that credit cards offer.
To make the most of these benefits, it is essential to read the fine print, use the right card, know the requirements, keep documentation, file claims promptly, and keep contact information handy. By following these tips, you can maximize the value of your credit card benefits and enhance your overall credit card experience.
How to Finance a Motorcycle
Can You Finance Closing Costs?
Financing a Fixer-Upper Home
RAPID FALL FROM THE MIDDLE-CLASS INTO POVERTY
8 Best Countries for Social Mobility
Hiring Slowed in August
Personal Finance / Jun 05, 2023
How to Finance a Motorcycle
The estimated reading time for this post is 440 seconds Picture this: the wind rushing...
Personal Finance / Jun 03, 2023
Can You Finance Closing Costs?
The estimated reading time for this post is 631 seconds Closing costs are unavoidable in...
Personal Finance / Jun 02, 2023
Financing a Fixer-Upper Home
The estimated reading time for this post is 658 seconds Introduction A fixer-upper property is...