Credit cards are usually known for high interest rates and extra fees, but did you know they also have some hidden benefits? Policies vary by company, but here are five perks your credit card may provide:
1. Rental car insurance: One-third of drivers tend to buy extra collision insurance when they rent a car. Most credit cards include collision insurance. You could save $140 on a week’s rental, but it may not apply to trucks, campers, and SUV’s.
2. Cell phone replacements: If your phone gets damaged or stolen (loss may not be included), certain cards such as Citi will pay for a new cell phone, although you will have a $50 co-pay
3. Trip cancellation: A Discover card may give you up to $2500 if you have to cancel your trip due to serious illness. It has to be a serious illness with a doctor’s note or even an event like death in the family.
4. Price (or return) protection: If you buy an item and find the same one advertised for a lower price elsewhere within 30 to 60 days, your card might refund the difference. Exclusions could include cars, cell phones, online sales, and purchases on eBay.
5. Extended warranties: Visa and AmEx cards automatically double the length of any manufacturer’s warranty. You need documentation and some products aren’t covered but it can save you money.