If you have a credit card or are thinking of getting one, you should definitely know about these 7 credit card perks. Knowing these extensive rewards with exceptional values in my opinion is becoming financially savvy. Unlike many credit card users, you won’t lose out on unlocking savings potentials.
Brief Summary of these amazing credit card perks and Benefits
| Perk | Brief Description | Key Details |
|---|---|---|
| Sign-Up Bonuses | Rewards given when applying for a new credit card, typically in the form of points or miles. | – Fixed offers: Straightforward point or mile rewards. – Tiered offers: Dependent on spending within a set period. |
| Price Protection | Allows cardholders to get a refund if an item purchased is found cheaper at a later date. | – Must register purchase before buying. – Claim must be filed within 60-90 days. |
| Rental Car Insurance | Covers damage and liability for rental cars when traveling. | – Purchase coverage with the card before making reservations. – Coverage may include theft, depending on travel destination. |
| Extended Warranties | Provides additional coverage for purchased items that break down after the manufacturer’s warranty expires. | – Not every card offers this. – Charges may apply depending on the card. |
| Cell Phone Coverage | Offers protection for your phone in cases of damage or theft. | – Coverage depends on timely bill payments and card status. – Monthly charges may apply based on age and conditions. |
| Retailer-Specific Perks | Rewards for shopping at specific retailers. | – Examples: Cashback on Amazon purchases, extra points on travel bookings through specific sites. |
| Concierge Services | Special services that assist with planning travel, making reservations, and other conveniences. | – Accessible through some credit cards without additional fees. |
If you have never used a credit card before, or you don’t know how they work, you should check out this guide on how credit cards work ➔.
Credit Card Benefits and How to Maximize them.
1. Sign-Up Bonuses: Maximizing Initial Rewards
A sign-up bonus is one of the exciting credit card rewards you can get when you apply for a new credit card. Typically, this reward is in the form of points or miles that can be redeemed for free travel.
There are two types of sign-up bonuses: fixed and tiered.
Fixed offers are straightforward—they offer a certain amount of points or miles for opening an account, usually between 20% and 50% for popular cards like Amex Rewards Gold.
Tiered offers are more complicated because they depend on how much you spend during your first few months with the card (or sometimes beyond).
For example: American Express Premier Rewards Gold gives you 25000 points if you spend $30K in 12 months. However, if your annual spending is under $15K then this perk isn’t active until year two!
The first thing to look at when considering whether a credit card signing bonus is worth it is how much value it brings to your life. Don’t just signup for a credit card just because you want these bonuses.
Check out these Credit Cards With Sign-Up Bonus of up to $200 ➔.
2. Price Protection: Securing the Best Deals
Price protection is one of the most useful benefits that credit cards offer, but it’s also one of the most likely to be misunderstood.
Here’s what you need to know about price protection:
What is price protection? Price protection allows customers with certain credit cards to get a refund if they buy an item and find it cheaper at a later date.
How do you take advantage of it? If you know that you’re going to make a large purchase soon, check whether your card offers price protection as part of its rewards program (for example, Chase ➔ Sapphire Preferred has this perk). If so, register your purchase before buying.
Once you register your purchases through your credit card account online or by calling customer service, all you have to do is file a claim within 60 days—and for items purchased on Amazon or eBay via Chase Pay or PayPal digital wallets within 90 days—to receive reimbursement for the difference in cost between the original price paid and new lower price from an eligible retailer listed in the terms.*
3. Rental Car Insurance: Safeguarding Your Travels
When it comes to credit card perks, rental car insurance in my opinion stands as an indispensable ally. This is especially true during unforeseen circumstances on your journeys. Many people are unaware of this benefit, but it’s one you should take advantage of if your card offers it.
To determine what your credit card covers in the case of a rental car accident, check out your benefits guide online or call up customer service to see what’s available. You’ll have to purchase coverage with your card before making any reservations through a third-party site—so do so as soon as possible.
If you’re traveling domestically and renting from one of the major rental companies (like Avis and Hertz), many cards will cover damage to the car as well as liability for damages caused by others using the vehicle while it’s in your possession.
Some cards also cover theft from vehicles, though there may be limitations placed upon them depending on whether or not it’s an international trip and where exactly you’re leaving from/traveling too (you don’t want to drive all across Europe without knowing exactly how much insurance coverage there is).
Make sure all bases are covered before signing anything!
4. Extended Warranties: Prolonging Your Peace of Mind
Extended warranties act as additional insurance for your purchases. For instance, if you buy a TV or computer and it breaks down within the first year, you can often secure a refund by contacting the manufacturer. However, if the item is more than 12 months old, you’re likely out of luck, as the warranty won’t be honored.
Credit card companies often offer extended warranties as a component of their credit card rewards programs, although not every credit card provides this benefit. When you pay annual fees on rewards cards, sometimes those fees might cover the cost of an extended warranty, and other times they might not.
In reality, some credit cards even charge over $100 annually just to offer an extended warranty on the items purchased with them!
So, what are the implications for consumers? Firstly, if there’s any probability that a purchase, such as a dishwasher or washing machine, may require repairs in the future, it’s advisable to forego it unless it’s already faulty. The cost of repairs can exceed the cost of purchasing a brand-new replacement in the long run.
Secondly, while browsing online, maintain several tabs open on various sites, ensuring that when a good deal appears, it can be swiftly compared to offers on other platforms, avoiding any delay in securing better prices elsewhere! Always keep an eye out for credit card perks like extended warranties and make the most out of your credit card benefits and rewards.
5. Cell Phone Coverage: Fortifying Your Connection
Losing your phone or having it stolen can be distressing, but credit card perks from companies can offer some relief. For instance, Citi’s Cell Phone Protection Program is a notable credit card perk, covering damage to your phone and theft if the device’s value is under $600.
This benefit remains available as long as you settle your monthly bill on time with a Citi credit card in good standing. This card should have a balance of less than $500 and shouldn’t have an annual fee. If these conditions are not met, charges apply: $10 per month if you’re under 20 years old or $15 per month if 20 or older.
6. Retailer-Specific Perks: Personalizing Your Rewards
If you’re a frequent shopper at a particular store, think about getting a credit card that offers perks at that retailer. For example, the Amazon Prime Rewards Visa Signature Card gives members 5% back on all Amazon.com purchases and 2% back at restaurants, gas stations, and drugstores (1% everywhere else).
The Citi Rewards+SM Card also offers special deals on movie tickets through Fandango with rewards points you can use toward your next trip or purchase. Another perk is 3X points per dollar spent when booking airfare through Orbitz.
Many other cards have similar deals—just check out a list of the best credit cards for travel rewards to see if one fits your needs!
7. Concierge Services: Enhancing Your Experiences
If you often find yourself wondering, “Can I get tickets to Hamilton?” or “Where can I find authentic tacos near my hotel?”, then you might want to consider leveraging credit card rewards by signing up for a concierge service.
These services are a special feature available through some credit cards, aiding you in tasks like planning travel arrangements and making restaurant reservations.
Convenience is key with these credit card rewards. To access the service, simply call the number on your card or log in online whenever you need it. There’re usually no additional fees required!
Bottom Line about these Credit Card Rewards
Understanding and taking advantage of the different credit card perks could transform your finances. In return your everyday transactions could be turned into rewarding experiences. By being vigilant and proactive, you can optimize these credit card benefits, ensuring you’re not leaving money on the table.
Note: You should always use your credit card with extreme caution, so you don’t bury yourself in credit card debts. See how not to bury yourself in credit card debts or how to wisely use your credit cards.
