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| Use Credit Cards for Warranty, Insurance, and other Benefits |
| Written by Dongmiao Cui |
 Credit card companies often attempt to offer special benefits to their members to retain old customers and attract new ones. Unfortunately, many of these benefits are not available to pre-platinum level cards. So it is perhaps a good idea to call your credit card companies to check if your cards are considered for the perks. You can find the phone number on the back of your cards. Free Extended Manufacture Warranty Extending manufacture warranty is a kind of shopping protection provided by some credit cards. This perk is extremely valuable because it typically extends or doubles the original brand warranty for up to one year. For example, if you bought a computer with a 1-year manufacture warranty, your credit card would automatically double the length of the warranty and cover the computer for the second year. This feature is superb when you buy electronics and other items that you suspect might have problems over time. Just make sure that the entire purchase amount is paid for with the card. There are many credit cards that offer this perk: Blue from American Express, American Express Premier Rewards Gold, American Express Platinum, and Starwood Preferred Rewards Card. Free Car Rental Insurance Since the late 90’s, free car rental insurance has become a standard among many platinum level credit cards and is offered to every card by American Express. Many credit cards offer certain collision and theft protection. To use this perk, you will have to pay for the entire car rental amount with the credit card and decline the damage and lost coverage (D/L) provided by the car rental agency. Just tell the rental agent that your credit card covers your rental insurance (the agent should be able to understand). This can save you about $10-$25 per day of your car rental. Some of the prominent cards that are known to offer this perk include the Blue from American Express, Discover More Card, Citibank Platinum Select, Chase Sapphire Card, and Chase Freedom Card. However the insurance coverage is always limited to who is covered, at what level, in what vehicles and where (please see the chart below for the key factors). You might still be liable for some charges in the event of an accident. You will typically be required to pay for the damages yourself and then your credit card company reimburses the amount afterward. As a rule of thumb, always file a police report as required by the credit card company for your reimbursements.  Satisfaction Guarantees This perk has become very common among credit cards as a form of shopping protection. If you bought a pair of shoes whose sole tore open a month later and the store refuses to exchange it for another pair, you can contact the credit card company and they will refund you the amount you paid. Again, American Express Cards have actually taken this further. If you try to return a purchase before the deadline of the purchase and the merchant refuses to take it back, American Express will actually issue you refunds up to $300 per item for an annual total of $1000 per card account! Some of their most notable cards include Blue from American Express (a good card with no annual fee and has this feature), Starwood Preferred Guest Card, and the American Express Premier Rewards Gold Card. Best Value Guarantee (BVG) One of the biggest holdbacks that you might face is: what if the price drops or cheaper elsewhere? Some stores will price match and price adjust if you see the same item advertised elsewhere within 30 days. Better yet, there are actually credit cards that will take care of the price gap for you! This perk even applies for purchases from stores that do not have a price-match guarantee. For example: you bought a camera for $300 on Amazon and the same camera is advertised for $250 at Ritz Camera two weeks later. Amazon does not price match so you cannot request a $50 credit from them. However, if you bought it with a card that has a BVG; you can simply call your credit card company and file the request along with providing a scan (or email) copy of the advertisement indicating the $250 price. The credit card company will in turn refund you the $50 difference. While the list of credit cards that offer this feature has gone down, many of the higher end cards still offer it. Some of the cards on the list include Starwood Preferred Guest Card, Platinum Card from American Express, and American Express Premier Rewards Gold Card. Free Upgrades for Hotels, Car Rentals, and Airlines To win over business professionals that are often on the road, some credit card companies offer very special perks such as free access to VIP lounges in airports, expedited car rentals, and free hotel room upgrades. However only very few cards offer such perks at the moment and they do come with annual membership fees. The most common ones include:
This benefit is offered by most of the credit cards nowadays to protect you from unsatisfied online purchases. If you bought a keyboard and they shipped you a mouse instead and refuse to ship you a keyboard or pay for the return postage, just give your credit card company a call. Your credit card company pays the merchant and has a much greater influence on them. In fact, most credit card company will simply void the transaction if it is deem to be the merchant’s fault. In addition to online purchase, this perk applies to in-store purchases as well. If you buy a pair of shoes and its soles are worn out within 2 weeks, you can contact your credit card company if the merchant refuses to work out an exchange with you. It is always a good idea to keep the confirmation email from the merchant for things you buy. In the event of a dispute, your credit card company will be able to better assist you if you provide the records.
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| Last Updated on Wednesday, 28 July 2010 14:30 |
