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Credit cards offer a variety of benefits that can help you save money, get out of a bind or both. To get the most out of your credit card, it's important to fully understand the benefits it offers. Here's how.
Understanding Your Credit Card Benefits
Always read the fine print in your credit card agreement to understand the terms and features of your credit card, and how to use them. Exclusions and limits often apply to credit card benefits, so it's important to know the coverage you have.
Credit card issuers typically send a summary of credit card benefits shortly after account opening. If you've misplaced yours, you can typically find a summary of your card benefits on your credit card issuer's website. You may need to log in to access the benefits for your specific credit card. Once you're logged in, look around the website for a tab or link labeled "Cardholder Benefits," "Rewards" or something similar.
Alternatively, you can also contact your credit card's customer service to request a summary of benefits. They can tell you where to find it online or email a copy to you.
Here are some benefits that are common among credit cards.
Rewards
When credit cards pay rewards, you can earn points, miles or cash back on the purchases you make. After you've accumulated a set amount of rewards, you can redeem them for a statement credit, hotel stay, flight, gift cards and more. Redemption options vary depending on your credit card.
Earn rewards for your spending
See your top credit card matches based on your credit profile and spending habits.
Get the right card to earn cash back or points on your purchases and maximize your perks.
Apply for rewards cards matched for you and that you’re more likely to qualify for.
Travel Benefits
In addition to earning travel rewards on purchases, many travel credit cards offer a number of travel benefits. These include:
- Baggage delay insurance
- Trip delay insurance
- Trip cancellation insurance
- Lost luggage insurance
- Travel accident insurance
- Checked luggage fee reimbursement
- Expedited security fee waivers
- Roadside dispatch assistance
You need to have booked travel with your credit card to use the travel benefits, but they can be valuable.
Purchase Protection
With purchase protection, your credit card will replace or reimburse you for purchases that are stolen or damaged as long as the purchase was made on your credit card. The purchase protection plan may have a set amount of time on coverage, a maximum amount that will be paid and a maximum amount they'll pay each calendar year.
Certain items may not be covered. For instance, cars, boats, antique goods and event tickets are commonly excluded from purchase protection benefits. You may not be covered for items that have protection under another kind of insurance, like a renters or homeowners insurance policy.
When you file a claim, you'll need some documentation to support your claim. This includes your original receipt and a credit card statement showing the purchase. If the item was damaged, you'll need a repair estimate. Or, if it was stolen, you may be required to show a copy of a police report.
Extended Warranty
Credit card extended warranties offer additional warranty time added on to the manufacturer's original warranty. The extended warranty protection is automatic when you make a purchase using a credit card that offers the benefit.
Limits may apply to the warranty length or the claim amount for each item.
To make a claim, you may have to provide certain documentation including the original receipt, proof of the manufacturer's warranty, proof that you made the purchase with an eligible credit card and a description of the damage that prompted the warranty claim.
Cellphone Protection
Depending on your credit card, you may get automatic cellphone insurance protection when you pay your cellphone bill with your card. Cellphone protection may replace or repair your stolen or damaged cellphone.
To make a claim, you'll typically need to provide some documentation for your claim, like proof that you paid your last cellphone bill with your credit card. A deductible and coverage limits may apply.
Concierge Services
Having a credit card concierge service is like having a personal assistant to help you complete everyday tasks. A concierge can assist with things like buying tickets to events, making reservations or delivering gifts. To use your credit card's concierge, call customer service and make your request.
How to Get the Most out of Your Credit Card
There are several ways to get more out of your credit card. Understanding the benefits offered by your card issuer can help you navigate when you can rely on your card issuer's protection.
- Know your rewards schedule. You may be able to earn bonus rewards on purchases in certain categories. Make sure you read the fine print to see if this applies and what categories are eligible. You may have to enroll by a certain date to earn bonus rewards, or the amount you can earn may be capped each quarter.
- Make the most of an introductory 0% APR. If the promotional rate only applies to balance transfers, avoid making new purchases on your card. They won't get a grace period. Pay off as much of your balance as you can (the goal is to pay the entire balance) during the promotional period so you completely avoid paying interest.
- Learn your card's discounts. If your credit card offers discounts on things like ride-share or restaurants, make sure to take advantage of these to save more money.
- Cancel or decline duplicate protection. For instance, you can save money by canceling cellphone protection offered through your cellphone provider. You can save on car rental costs by declining the rental agency's collision protection if your card issuer offers coverage. Use your credit card's extended warranty rather than purchasing separate coverage from the retailer.
Are Your Credit Card's Benefits Right for You?
Even when the benefits sound good, it's important to make sure they make sense for your lifestyle and spending habits, especially if the card comes with an annual fee. Compare your current credit card benefits to your current spending habits to determine whether you can take advantage of the perks your card issuer offers.
If your credit card benefits aren't a good match, you may be able to switch to another credit card with the same issuer. This process—known as a product change—allows you to avoid a new credit card application. In some cases, you can keep your credit limit and account history while gaining access to a credit card that suits you better.
You can also shop around for a credit card offered by another card issuer. Compare the benefits offered and your current spending. Choose a credit card that you're more likely to use and whose benefits you can get value from.
The Bottom Line
Taking advantage of your credit card benefits allows you to get more value from using your credit card. If you want to be sure you're getting the best rewards, Experian helps you compare credit card offers side by side to find the one that's right for you.