Credit cards are not just tools for making purchases and building credit; they come with a host of perks that can offer substantial benefits. While most people are familiar with common perks like cash back and travel rewards, many credit cards also offer lesser-known benefits that can provide significant value. In this comprehensive guide, we will explore both common and surprising credit card perks and how you can take full advantage of them. Let’s dive in.
Common Credit Card Perks
Cash Back and Rewards
One of the most popular credit card perks is the ability to earn cash back or rewards points on your purchases. These rewards can add up quickly and be redeemed for cash, statement credits, travel, or merchandise.
Types of Cash Back and Rewards Programs
- Flat-Rate Rewards: These cards offer a consistent percentage of cash back on all purchases, such as 1.5% or 2%.
- Tiered Rewards: These cards provide higher cash back percentages in specific categories like groceries, dining, or gas.
- Rotating Categories: These cards offer bonus cash back in categories that change quarterly.
Maximizing Cash Back and Rewards
To maximize your cash back and rewards, focus on using cards that align with your spending habits. For example, if you spend a lot on groceries, choose a card that offers higher rewards for grocery purchases. Additionally, pay attention to quarterly bonus categories and adjust your spending to take full advantage of these opportunities.
Travel Points and Miles
Travel rewards credit cards allow you to earn points or miles that can be redeemed for flights, hotel stays, and other travel-related expenses. These cards often come with additional travel perks, such as priority boarding, free checked bags, and airport lounge access.
Examples of Travel Rewards
- Airline Miles: Earn miles with a specific airline that can be redeemed for flights and upgrades.
- Hotel Points: Earn points with a hotel chain that can be redeemed for free nights and other benefits.
- General Travel Points: Earn points that can be redeemed for travel expenses through the credit card issuer’s portal.
Strategies for Earning Travel Rewards
- Book Travel Through Card Portals: Many cards offer bonus points for booking travel through their own travel portals.
- Take Advantage of Transfer Partners: Transfer your points to airline and hotel partners to maximize their value.
- Combine Points with Promotions: Look for promotional offers and bonus points opportunities to boost your earnings.
Lesser-Known Credit Card Benefits
Price Protection
Price protection is a valuable perk that allows you to get a refund if an item you purchased with your credit card drops in price within a certain timeframe. This benefit ensures you always get the best deal.
How It Works
- Eligible Purchases: Make a purchase with your credit card.
- Track Prices: Monitor the price of the item for a specified period (usually 60-90 days).
- File a Claim: If the price drops, submit a claim with proof of the lower price to receive a refund for the difference.
Tips for Using Price Protection
- Keep Receipts and Documentation: Maintain records of your purchases and any price drops.
- Use Price Tracking Tools: Utilize online tools and apps to monitor price changes.
- Know the Policy Limits: Understand the maximum refund amount and claim period for your card’s price protection benefit.
Extended Warranties
Many credit cards offer extended warranties on purchases made with the card. This benefit can extend the manufacturer’s warranty by an additional year or more, providing extra protection for your purchases.
Benefits of Extended Warranties
- Additional Coverage: Extend the standard warranty period at no extra cost.
- Peace of Mind: Enjoy longer protection for electronics, appliances, and other high-ticket items.
Maximizing Extended Warranties
- Register Your Purchases: Some credit cards require you to register your purchases to qualify for extended warranties.
- Understand the Coverage: Know what is covered and the process for filing a claim.
- Keep Purchase Documentation: Retain receipts, warranty information, and any registration confirmations.
Purchase Protection
Purchase protection covers eligible items against theft, damage, or loss for a certain period (usually 90-120 days) after the purchase date. This perk provides an extra layer of security for your new purchases.
How to Use Purchase Protection
- Eligible Purchases: Make a purchase with your credit card.
- File a Claim: If the item is stolen, damaged, or lost, file a claim with the credit card issuer, including proof of purchase and the incident.
Tips for Using Purchase Protection
- Know the Claim Process: Understand how to file a claim and what documentation is required.
- Report Incidents Promptly: File claims as soon as possible after the incident occurs.
- Understand Coverage Limits: Be aware of the maximum coverage amount and any exclusions.
Return Protection
Return protection allows you to return eligible items to the credit card issuer for a refund if the retailer won’t accept the return. This benefit typically covers items for 90 days from the purchase date.
Return Protection Process
- Eligible Purchases: Buy an item with your credit card.
- Attempt to Return: Try to return the item to the retailer first.
- File a Claim: If the retailer won’t accept the return, file a claim with the credit card issuer, including proof of purchase and the retailer’s refusal.
Maximizing Return Protection
- Understand the Policy: Know the types of items covered and any exclusions.
- Keep Purchase Documentation: Retain receipts and any correspondence with the retailer.
- Follow Claim Instructions: Adhere to the credit card issuer’s process for filing claims.
Travel-Related Perks
Airport Lounge Access
Airport lounge access is a premium perk offered by many travel credit cards. Lounges provide a comfortable space to relax, enjoy complimentary food and beverages, and access Wi-Fi while waiting for your flight.
Benefits of Lounge Access
- Comfort and Convenience: Escape the crowded airport terminal.
- Amenities: Enjoy complimentary snacks, meals, drinks, and Wi-Fi.
- Workspaces: Use dedicated work areas and conference rooms.
Tips for Maximizing Lounge Access
- Know Your Card’s Lounge Partners: Understand which lounges you have access to with your card.
- Register for Lounge Programs: Some cards require registration for lounge access programs like Priority Pass.
- Take Advantage of Lounges During Layovers: Use lounges to relax and refresh during long layovers.
Travel Insurance
Travel insurance offered by credit cards can cover a range of incidents, including trip cancellations, lost luggage, and travel accidents. This coverage can save you money and provide peace of mind during your travels.
Types of Travel Insurance
- Trip Cancellation/Interruption: Reimburses non-refundable travel expenses if your trip is canceled or interrupted for covered reasons.
- Lost Luggage: Covers the cost of lost or damaged luggage.
- Travel Accident Insurance: Provides coverage in the event of a travel-related accident.
Maximizing Travel Insurance Benefits
- Understand the Coverage: Know what is covered and the exclusions.
- Keep Documentation: Retain receipts, travel itineraries, and any incident reports.
- File Claims Promptly: Report incidents and file claims as soon as possible.
Free Checked Bags
Many airline-branded credit cards offer free checked bags as a perk. This benefit can save you money, especially if you frequently travel with checked luggage.
Savings with Free Checked Bags
- Cost Savings: Avoid baggage fees, which can be $25 or more per bag.
- Convenience: Travel more comfortably without worrying about additional fees.
Tips for Using Free Checked Bags
- Use the Card for Booking: Ensure you use the card to book your flights to qualify for free checked bags.
- Know the Terms: Understand the number of free checked bags and any restrictions.
Everyday Perks
Discount Programs
Credit card discount programs offer savings at participating retailers and online stores. These discounts can include cash back, percentage off, or special promotions.
Types of Discounts
- Retail Discounts: Save on purchases at major retailers.
- Dining Discounts: Enjoy savings at participating restaurants.
- Online Shopping: Access exclusive deals when shopping online.
Maximizing Discount Programs
- Check Offers Regularly: Stay updated on available discounts and promotions.
- Register for Offers: Some discount programs require you to activate offers before using them.
- Combine Discounts: Use credit card discounts along with retailer promotions for additional savings.
Concierge Services
Concierge services provided by some premium credit cards offer personalized assistance for a variety of needs, from making travel arrangements to booking dining reservations and event tickets.
Benefits of Concierge Services
- Travel Planning: Get help with booking flights, hotels, and car rentals.
- Event Access: Secure hard-to-get tickets for concerts, shows, and sports events.
- Dining Reservations: Enjoy VIP treatment with reservations at top restaurants.
Tips for Using Concierge Services
- Understand the Services: Know the types of assistance available through your card’s concierge service.
- Plan Ahead: Request concierge services in advance, especially for high-demand events and reservations.
- Use for Special Occasions: Leverage concierge services for planning special events and trips.
How to Take Advantage of Credit Card Perks
Reading Your Card’s Benefits Guide
To fully utilize your credit card perks, start by reading the benefits guide that comes with your card. This guide provides detailed information about the perks, how to use them, and any limitations or exclusions.
Key Sections to Review
- Overview of Benefits: Understand what perks are available.
- Terms and Conditions: Know the rules and restrictions.
- How to File Claims: Learn the process for accessing benefits.
Registering for Benefits
Some credit card perks require registration or activation before you can use them. Make sure to register for any relevant benefits to ensure you don’t miss out.
Common Benefits Requiring Registration
- Price Protection: Register purchases to track price drops.
- Extended Warranties: Enroll eligible items for extended coverage.
- Concierge Services: Set up your account to access personalized assistance.
Maximizing Usage
To get the most out of your credit card perks, use them regularly and strategically. Keep track of which cards offer the best benefits for different types of purchases and plan your spending accordingly.
Tips for Maximizing Perks
- Use the Right Card for Each Purchase: Match purchases with the card offering the best perks for that category.
- Stay Informed: Keep up with changes to your card’s benefits and any new offers.
- Take Advantage of Offers: Look for special promotions and limited-time offers from your credit card issuer.
Conclusion
Credit cards offer a wealth of perks beyond just making purchases. By understanding and utilizing these benefits, you can save money, protect your purchases, and enjoy a range of conveniences and luxuries. Whether you’re taking advantage of cash back and travel rewards or exploring lesser-known perks like price protection and concierge services, your credit card can provide significant value when used wisely. Be sure to read your card’s benefits guide, register for applicable perks, and maximize your usage to get the most out of your credit card.