Are you hesitant about applying for a credit card? If so, you’re not alone. Many of our members have had bad experiences in the past with hidden fees and unscrupulous lenders.
However, if you don’t have a card, you might be missing out on some credit card benefits that could help you get your finances in order. With that in mind, here are four unexpected benefits of using a credit card.
1. Disputing a Payment
If you pay for a product or service in cash and end up being dissatisfied, your only recourse is to try to return the product or get a refund. But what happens if the person responsible for the problem refuses to take responsibility? If you can’t afford to take them to court, you’ll be out the money.
When you pay with a credit card, you can dispute any charge. The financial institution will investigate the claim and if they find it to be legitimate, they’ll issue a chargeback.
The chargeback credits the disputed amount to your credit card. Then, the financial institution who issued the card goes after the person or company responsible for the disputed payment.
In other words, paying with a credit card offers you some peace of mind when you pay for something. In the event something goes wrong, you can dispute the charge. There may be some limitations depending on the card issuer’s policies, but provided you follow them, you should be able to get your money back.
2. Extended Warranties
Some manufacturers offer a lifetime warranty on the products they sell, but most offer limited warranties. What you may not know is that some credit cards offer extended warranties to cardholders.
The specifics vary from card to card, but in some cases, the credit card issuer will offer an additional 12 months’ warranty at no charge to the cardholder.
As you might expect, there are some limitations. For example, you won’t qualify for an extended warranty for a product that doesn’t come with a manufacturer’s warranty. Likewise, you’ll have to file your claim soon after the product breaks, usually within 30 or 60 days.
Extended warranty protection offers consumers a safety net for big purchases.
3. Travel and Emergency Services
If you travel frequently, then paying with a credit card can have significant benefits, especially in emergency situations. For example, picture yourself having a legal, medical or transportation crisis in the middle of a foreign country. Scary, right? With the help of the Benefit Administrator, you can be assisted to the appropriate local emergency resource even while traveling.
Likewise, some credit card issuers offer replacement ticket and lost luggage assistance, which can benefit you in the event of an emergency.
You should also keep in mind that some credit cards offer roadside assistance and automobile rental accident insurance if you’re traveling by car. With this benefit, in the event of an accident, you can be reimbursed up to the original value of the car when first manufactured. Taking into account that cars depreciate in value over time, this can become paramount as damages can exceed reimbursements many times.
With roadside assistance services these issuers can send emergency vehicles to your location, transporting you home or to the nearest medical facility. They will even make arrangements to get your young children home and keep an open line of communication between families and those hurt if the situation was an emergency.
4. Cellular Telephone Protection
One of the most overlooked and surprising benefits that some credit card issuers provide is cell phone protection. In situations where you weren’t anticipating to have to deal with phone problems or loss of one, this can be an incredible benefit to have in your back pocket.
This supplemental coverage can reimburse you in the case that your phone is damaged or stolen and is a great resource when your other forms of insurance don’t cover, or fully cover, this expense. Some manufacturers, as well, can cover your next two additional lines, so if a secondary phone owner on your account has the problem, you can cover them as well.
The specifics of how you’re reimbursed can vary from each credit card but some will provide a $250.00 excess of a $50.00 deductible or provide you a replacement cell phone of a similar quality and retail price.
Phone companies can charge hundreds of dollars for stolen or damaged phones, situations where the loss of the property wasn’t your fault. When this is the case, going through your credit card can be a lifesaver to your bank account.
Paying with a credit card can be a very good thing in some situations. If you get a card that features any of these hidden benefits, it’s worth using it to take advantage of the protections offered.
Click here to learn more about the credit card benefits offered by Addition Financial.
Posted on Dec 8, 2017
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