7 Benefits of Credit Cards You’ve Probably Never Heard of

It’s no secret that credit Cards can be extremely rewarding if you pay off your bill in full every month and avoid paying any interest. Credit cards often come with hidden benefits that are often buried in the fine print or not mentioned at all by the issuer; hence most people are unaware of such great perks. Today, we will give you our top 7 hidden gems most credit cards provide that you’ve probably never heard of!

1. Balance Transfer

A credit card balance transfer can be a great way to save money and even get a low or 0% interest-free loan for a certain duration (can last between 6 – 18months). The offer can be used to pay off other debts that have a higher interest rate. For example, when I received my first credit card, I took out a $2000 balance transfer at 0% interest for 18 months. I immediately used this money to pay off a high-interest student loan. I then had 18 months to save up and pay for the balance transfer in full with $0 of interest charged.   

How it Works: Balance transfer offers to differ over time. Simply call your issuer and ask them if you are eligible for any offers.  If they say no, try another time as the offers keep changing.

2. Credit Score

If you keep your credit card in good standing and avoid missing any payments, it will improve your credit score overtime. A good credit score will help you avoid getting a high interest rate for any future loan. Credit card issuers often offer free FICO scores as a perk.

3. Fraud Protection

Most credit cards offer a zero-liability policy for fraudulent charges. This means if your card is stolen the bank will credit back all unauthorized purchases and will not hold you accountable for the charges.

How It Works: If you noticed an unauthorized transaction on your card statement, call the issuer and provide the details of the fraud. The bank will issue you a refund if the transaction is deemed to be fraudulent.

4. Rental Car Insurance Coverage

The majority of credit cards come with free rental car insurance coverage which protects drivers against accidents or theft.  

How It Works:  If your card offers this benefit, simply use your card for any car rental. If you end up needing the coverage, you can call your credit card issuer to file your claim.

5. Travel Insurance

Most cards offer insurance if your trip is canceled by you or delayed/canceled by the airline. This coverage is helpful if you must cancel a trip at the last minute due to a critical emergency, the credit card company may fully refund your flight if your reason is deemed critical. Some credit cards go as far as paying for accommodation and food if your flight is delayed more than a certain number of hours.  In addition, if your luggage is stolen or delayed while traveling, your card may compensate you for the delay or missing luggage.

6. Extended Warranty

If you purchase an item and the manufacturer warranty expires, most credit cards will extend the warranty for another year or more.

7. Price Protection

Have you ever purchased an item and the price drops soon afterward? Yea it hurts, but some credit cards will refund you the difference if the price of an item is reduced.

As you can see, these benefits can save you money when invoked. You should call your credit card issuer to confirm if your credit card is equipped with some of these great perks, to your surprise, you may get more benefits that what I’ve highlighted.

 

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