When people go shopping for a credit card, most will compare the various card features and benefits and use that information to make their decision as to which credit card to apply for. People use credit cards primarily because they give them away to purchase an item and pay for them a little at a time, instead of coming up with the cash all at once – but that same buy now, worry-about-paying-later mentality has gotten a number of people into financial troubles.
If you use a credit card correctly though, they actually give you a little something back. You probably chose your credit card because of some of these features – but chances are you haven’t used them because you forgot all about them once you started using your card! Here are four things your credit cards give you that you probably forgot about – and that you should look into in order to benefit the most from your credit card use:
- Rental Car Insurance: With most credit cards – if you rent the vehicle on the credit card you can decline any additional car rental insurance because it’s included with your credit card automatically. Paying extra for insurance to the car rental company is unnecessary when you’re automatically covered under most credit cards. If renting a car, check your card details to see if you’ll have coverage before buying.
- Proof of Purchase: How many times have you purchased something only to find out a few days later it’s broken or doesn’t fit? You can’t return the items without receipts most of the time and it’s so easy to lose those little store receipts! Your credit card statement (through the mail or online) can serve as proof of purchase and be used as a receipt at the store to prove you purchased the item (and then get your money back or exchange it).
- Theft and Damage: Did you know that many credit cards will cover you against theft or damage if the issue occurs within 90 days of buying it? If an item is stolen or damaged within 90 days, keep good documentation and call the credit card company for assistance.
- Extended Warranty Coverage: Have you purchased extended warranties at the checkout line for electronics or toys? If you’re using a credit card that gives you extended warranty coverage on everything you buy automatically, the money you’re spending is a waste. There are many cards that offer extended warranty coverage up to one year after the standard warranty for no additional charge – you just have to know you have it if your items break during that time to take advantage of the coverage.