Competition for new credit card customers is so intense that banks often advertise features and benefits to make themselves stand out. Once you have a credit card, the issuing company may not remind you about your perks. Consumers’ Checkbook’s staff sifted through member benefits attached to credit cards and compiled some of the best. Caveat: as enticing and some benefits are, don’t pick a credit card based solely on those features; you’ll also want to compare annual fees, interest rates, and other details.
There are many reasons to pay with a credit card. Many offer cash back or points toward free travel or merchandise. Credit cards provide valuable consumer protection. Federal laws and the policies of credit card companies allow cardholders to contest charges for lousy services or products.
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Many cards also offer other benefits, which usually kick in when you use one to buy something. Log on to your credit card company’s website and check its member benefits pages to see what you have, then read the fine print to see how to access benefits. For example, for warranty coverage, a common roadblock is that you’ll have to provide full documentation of the purchase, including an original credit card receipt.
Here are examples of some of the best benefits Checkbook’s search turned up.
Extended warranties:We advise against buying them, but if they’re free, that’s different. Many credit cards extend the manufacturer’s warranty for items you charge. For example, the Citi Platinum Select Card will add to any warranty a 24-month plan, up to seven years total, to cover repairs—plus it will replace items lost or stolen within 90 days of purchase (reimbursements are capped at $10,000 per item). The American Express Gold Card offers a nearly identical perk, although its repair-or-replace provision lasts for only a year longer than any original warranty.
Reimbursement for damaged and stolen stuff: If you use your card to buy something that’s damaged or stolen within 90 days of purchase, if requested, many cards will offer a repair, replacement, or refund. Unfortunately, because these plans are secondary coverage, they’re not terribly useful; if something gets damaged in a fire, storm, or some other hazard covered by your homeowners or renters insurance policy, you first have to file a claim with your insurance company before you can collect from your credit card’s plan.
Guaranteed returns: Charge something to many American Express cards and the company will reimburse you up to $300 if you attempt to return it to the store within 90 days but the retailer won’t take it back (there’s a maximum of $1,000 per card, per year, for this perk).
Free shipping via ShopRunner: If you have an American Express or World or World Elite Mastercard, you can join ShopRunner—an Amazon Prime competitor offering two-day shipping and free returns for 100+ retailers—and skip ShopRunner’s $79 annual membership fee.
Price protection: Some credit cards let you apply to receive a refund if, within a few weeks of purchasing something, you find you could have bought it for less. You usually must show receipts and proof of the lower price to get the credit. Before you do all that work, check whether the retailer itself has a price-matching policy; many stores do.
Preferred boarding and more: Airline-affiliated rewards cards usually allow you to board before the non-premier-tier masses and check luggage for free. These perks kick in only if the primary cardholder is part of the itinerary and if you pay for the trip using the airline’s card.
Reimbursement for TSA PreCheck, Global Entry, or Clear frequent traveler programs: The Capital One Venture Rewards card, for example, provides a statement credit up to $100 for Global Entry or TSA PreCheck enrollment (Global Entry includes PreCheck automatically). American Express Platinum provides either $120 every four years for a Global Entry application fee or a credit up to $85 every 4.5 years for a TSA PreCheck application fee. Free Clear memberships are available to cardholders of certain American Express cards, including Green, Platinum, and Centurion.
Travel insurance: Trip-protection policies sold by airlines and travel-booking companies are generally bad buys. Their value is so low that some credit cards provide similar protection gratis. Some credit cards refund airfare or prepaid hotel charges if illness or weather affects your trip. Some reimburse for lost baggage or pay out if there’s an accident and you die, are dismembered, lose your eyesight, or other morbid scenarios.
Cellphone protection coverage: Many (mostly high-end) credit cards now offer this benefit, which kicks in if your phone is damaged or stolen. To qualify, you usually must use the card to buy your phone and to make your monthly payments. Instead of paying the entire cost of repairs or replacement on your own, you can use your coverage to pay some of the cost. For many, this can save hundreds of dollars. Coverage generally applies to all phones included on the cell phone bill. Payout limits and deductibles vary by credit card, so read your card agreement carefully. U.S. Bank’s Platinum Card, for example, offers up to $600 per claim for damage or theft when your monthly bill is paid with that card, with a $25 deductible per claim; there’s an annual $1,200 maximum payout.
Rental-car coverage: In the last few years, some cards dropped this type of benefit, but many still provide limited protection (typically, collision damage waiver coverage) when you rent using their cards. Checkbook has a very dim view of the policies pushed by rental companies—you are usually already covered against big risks via your personal auto policy.
Credit report monitoring: Many cards will email you if your credit score changes or an affiliated credit bureau reports that it received an application for new credit. Offering this perk helps protect both you and your credit card company, but a far better way to thwart identity thieves is to place security freezes with all three credit bureaus.
Museums for free: Bank of America, Merrill, and Bank of America Private Bank credit or debit cardholders get free access to more than 225 cultural institutions nationwide during the first full weekend of every month.
Think outside the box office: Many cards offer access to special seating options, presales, and other insider benefits for concerts, theater, and more.
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Checkbook.org is a nonprofit organization with a mission to help consumers get good service and low prices. It does this by providing unbiased ratings, advice, and price information. Checkbook is supported by consumers and takes no money from the service providers it evaluates.
