Credit card companies have been getting a lot of bad publicity in recent months. If you have a credit card, you've probably gotten a letter from the card issuer telling you that your credit limit has been cut, or your interest rate is rising, or even that they're closing your account.
That said, credit cards still offer some great benefits, but many cardholders never take advantage of these extra features, or even realize they exist. Did you know, for example, that many credit card companies will double the length of the warranty on a purchase you charge to your card? Several months ago the mouse on my laptop computer stopped working. The computer came with a one-year manufacturer's warranty, and the mouse quit after 18 months. I called up my credit card company and provided them with some basic information. Within a day they told me to take the computer for repairs and then send them the bill so I could be reimbursed for the cost of repairs. Ultimately, it saved me about $400.
These extra credit card benefits can save you money, time and headaches if you take advantage of them. Among the more popular:
Extended Warranty: Many credit card companies will double the warranty on your purchases for up to a year. If the item breaks after the manufacturer's warranty expires, but during the credit card company's extended warranty period, the credit card company will coordinate repair work or reimburse you for repair costs.
Theft, Loss and Damage Coverage: Did you wash your new iPod? Was your new camera stolen? Many card companies will replace or repair an item if it is lost, stolen or accidentally damaged within the first 90 days that you own it.
Return Protection: If a merchant refuses to let you return an item, your credit card company may refund you the item's purchase price, provided it's still in like-new condition and you bought the item recently.
Loss and Damage Insurance on Car Rentals: If you charge a car rental to your credit card, you may be able to decline the collision damage waiver (CDW) because your credit card company automatically provides the same insurance for free. Before you rely on this, read the fine print. You may be ineligible for the coverage in some foreign countries or if your rental is for an extended period of time.
Travel Insurance: Traveling by plane, train, bus or boat? Your credit card company may automatically provide travel insurance that covers you in case of accidental death or dismemberment.
Protection in the Event of Merchant Disputes: Did a merchant overcharge you, make promises that they haven't honored or sell you one thing then deliver another? You can dispute a charge with your credit card company. They'll investigate your claim and refund your money if they find in your favor.
You're only eligible for these benefits if you charge the purchase to your credit card. Plus, not every credit card company offers the same benefits, so you'll want to learn which benefits come with your cards. Look on your credit card company's website for a "Card Benefits" section, or call the company and ask them to send you a list of the card's benefits. Be sure to read the fine print, because some exclusions may apply.
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