Credit cards are often associated with debt and overspending, but did you know that they can also offer a range of money-saving features? Beyond their convenience and rewards programs, credit cards come with several hidden perks that can help you save money and improve your financial well-being. In this blog, we will explore ten hidden money-saving features of credit cards that you may not be aware of.
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Price Protection
Price protection is a valuable feature offered by some credit card issuers that can save you money on your purchases. It works by refunding the price difference if you buy an item with your credit card and later find it at a lower price. This feature is particularly useful during sales events or when prices drop after major shopping seasons. However, keep in mind that each credit card company has its own terms and conditions regarding price protection, including the maximum refund amount and time window for filing a claim. Read your credit card’s policy carefully to take full advantage of this money-saving feature.
Extended Warranty
Purchasing extended warranties for expensive products can add to the overall cost. Fortunately, some credit cards offer extended warranty protection as a hidden perk. When you use your credit card to make a purchase, the manufacturer’s warranty may be extended for an additional period, usually doubling the original warranty up to a certain limit. This feature can save you on repair or replacement costs for electronics or appliances. However, remember to understand the specific terms and conditions, such as the eligible items and the length of the extended warranty, before relying solely on this benefit.
Rental Car Insurance
When you rent a car, the rental agency typically offers insurance coverage, which can significantly increase your rental expenses. However, many credit cards provide rental car insurance as a hidden feature. If you use your credit card to pay for the rental and decline the rental company’s insurance, you may be covered in case of an accident or theft. This can lead to substantial savings during your travels, especially if you frequently rent cars. Nevertheless, not all credit cards offer this benefit, and some may have specific requirements, such as the type of vehicle or location, so be sure to check your card’s policy before relying on it for rental car insurance.
Travel Insurance
Travelling can be unpredictable, and unexpected incidents can quickly turn a dream vacation into a financial nightmare. Thankfully, some credit cards offer travel insurance as an often-overlooked benefit. This coverage may include trip cancellation or interruption insurance, lost baggage reimbursement, travel accident insurance, and even emergency medical assistance. Before your next trip, review your credit card’s travel insurance policy to see if it provides adequate coverage. If it does, you can save money by skipping additional insurance offered by airlines or travel agencies. Remember that the extent of coverage may vary between credit card issuers, so it’s essential to know the details of your specific card’s policy.
Price Matching
Price matching is another hidden money-saving feature that some credit card companies offer. This feature allows you to get a refund of the price difference if you find a lower price for a purchased item within a certain period, usually within 60-90 days. Price matching can be a great way to save money, especially when purchasing big-ticket items. However, not all credit cards provide this benefit, and those that do may have specific requirements regarding eligible items and the maximum refund amount. Keep in mind that price matching policies can change, so it’s essential to stay updated on your credit card’s current terms to make the most of this feature.
Purchase Protection
Have you ever bought something only to see it damaged or stolen shortly after? Some credit cards come with purchase protection, which can save you money in such unfortunate situations. When you use your credit card to purchase an eligible item, it may be covered against damage or theft for a certain period, typically within 90 days of purchase. This means you could get a refund or replacement for the item, sparing you from an additional expense. However, remember that there are usually limits on the coverage amount and certain exclusions, so carefully read the terms and conditions of your credit card’s purchase protection policy.
No Foreign Transaction Fees
When you travel internationally or make purchases in foreign currencies online, many credit cards charge foreign transaction fees, typically around 3% of each transaction. These fees can add up quickly and eat into your budget. Fortunately, some credit cards offer a hidden money-saving feature by waiving foreign transaction fees. Using such a card can save you a significant amount, especially if you frequently travel abroad or shop on foreign websites. Be aware that not all credit cards have this perk, so if you’re a frequent international traveller, it’s worth looking for a card that provides this feature to maximize your savings.
Cashback Match
Cashback rewards are a well-known benefit of credit cards, but some issuers go a step further with cashback match programs. With these programs, the credit card company matches the cashback you’ve earned during the first year or a specified period. Essentially, it doubles your cashback earnings, helping you save even more money. If you have a credit card with cashback rewards and a cashback match program, it’s an excellent opportunity to boost your savings on everyday purchases. However, be sure to understand the terms and limitations of the cashback match to make the most of this money-saving feature.
Membership Rewards Transfer Partners
Some credit card rewards programs offer the option to transfer points to various travel partners, such as airlines or hotel chains. This hidden money-saving feature can be incredibly valuable when you’re planning a trip. By transferring your credit card points to travel partners, you can often get more value out of your rewards, allowing you to book flights, hotel stays, or other travel-related expenses at a discounted rate. Before transferring points, it’s essential to compare the value you’ll receive from each partner and ensure that the transfer makes financial sense for your specific travel plans.
Low-Interest Balance Transfers
If you’re carrying a balance on a high-interest credit card, you may be paying a considerable amount in interest charges each month. However, some credit cards offer low-interest or even 0% APR balance transfer promotions. Transferring your existing balance to one of these cards can save you money on interest and help you pay off your debt faster. Keep in mind that balance transfer offers often come with a specific promotional period, so it’s essential to pay off your balance before the promotional rate expires to maximize the savings. Additionally, check if there’s a balance transfer fee, as this can impact the overall benefit of the transfer.
In a nutshell,
Credit cards offer more than just a convenient way to make purchases. By understanding and taking advantage of their hidden money-saving features, you can improve your financial well-being, save money on various expenses, and make the most of your credit card usage. However, always read the fine print and be aware of any limitations or conditions associated with these features to ensure that you can fully benefit from them. If you are interested in more such articles then check out the zeen website.
