A credit card is a basic financial tool used for buying things and building credit. However, there’s more to it than meets the eye. These little pieces of plastic (or sometimes metal) come with a range of lesser-known benefits and features that often go unnoticed. In this article, we’ll explore some of these hidden advantages that can enhance your spending and bring unexpected value to your wallet. Let’s begin!
5 Lesser Known Advantages of Having Credit Cards
1. Protection on Purchase
You’ve recently bought something expensive and were excited to unbox it, but then you discover it’s damaged. However, there’s still hope. Your credit card has a purchase protection feature that covers the cost of fixing or replacing the item for a certain period. Didn’t know about this feature, did you?
2. Extension on Warranty
It’s a common occurrence: electronics and appliances often break down right after their manufacturer’s warranty ends. But here’s the good news: some credit cards provide extended warranty protection, giving you extra coverage beyond the original warranty. This can save you a lot on repair or replacement costs in the long run.
3. Insurance Coverage on Travel
While many travellers are aware of the travel discounts and lounge access perks that credit cards offer, they often forget about the built-in travel insurance coverage. Whether it’s trip cancellations or lost luggage, you can travel with confidence, knowing you’re protected.
4. Reclaim Price Drop on Products
Have you ever bought something and then seen the price drop shortly after? What if I told you that you could get that price difference back? It’s easy – just check if your credit card has price protection. If it does, you can request a refund for the price difference, making sure you never pay more than you have to.
5. Assistance if the Car Breaks Down
Picture this: your car breaks down, and your credit card can actually help you out with roadside assistance.
All you have to do is call the number on the back of your card, and they’ll arrange for a local tow truck to come to your rescue. You might need to use your credit card to pay for it, but some premium cardholders even get this service for free.