Credit Card’s get a bad rap sometimes; however, there are many credit card benefits you may not be aware of. Have you ever bought clothes on line and when the clothes arrived at your home they didn’t look anything like the clothes you purchased online? Here is something that may surprise you. You can file a fraud claim as long as you show that the picture of the clothes you ordered and a picture of the actual clothes looked nothing alike.
Credit Card Benefit #1: Zero Liability
Most credit cards offer a zero liability policy for fraudulent credit card charges. According to the Fair Credit Billing Act (FCBA), you can only be liable for up to $50 in fraudulent credit card charges anyway – certain issuers just take it a step further. Furthermore the Federal Trade Commission states that “Your liability for unauthorized use of your credit card tops out at $50. However, if you report the loss before your credit card is used, the FCBA says you are not responsible for any charges you didn’t authorize. If your credit card number is stolen, but not the card, you are not liable for unauthorized use.”
CreDIT Card BENEFIT #2: Price Protection
Some cards offer price protection for large purchases such as stereo equipment, furniture, or appliances.
With Citi Price Rewind, for example, all you need to do is enter your receipt details into their system and wait – if a better price is found within 60 days, you’ll be notified. According to Citi, they issued almost 25,000 refunds from January to March 2015, with the average refund coming out to $31.73. While other cards offer similar price protection perks, Citi Price Rewind is the most popular.
CREDIT CaRD BENEFIT #3: Extended Warranties
What happens when you buy a new smartphone and exactly one day after its one-year warranty is up it dies? If you used a credit card with extended warranty coverage to purchase it, you may be able to score a full refund – or a new phone.
Fortunately, Visa, MasterCard, Discover, and American Express all offer similar extended warranties for products purchased with their cards, and this coverage adds up to an extra year of warranty protection. The best part is, all of this additional coverage is free.
CREDIT CARD BENEFIT #4: Trip Cancellation/Trip Delay Coverage
Although this benefit is less common, several cards offer trip cancellation or trip delay coverage. This coverage can come in handy if your flight is cancelled due to inclement weather or if an emergency or illness puts your trip on hold.
While some cards offer this perk for free, other cards, such as those from American Express, require a fee of up to $9.95 per person, per trip.
So just remember, if your card is used fraudulently, or the price drops on a major purchase, or you need an extended warranty or your flight is cancelled, you can take it easy because you are covered!
PS. Did you here about the recent new study, released by CardHub last week, that says Chase Sapphire Preferred, Chase Freedom, and Citi Prestige are the cards with the best overall benefits—especially ancillary travel perks and insurances that are often overlooked.