Credit cards get a lot of attention for their rewards, but many of them offer other features and perks that don’t get quite as much of the limelight. Keep in mind, not every credit card offers every benefit. And for those that do offer one or more of these features, the terms of the benefit can differ depending on the card and the credit card issuer.
If you know the credit card perks that are out there, you can check what features your credit card has beyond its rewards program and start making the most out of them. You’ll also know what perks to keep an eye out for next time you think about opening a new credit card. To that end, we’ve put together a list of common perks and how to make the most out of them in your everyday use.
Shopping and entertainment perks
Some of these benefits come automatically as you make your regular everyday purchases. With others, however, you may need to do a little extra legwork.
Fraud protection
With this benefit, your credit card issuer may monitor your account and flag potentially fraudulent transactions. It may also eliminate your financial liability if someone uses your credit card without your authorisation.
Extended warranty
When you buy an item with your card that comes with a manufacturer’s warranty, this benefit will extend that warranty by one or more years. But different terms apply based on the credit card issuer. Also, the benefit likely won’t kick in if the manufacturer’s warranty is longer than the maximum allowed by that issuer.
You typically don’t have to register your product to take advantage of this benefit, but we recommend it to make the claim process go smoothly. Also, if you end up filing a claim, you’ll need the original sales receipt, your credit card statement showing the purchase and the original manufacturer’s warranty.
Mobile phone insurance
A few credit cards offer mobile phone insurance. If you use your credit card to pay your monthly mobile phone bill, this benefit offers protection up to a certain amount in case your phone is damaged or stolen.
Special offers
Some credit card issuers offer deals to their cardholders that help them get discounts or cash back when they shop online or in-store.
Exclusive event experiences
With this perk, you can get special access to ticket presales and VIP packages to different events. For example, events include concerts, sporting events, dining experiences and movie screenings.
Concierge service
With some credit cards, you’ll have access to a 24/7 concierge service. You can get help booking travel, making dinner reservations, finding event tickets or even get help finding the right gift for a loved one. If you don’t have the time or energy to do any of these things, you can simply leave it to the professionals.
Travel perks
While travel credit cards are more likely to offer these perks, you may be able to get some of them with a cash back credit card. Also, not all travel cards offer all of these perks, so know what’s most important to you as you’re searching for your next card.
Roadside assistance
Whether you’re far away from home or not, this service can help you if you’re stranded in an emergency. For a flat fee, you typically can get the following benefits:
- Towing
- Tyre changing
- Jump-starting
- Lockout service
- Fuel delivery
- Winching
Rental car insurance
This benefit covers you for collision and damage when you rent a car, including damage and theft, loss-of-use charges and towing expenses. Simply pay for the rental with your credit card and decline the company’s collision damage waiver.
Credit card rental car insurance is typically secondary coverage, meaning that if you have a personal car insurance policy, you have to file a claim with the insurer first. The credit card coverage will kick in if there’s anything leftover that isn’t covered.
But there are some credit cards that offer primary rental car coverage.
Note that this benefit does not cover personal injury or liability. Also, it might not cover certain vehicles or rentals in certain countries.
How can I tell if I should pay for rental car insurance?
If you have the benefit on your card, you might think it’s a no-brainer to decline the coverage. But remember that most credit cards offer secondary insurance, and a claim to your personal auto insurance policy could raise your rates. If you want to avoid that risk, consider paying for the collision damage waiver.
Travel and emergency assistance
If you need help before or during your trip, this service helps you make arrangements for emergency travel, get referrals for medical and legal issues and more. This is especially helpful if you’re in a country where you don’t speak the language.
Travel accident insurance
If an accident occurs while you’re travelling, this benefit may help cover the costs of injuries like accidental death and dismemberment or loss of speech, sight or hearing. With some cards, this perk can be broken up into two types of coverage: common carrier insurance and 24-hour insurance.
The first applies only when you’re entering, riding or exiting as a passenger on a common carrier, such as an aeroplane, train or cruise ship. The second covers you for the entirety of the trip and may offer lower coverage. Keep in mind that some or all of the trip must be paid for with your card to get this benefit. Check with your card issuer to see how to make sure you’re covered.
Lost or delayed baggage insurance
These are typically two separate benefits that kick in depending on what happens with your luggage. For example, if your bags are just delayed for a minimum period, you can get a reimbursement for essentials that you need while you’re waiting for it to arrive. But if your baggage never shows up or gets damaged, you may get reimbursed up to a certain amount to replace the missing items or repair or replace the damaged items.
Trip cancellation or interruption insurance
You can’t control everything, but if your trip gets cancelled or cut short because of illness, severe weather or other eligible reasons, you may get a reimbursement for certain prepaid, nonrefundable travel expenses. Note that this perk may also apply if any of these happen to an immediate family member back home.
Trip delay insurance
Sometimes a flight gets cancelled or a cruise gets delayed. If this happens to you and the delay is long enough — say, 12 hours or it requires an overnight stay — you may get reimbursed for certain unreimbursed expenses, including lodging and meals.
Medical evacuation
If you need emergency care and there isn’t any available locally, this benefit may help you get to the right medical facility or home, if necessary, and cover some or all of the costs of doing so. The benefit also covers some or all of the cost of returning your remains home if you die while travelling.
Elite status
If you have an airline or hotel credit card, you might qualify for elite status with that airline or hotel, or at least get credits toward elite status. Note that some credit cards may require that you spend a certain amount on the card to achieve the offered status.
Elite status often comes with special perks, including complimentary upgrades to first class, hotel room upgrades and more.
Free checked bags
Several airline credit cards offer this perk to help lower the costs of flying. These credit cards typically charge an annual fee, but depending on the normal cost of checking a bag and how often you fly, you could make up for that fee through waived baggage fees alone.
Priority boarding
Getting on the aeroplane sooner means getting more time to settle in and more access to overhead bins. With this benefit, you and people travelling with you can board the plane before you otherwise would.
Airport lounge access
Air travel can be hectic, so being able to escape the crowd and relax a little in an airport lounge is a special experience. Some lounges even offer free food and drinks, which can help you avoid costly airport restaurants.
Some credit cards offer access to more lounges than others. So if this is a must-have perk for you, do your research before applying for a card.
Travel expense credit
Some premium cards charge high annual fees but help make up for it with credits for various travel expenses. For example, some cards offer reimbursement for incidental airline fees like checked bags and in-flight meals. While others feature a flexible travel credit that can be used each card anniversary year for some travel expenses.
How to take advantage of your credit card’s perks
It can be overwhelming to keep track of all of your credit card’s perks, especially if you don’t know which ones it offers.
When you first received the card, you may have also received a benefits guide. If you still have it, check that guide to get a deep dive into your card’s perks. You may also be able to access the benefits guide online — just check your card issuer’s website, and be sure to read the fine print for any benefit you want to use.
What’s next?
There’s no best set of credit card perks for everyone. It’s important that you take stock of how you use your credit card to know what you need the most.
For example, if you don’t travel often, you likely don’t need a card with a lot of travel perks. But if you travel overseas frequently, you may want a card that offers perks like medical evacuation and travel accident insurance.
Also, keep in mind that some of the travel credit cards that offer these perks charge annual fees. So make sure that the value you’re getting from a card’s perks isn’t outweighed by its fees.
Take some time to shop around for credit cards and research what each card offers beyond its rewards program. It often pays to use those fringe perks.