While rewards credit cards are known for offering cash back and travel rewards, many also feature an array of secret benefits that can be especially rewarding.
These special perks run the gamut from insurance to guarantees for certain purchases and can vary from card to card.
If you're in the market for a rewards credit card, look beyond the temporary benefits to see which perks you might score just for being a cardholder:
Trip Cancellation / Interruption Insurance
Some credit card offer trip cancellation / interruption insurance that will reimburse you if your trip is canceled or delayed for reasons beyond your control.
With the Chase Sapphire Preferred card, for example, you can be reimbursed up to $10,000 per trip for your pre-paid, non-refundable travel expenses if your trip is cut short by sickness, severe weather or other covered situations.
Primary Auto Rental Coverage
Many of the top travel and rewards cards offer primary auto rental coverage as a cardholder perk. With this coverage, you can turn down the insurance offered through the rental agency and charge the entire cost of your rental to your card.
This coverage can chip in to repair your rental vehicle if collision or theft occurs. Make sure to know how your coverage works, along with any caveats, before you rely on it as your primary coverage, however.
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Extended Warranties
Automatic extended warranties promise to add years to the original warranties that come with some product purchases. With Discover, for example, extended warranties apply to products with original warranties of less than three years.
With an extended warranty, you can get certain big ticket items repaired or replaced if they break down outside the traditional warranty period, though exclusions do apply.
Guaranteed Returns
Credit cards that offer guaranteed returns promise to extend the length of time you can return any item purchased with your card.
With Discover cards, for example, you get an extra 90 days of guaranteed returns up to $500 per item and $2,500 annually. For a purchase to qualify, it must have been made with your Discover card. The original store should also be unwilling to accept your return within 90 days of purchase.
Special Status with Hotels and Car Rental Companies
Some rewards credit cards offer special status with outside hotel and car rental loyalty programs. The Platinum Card from American Express, for example, offers automatic Hilton Honors Gold status and their own Fine Hotels and Resorts collection.
The popular Chase Sapphire Reserve, on the other hand, offers special car rental privileges with Avis, Silvercar, and National Car Rental, along with special benefits via its own Luxury Hotel & Resort Collection.
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Baggage Delay Insurance
If your baggage is lost or delayed by an airline, this type of coverage will reimburse you for essential purchases like toiletry items and clothing. However, the amount of coverage varies depending on your card. With the Chase Sapphire Reserve, for example, coverage begins once your baggage has been delayed for six hours and can be worth up to $100 per day for five days.
These are just some of the amazing benefits you can get from a rewards credit card. There are plenty of others, although the range of perks depends on the card you sign up for.
Before you choose a rewards credit card, make sure to look at all the offered benefits to see which ones fit your travel style and goals. While earning cash back and travel rewards can be a lucrative endeavor, these other special advantages can add up quickly if you use them.
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