Credit Cards General
What kinds of benefits does a credit card have?
Many credit card companies offer special features, rewards or discounts to attract new customers. Rewards offered include rebates, frequent flyer miles, phone call minutes, and others. Some of the other kinds of benefits that credit card companies offer include:
Purchase Protection
Insurance for purchases up to a set value (if you buy something on your card and want your money back, you might be able to claim the amount from the credit card company)
Warranty coverage
Coverage for warranties (free or discounted repair or replacement) for purchases, and in some cases, extended warranties
Car rental insurance
Damage and collision-waver insurance for your car rental that can be used to supplement, or in some cases used instead of, your personal car insurance coverage
Travel accident insurance or other travel-related discounts
Insurance for accidents while traveling, trip cancellation, roadside assistance, lost or damaged luggage and more
Payment Protection
Insurance to cover payments on your credit card balance (if you become unemployed or disabled, or die)
Credit card registration/insurance
Registration of credit cards or insurance to cover the first $50 of charges if your card is lost or stolen
Before you sign up for a card with any of these benefits, think carefully about whether it will be useful for you. Don’t sign up for anything you don’t want or don’t need. It could cost you in the end.
See also:
What is the difference between a Platinum, Gold or standard credit card?
How many credit cards should I have?
How do I compare credit card offers?
Last update: 2006-09-25 14:14
Author: BKO
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