Your credit card is good for more than just buying gas and groceries. Credit cards can offer a variety of benefits that aren’t available from debit cards, including certain protections. Here’s a short list and a description of some of these benefits*:
Benefit: Return protection
● How it works: You get a refund for items you don’t want, but can’t return.
● When you need it: A manufacturer refuses to take back something you purchased.
Benefit: Extended warranty coverage
● How it works: Add extra time to warranty policies of products purchased with your card, and at no extra cost.
● When you need it: Your smart vacuum stops working one day after the warranty expires.
Benefit: Identity theft protection
● How it works: You generally won’t be held responsible for charges you didn’t make.
● When you need it: A thief steals your credit card number and goes on a spending spree.
Benefit: Cash-back rewards
● How it works: You earn cash every time you use your card.
● When you need it: When don’t you need cash back?
Benefit: Points and miles
● How it works: You earn points toward airfare, hotel stays and retail purchases when you spend.
● When you need it: You’re planning a big vacation or just want to get a little bonus for your spending habits.
Benefit: Travel assistance
● How it works: You’ll get help with trip planning, or coordinating financial, legal and medical needs while you’re abroad.
● When you need it: In the event of lost luggage, misplaced passports and medical emergencies overseas.
Benefit: Trip insurance
● How it works: You’ll receive reimbursement for trips that are canceled or interrupted, in certain circumstances.
● When you need it: Severe weather or family illness foil your vacation plans.
Benefit: Car rental insurance
● How it works: You’ll automatically be covered if you pay for your rental car using your credit card.
● When you need it: Your auto insurance doesn’t apply, or the rental car company’s policies are pricey.
*Note: Not all credit cards provide every benefit listed, and some protections may come with additional fees.
Emily Long is a freelance writer and editor based in Salt Lake City. Her work has appeared on NBC News, Lifehacker and Wirecutter.
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