If optimizing your spending and saving money on travel are on your agenda, a travel credit card can help you do both. Not only do travel cards let you earn points that are redeemable for airfare and hotel stays, but some offer free perks that can actually save you money in the long run.
8 Perks Your Travel Credit Card Offers that Can Help You Save Money
If you’ve never had a travel credit card before, you may not be aware of the additional benefits many of these cards offer. But if you become accustomed to using them, you could easily save hundreds of dollars per year – and that’s on top of any rewards you earn.
Here are a few of the perks I’m talking about, plus examples of how they work in real life. And remember, all of these perks are free for the taking – that is, if you sign up for the right travel credit card and keep your account in good standing.
Trip Cancellation/Interruption Insurance
While the Chase Sapphire Preferred® Card is considered a top travel credit card for many reasons, not all of those reasons have to do with rewards. In addition to doling out points you can redeem for travel, this card offers some of the best trip cancellation/interruption insurance in the business. How do I know? Because I actually had to use this coverage once!
When my husband and I got stranded in Montego Bay for two days in 2014, I was relieved to find I had paid for our flights with my Chase Sapphire Preferred® Card. Since I knew I had trip cancellation/interruption coverage, I was fairly certain I would be reimbursed for any additional money we needed to spend. Fortunately, I was right. I quickly filed a claim upon returning home from our trip and was reimbursed for the additional $590 I spent within a few weeks.
The bottom line: If you travel often and want protection from unknown expenses that result from travel delays or unruly weather, a card with trip cancellation insurance is a no-brainer. Best of all, this coverage is free for cardholders.
Extended Warranties
Travel credit cards that offer extended warranties will often replace your product if it breaks down or stops working after the traditional one-year manufacturer’s warranty expires. Discover credit cards, like the Discover it® Miles, are known for the exceptional extended warranty coverage they offer.
Don’t believe me? This message comes straight from Discover’s website:
“No need to worry about expired warranties. We will extend the terms of an existing eligible warranty for up to 1 additional year on warranties of 36 months or less.”
To qualify for this coverage, you generally need to use your card for the purchase – and keep your receipt!
Zero Fraud Liability
Where debit cards can leave you on the hook for fraudulent charges up to $500 or more if not reported within 60 calendar days, most travel credit cards offer zero fraud liability, meaning you won’t be on the hook for any charge you didn’t make.
If you want to protect yourself from fraud, this is huge. When you find a fraudulent charge on your account, all you have to do is call your card issuer and report it. They’ll take it from there. Most of the time, the only hassle on your end is waiting for your new card to arrive in the mail.
Primary Auto Rental Coverage
While some travel credit cards offer secondary auto rental coverage known as CDW, or Collision Damage Waiver, some cards offer primary auto rental coverage instead.
The short list includes the popular Chase Sapphire Preferred® Card. Just pay for your rental car with your card and enjoy primary rental car coverage instead of using your own.
I’ve used this coverage for car rentals all over the country, and with huge success. If you know how expensive the “extra” insurance offered by car rental agencies can be, it’s easy to see what a huge benefit this really is.
Guaranteed Returns
Some credit cards, including the Ink Plus® Business credit card, offer guaranteed returns on any items you buy with your card. Says Chase on their website: “You can be reimbursed for eligible items that the store won’t take back within 90 days of purchase, up to $500 per item, $1,000 per year.”
This could be applicable to all kinds of purchases, but it’s most commonly used for items purchased with a short return policy. Best Buy, for example, has a standard return period of just 15 days – even with a receipt! If you paid for an item at Best Buy and wanted to return it within 90 days, any card you paid with that provides this coverage would presumably intercede with your return.
Emergency Travel Assistance
Some credit cards, including almost all American Express credit cards, offer emergency travel assistance that will come to your aid in a jam. Their services depend a lot on your individual needs but can include helping you locate lost baggage, assisting with last minute or emergency travel changes or plans, or providing you with support in the event or a natural disaster or social unrest.
When you’re traveling abroad, having someone to turn to for help can be helpful in the worst of times. Best of all, this benefit is offered free.
Access to VIP Events
Some travel-specific credit cards offer access to special VIP events and travel opportunities. By signing up for the Citi Prestige® card, for example, you’ll gain access to® Citi Private Pass – an exclusive club that allows members to get first dibs on travel experiences, concert tickets, and more.
Not only can you use this ticket to buy preferred tickets, but you can often get tickets before they are released to the public. This can help you save both money and time, since you won’t have to fight the clock or battle over tickets that are likely to sell out.
Airport Lounge Access
In addition to VIP access, some cards let you be a VIP in the airport as well. The Citi Prestige® card is once again at the top of its game in this respect. With this card, you’ll get complimentary access to American Airlines Admirals Club® lounges, plus hundreds of VIP lounges through Priority Pass™ Select. If you fly or use lounge access often, this perk can easily be worth hundreds of dollars each year on its own.
The Bottom Line
If you want to earn points or miles that can drastically cut down on your travel costs, you might as well go the extra mile and find a card that offers additional perks you will use. By finding the right card for your needs, you could easily save hundreds of dollars per year on trips and services you planned to splurge for anyway.
Before you make a decision, check out our introductory guide on credit card rewards and our post on top travel credit cards in 2016:
Source Good Financial Cents http://ift.tt/1LvonRl
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