Credit card issuers offer more benefits than just flashy sign-up bonuses and cash back rates that could save you money, including seven lesser known perks that could save you cash. Here are seven such considerations.
TPG praises Citi Premier as “an under-the-radar gem with an impressive array of bonus categories.” Earning three points per dollar on airfare, hotel stays, gas stations and supermarket purchases makes this card an outstanding value at midrange annual fees.
1. Sign-up bonuses
Some credit cards offer lucrative rewards for ongoing spending, while some issuers provide exceptionally enticing sign-up bonuses to draw new cardholders to them. These offers typically consist of cash back, points or miles – some can even amount to thousands in value!
Sign-up bonuses vary in their value depending on how they’re redeemed. Cardholders can redeem their reward earnings for statement credits, travel or gift cards; or transfer them to other loyalty programs for extra value.
Credit card sign-up bonuses can be an especially helpful tool in financing large travel goals like financing an incredible vacation experience. But in order to secure this bonus, careful planning and budgeting must occur first; Bankrate’s Travel Toolkit offers strategies for optimizing travel rewards while managing sign-up bonuses effectively.
When selecting a credit card sign-up bonus, it’s essential to take several factors into account when analyzing it, including annual fee costs and planned spending in the first few months. Furthermore, certain card issuers limit how often you can qualify for certain sign-up bonuses; Chase’s 5/24 rule prevents you from earning its welcome offer again within 24 months if you have opened five or more cards from them in that timeframe.
2. Shopping discounts
Credit card issuers offer more benefits than just points and travel miles; store-specific rewards to extended warranty protection are all worth investigating as potential perks that fly under the radar but remain useful. Many cards offer these hidden bonuses without charging anything extra; you simply reap their benefits by using certain cards for purchases. Here are seven under-the-radar benefits you should look out for when considering new credit cards or checking up on ones already in your wallet.
3. Cell phone protection
As cell phone prices continue to skyrocket, credit card issuers are beginning to offer cellphone protection through credit cards such as the Uber Visa Card by Barclays and Wells Fargo Platinum Visa Cards. Both offer up to $600 per claim and $1,200 annually in protection should your phone become stolen or damaged; qualifying requires paying your cell phone bill with this credit card each month in order to qualify.
4. Late payment fee waivers
Life may get in the way of your credit card payments, and you could find yourself incurring late fees. Luckily, many issuers offer one-time late fee waivers so that you can catch up without suffering lasting repercussions like impact to your credit score.
By law, late fees cannot exceed $29. However, multiple late payments could cost as much as $40 each time. To prevent being hit with high late fees and keep on time with payments every month, familiarizing yourself with your credit card terms can help ensure timely payments of your bill.
Check to see if your credit card issuer offers tiered late fees; some cards may impose charges of $15 for balances under $1,000, $20 between 1,000 and $1,500 and $40 when their total goes beyond this threshold.
According to research conducted by the Consumer Financial Protection Bureau, late fees on credit cards tend to fall heavily upon economically vulnerable consumers. To reduce costs further and help you better budget for credit card fees and interest payments, look for credit cards without late fees or low rates that fit within your budget. Experian’s CreditMatch(tm) offers can match you up with offers tailored specifically towards your credit profile.
5. Travel insurance
For frequent travelers, a credit card with travel benefits such as free travel insurance or airport lounge access may make the investment worthwhile. As these advantages may not always be advertised in their terms and conditions, it’s wise to carefully scrutinize each card before applying.
Many travel rewards cards provide built-in travel insurance policies to cover lost luggage, trip cancellation or interruption and nonrefundable expenses such as tours and activities that have already been purchased. Such policies offer peace of mind to travellers whose plans may change unexpectedly or be altered unexpectedly during travel.
Some credit cards allow customers to purchase travel insurance separately through them, offering quick and easy purchasing as well as potentially lower cost than purchasing it through travel suppliers or private insurers. Pros: It may save time and money.
6. Airline lounge access
No matter if traveling for business or pleasure, an airport lounge experience can turn any layover into a relaxing getaway. While access to these luxury facilities may not always be free of charge, premium travel cards frequently include lounge benefits that help cover any annual membership or day pass costs.
Credit card lounge access is usually granted through partnerships with various lounge networks, for example American Express Platinum Card members have access to Centurion Lounges and Delta Sky Clubs when flying with Delta in addition to Priority Pass Select and Airspace Lounges. Other premium cards with lounge benefits are Chase Sapphire Reserve and Capital One Venture Card.
As part of your evaluation of lounge benefits and card selection process, make sure that partnerships with various lounge networks coincide with your airline and travel destinations. In addition, take note of any annual fees or additional perks such as free checked bags or priority boarding offered by this card to determine if it offers value to meet your needs.
7. Convenience fee waivers
Credit card issuers understand the power of perks can make their products stand out from competitors, with customers finding compelling sign-up bonuses or travel-related perks such as airport lounge access as major draws for some cards with an annual fee.
Other cardholders may find additional benefits from cards can help offset an annual fee, such as travel insurance or cell phone protection plans or waived airline bag check-in fees – some cards offer extra perks that are hard to come by elsewhere.
Some cards go beyond simply waiving credit card fees by offering special convenience fees that only apply when purchases made by cardholders and when cash payment isn’t possible. These perks differ from checkout fees or surcharges which apply across the board and must meet merchant agreement rules set by Visa, Mastercard (Discover and American Express).
However, although some cardholders have reported changes in annual fees, federal law mandates that card issuers provide advance notice prior to any alteration in fees. Because many perks come with credit cards which help offset annual fees, cardholders should consider carefully whether these benefits outweigh their cost when choosing one.