There are many different unique credit card “extras” that you may not even know about! Major credit card companies have adopted and developed unique incentive programs to attract new cardholders and retain their valuable customers. Certain types of cards, called gold or platinum, will automatically provide valuable savings and protection programs for cardholders viewed as low-risk and high-volume charge clients. Cardholders in standard classifications will be offered many of these programs in exchange for the payment of an annual fee.

Credit fraud has become a multi-billion dollar annual risk to banks that issue credit cards in many countries around the world. Third-party providers have established entire businesses to protect the credit profiles of clients that also carry major credit cards. The banks have identified services that will protect cardholder credit and identification information and yield large profits at the same time.

  • Account Insurance – When the cardholder agrees to this type of insurance, the bank will cover the minimum monthly payments on any outstanding balance in the event of a disability. Some programs will actually pay the entire outstanding balance up to a certain amount if the cardholder sustains a permanent disability.
  • Identity Theft Protection – This program secures the personal identification information of the individual cardholder from fraudulent use. Credit patterns are analyzed by computer programs, and when activity outside the defined parameters is noticed by the credit system, all current and future transactions are prevented until contact is made with the cardholder.
  • Overdraft Protection – When the credit card account and the checking account are with the same bank, the cardholder is able to link the credit card to the checking account to guarantee any check that would have been stopped for insufficient funds. Instead of paying overdraft and returned check fees, the credit card account will cover the amount of any check written until funds are deposited in the checking account.
  • Verified by Visa – A password is assigned by the cardholder to prevent anyone else from using the credit card in online transactions.

Many credit card companies offer additional protection for purchased goods, but many cardholders are unaware that their account offers these extra benefits. Even veteran credit card users let alone those with first time credit cards can be fuzzy on the specific credit card benefits that their card provides. Standard credit card accounts offer protection against damage and loss of most items purchased with the card. Gold and platinum cards will offer replacement insurance for many goods purchased with the credit card.

  • Price Protection – Whenever the cardholder finds an identical item to the one purchased within the last thirty days and the price is lower, the credit card company will refund the difference in price. Complete claim forms must be filed online promptly to claim the sale price.
  • Extended Warranties – Manufacturers offer a basic warranty on most durable goods, but the customer is usually offered the opportunity to purchase a longer warranty for additional coverage. Many banks have started to issue extended warranties to cover major purchases as an incentive for cardholders to use their cards instead of opening in-store credit accounts.
  • Purchase Security – When items purchased with the credit card are lost through fire, theft or other misfortune, the owner will be reimbursed through monetary compensation or replacement of the item. Major appliances and expensive electronics might be covered by virtue of having paid for the items with the credit card that offers this protection.
  • Home Improvement Programs – These programs are designed to aid the cardholder discounts, referrals and services during efforts to repair, renovate, or redecorate the home. The benefit of finding reputable craftsmen can be very beneficial to the homeowner who just moved into the area.

Travel programs have existed for almost as long as the automobile has been a part of American life. Major banks have noticed that people are willing to pay annual fees for services that provide a sense of security while traveling. As an incentive to charge travel-related expenses, many of the credit card companies will provide the following extra benefits to cardholders.

  • Road-side Assistance – Whether an additional fee is required for this program or not, there is an added security to knowing a tow truck fee is covered if needed. Each road-side assistance program has different features and the credit card documentation will explain what benefits are included in the program.
  • Auto-Repair Discounts – Cardholders that have an older vehicle can benefit from this unique program that provides noticeable discounts and reputable automobile repair shops.
  • Travel Services – Vacation packages, airfare, and hotel rooms are offered to cardholders of certain credit cards at deep discounts as an incentive to use the credit card for travel expenses. Gold and platinum cards have the added benefit of access to the travel services division of the credit card company. Travel arrangements can be made through these departments at no charge to the cardholder.
  • Rental Car Collision Insurance – One of the most popular benefits for most credit card account holders is the automatic insurance that will cover rental cars that are driven by the card holder.
  • Common Carrier Accident Insurance – In the event of an airplane crash, the credit card company will pay one million dollars to the beneficiaries in the event that the cardholder dies in the crash. The airline ticket had to have been charged to the credit card account.

Credit card accounts are enhanced on an annual basis by major credit card companies. Updated account documentation is sent to each cardholder. In the disclosure statements, the bank will describe enhancements to the specific credit account held by the cardholder. Limits are specifically documented in this literature, and the statements can be changed at any time by the bank. Prior to choosing a credit card, determine which bank offers the best combination of extra benefits to meet your needs. Even if some of these programs require an annual fee to be paid, the cardholder may realize substantial value from the right combination of extra benefits. Do you have a unique story to tell about credit cards or something related to small business/personal finance? If so, contact us to submit your own guest post ideas and you could be featured on our blog!

Similar Posts:

Share