Choosing a new credit card can be overwhelming, especially if there’s a large annual fee involved, but for many people, it’s well worth it. If you handle your credit limit responsibly, a card with rewards can earn you free flights, hotel stays, Uber rides, cash back, and gift certificates to your favorite stores.
However, the most underrated benefit is the peace of mind that a credit card can provide. Most people don’t even know that their cards offer certain protections that could save them the hassle of arguing with questionable retailers and save them thousands of dollars.
That’s what Raj Punjabi, host of HuffPost’s “Am I Doing Wrong?” Kelly (best known as the “key point expert”) told us. Podcast – When he comes to our studio to talk about how to get the best credit card benefits.
If you travel frequently, read the fine print of your credit card contract. Once you figure out what types of protection you have, they can be very helpful in dire situations. For example, flight delays and cancellations are much less stressful when you’re not stranded at the airport.
“[Some] Credit cards have what’s called “flight cancellation and delay protection.” So if you deposit your flight costs into a Chase Sapphire Reserve, you can get $500 per person if your flight is delayed by more than 6 hours, or 12 hours on some cards (depending on the situation) or $1,000 for use at the hotel. “So when my flight is delayed 12 hours, I’m not going to sit [at the airport]. I’m going to a nearby hotel and have a nice lunch paid for by my credit card company…or I’m going to stay at a day hotel.
He told us that many credit cards offer this protection, and taking advantage of it can make paying the high annual fee totally worth it. The same goes for rental car insurance with certain credit cards, such as the American Express Platinum Card. provide their users with.
This insurance is crucial, but what’s not commonly known is that you need to decline the insurance offered to you by the rental company for your credit card insurance to be effective.[The car rental agency] Will sell you very crappy insurance that will actually invalidate your credit card [car insurance],” Kelly said. Don’t be fooled.
It’s important to stay informed about all the ways your credit card can provide support in unforeseen circumstances, especially when you don’t get what you paid for.
“The value of a credit card company is [the ability to] Dispute a payment,” Kelly explains. So if for some reason you don’t get what you’re charged, the credit card’s customer service staff will usually refund the charge and fight the violator on your behalf.
Another type of insurance that many cardholders don’t know about is purchase protection.
“If you lost your sunglasses on a booze cruise, most people would be like, ‘Damn, that’s like $150. Never seen again, but most credit cards – within 90 days – on almost any item you buy, even if you damage it, or it’s stolen, they’ll refund it for free,” Kelly revealed.
He stresses that purchasing protection is so valuable that it’s sometimes worth it for companies to add a 2% or 3% fee to your bill.
“If I rent a villa abroad, they will say you can use wire transfer [the money] Get a villa or pay a 2% handling fee [to use my credit card]I will always pay 2% because… I am protected [my credit card],” Kelly said. “If you send money to anyone and they screw you up, you’re screwed. You’re screwed! The bank will say, ‘Told you so.’ “But if you put anything out there – I mean, even camping for your kid and something goes wrong and your kid can’t go, your credit card company can get involved [and help] a lot of.
Of course, we want to avoid paying fees whenever possible, Kelly points out, but often the peace of mind you get is worth spending a little more, especially since some credit cards offer protection for up to $50,000 of purchases per year.
“I can’t stress this enough: I need everyone to know what the purchase protection rules are,” Kelly said, adding that some cards also offer extended warranties even after the manufacturer’s one-year warranty expires. Gadgets and other items can also be covered.
Ultimately, all of these potential protections should be considered when choosing a new card or making better use of an existing card.
We also talked to points experts about the ideal number of credit cards you should have in your wallet, how to maximize points on hotel stays and which cards will make you feel like royalty at the airport.
Listen to the full episode here or wherever you find your podcasts.
Be sure to subscribe to Have I Done Wrong? on any of your favorite podcast platforms so you never miss an episode, including our look at the ins and outs of tipping, how to apologize or pay off credit card debt, and what to look for online Love or Overcome Anxiety, Tips for Online Shopping, Taking Care of Teeth and Stool Like a Pro, Tips for Booking and Staying at a Hotel, How to Deal with Angry People, Celebrity Chef Jett Tira’s Cooking Secrets, Shocking Laundry Secrets , tips and tricks for cleaning dishes, getting your best workout, and more.
For more information about Brian Kelly, visit The Points Guy.
Need help fixing something you’re doing wrong? Email us AmIDoingItWrong@HuffPost.comwe may look into this topic in the next episode.
