Credit cards are often viewed as simple tools for spending and earning rewards. Most people are familiar with common benefits like cashback, travel points, and fraud protection. However, many credit cards come loaded with hidden perks that go unnoticed and unused—costing cardholders opportunities to save hundreds, even thousands, of dollars every year.
In this article, we’ll show you how to use the hidden benefits of credit cards that most people don’t know about, how to use them, and real-world scenarios in which these benefits could save you money, stress, or both.
1. Purchase Security How it works:
Purchase protection protects newly purchased items from theft, damage, or loss for a predetermined amount of time (typically 90 to 120 days) following purchase. Example:
Imagine purchasing a new phone, only to have it stolen two months later. If you bought something with purchase protection on your credit card, you could file a claim and get a refund or a replacement. How to use it:
Keep your receipts.
Report the incident promptly (within 30-60 days).
File a claim through your card issuer’s website.
Common cards with this benefit:
Chase Sapphire Preferred® Card
American Express Gold Card
2. Extended Warranty Protection
What it is:
Many credit cards automatically extend the manufacturer’s warranty by an additional year (or more) when you use your card to make the purchase.
Example:
You buy a laptop with a one-year warranty. If it breaks after 13 months, your card’s extended warranty might still cover repairs or replacement.
How to use it:
Save both your original purchase receipt and warranty information.
If a product fails, contact your card issuer for assistance.
Tip:
Some cards require you to register the purchase to activate coverage.
3. Price Protection
How it works: If you purchase an item and its price drops within a certain timeframe (typically 60-90 days), some cards refund you the difference.
Example:
You buy a new TV for $1,000, and two weeks later it’s on sale for $800. Price protection could refund you the $200 difference.
Note:
This perk has become rarer, but some premium cards still offer it.
4. Insurance for Trip Cancellation and Interruption What it is:
When you book travel with your card, you may be eligible for a full or partial refund if your trip is canceled or interrupted due to covered reasons (e.g., illness, severe weather).
Example:
You book a vacation costing $3,000. Two days before departure, you fall ill and have to cancel. Trip cancellation insurance could reimburse your expenses.
Typical reasons that are covered are: Personal illness
Extreme weather Emergencies in the family
5. Lost Luggage Reimbursement
How it works: If an airline loses or damages your luggage, your credit card may cover the loss up to a certain dollar amount.
Example:
Airlines often cap compensation at $1,500 to $3,500, but your card could add extra protection—sometimes up to another $3,000.
6. Insurance for the rental car (Collision Damage Waiver) What it is:
Your credit card may provide primary or secondary coverage for damages if you pay for a rental car without the rental company’s insurance. Primary vs. Secondary Coverage:
Primary: Covers damages without involving your personal auto insurance.
Secondary: Only covers costs not covered by your personal policy.
Common cards offering primary rental coverage:
Chase Sapphire Preferred®
Chase Sapphire Reserve®
7. Roadside Assistance
What it is:
Towing, fuel delivery, and locksmith services are just a few of the roadside assistance options offered by certain credit cards. Example:
You’re stranded on the highway with a flat tire. Your card’s roadside assistance may arrange and cover it for free or for a small fee, saving you $150 from a towing company. 8. Cell Phone Protection
What it is:
If you pay your monthly phone bill with a qualifying credit card, you may get insurance against theft or damage, saving you from buying separate protection plans.
Typical coverage:
$600–$1,000 per claim
$25–$100 deductible
Cards offering this benefit:
Wells Fargo Active Cash® Card
Chase Ink Business Preferred® Credit Card
9. Travel and Emergency Assistance
What it is:
You can get help finding medical or legal services while traveling abroad, 24/7.
Example:
If you lose your passport overseas or need a doctor urgently, your card’s concierge can help you navigate these emergencies.
Important:
The service itself is free, but you still pay for any third-party costs (e.g., hospital bills).
10. Concierge Services
What it is:
High-end cards often offer concierge services to help you book reservations, plan travel, or even find rare gifts.
Example:
You need last-minute concert tickets or reservations at a fully booked restaurant. Your card concierge might work their magic.
Cards with notable concierge services:
American Express Platinum Card®
Citi Prestige® Card
11. Free Credit Score Monitoring
What it is:
A lot of issuers grant cardholders free access to monitoring tools and credit scores. Example:
Discover, Capital One, and Chase offer real-time updates that help you track your credit health without paying third-party companies.
12. Airport Lounge Access
What it is:
Certain cards grant access to luxurious airport lounges worldwide, offering free food, drinks, showers, and quiet working spaces.
Example:
A $40 airport meal? Or relaxing in a lounge with free meals and drinks while you wait for your flight—on your credit card’s dime.
Popular lounge-accessible cards: American Express Platinum Card®
Sapphire Reserve® from Chase Capital One Venture X Rewards Credit Card
13. TSA PreCheck or Global Entry Reimbursement
What it is:
Some premium cards will reimburse you for TSA PreCheck or Global Entry fees (up to $100) every 4-5 years.
Example:
Skip long airport security lines without paying extra.
14. Dining Rewards and Exclusive Reservations
What it is:
Certain cards offer access to priority reservations at top restaurants and extra rewards for dining purchases.
Example:
Chase Sapphire Reserve® cardholders get access to exclusive Resy reservations.
15. Complimentary Hotel Nights and Upgrades
How it works: Cards partnered with hotel brands often offer free nights, complimentary upgrades, or elite status benefits.
Example:
Hilton Honors American Express Surpass® Card grants Gold status—giving you free breakfast and room upgrades.
16. VIP Experiences and Event Access What it is:
Many issuers offer pre-sale tickets, VIP seating, or cardholder-exclusive events.
Example:
Citi Entertainment® gives access to concert pre-sales, while Amex Experiences offers VIP packages for shows, sports, and festivals.
17. Return Protection
What it is:
If you made the purchase with the card, some cards will refund the purchase price themselves (up to a certain limit) if the retailer will not accept a return. Typical coverage:
90 days after purchase
$250–$500 per item
18. No Foreign Transaction Fees
What it is:
Some cards eliminate the typical 1%-3% surcharge on overseas purchases—making them ideal for international travel.
Example:
A $3,000 European trip? You could save $90 or more simply by using a no-foreign-fee card.
19. Fraud Protection Beyond the Basics
What it is:
While all cards offer $0 fraud liability today, some go further—monitoring unusual account activity and offering enhanced dispute processes for purchases you didn’t authorize.
20. Financial Hardship Assistance
How it works: Many issuers quietly offer hardship programs—lowering your interest rate, deferring payments, or waiving fees if you experience job loss, medical emergencies, or other crises.
Tip:
Always call your card issuer if you’re struggling; you might get flexible, discreet help.
Why People Don’t Use These Perks
Lack of Awareness:
Many cardholders never read the fine print in their cardholder agreements.
Assumption of Complexity:
Users assume that claiming benefits is too difficult. In reality, many claims are handled through easy online portals today.
Fear of Denial:
Some think their claim won’t be approved—but with proper documentation, approvals are much more common than people believe.
How to Start Using Your Hidden Credit Card Perks
Download Your Card’s Benefits Guide:
Every card has a downloadable “Guide to Benefits” detailing all protections.
Register Purchases of High Value: Keep receipts and serial numbers safe in a digital folder when making large purchases. Set Calendar Reminders:
Mark 90-day and 120-day windows for returns, price drops, and warranty claims.
Call Your Card’s Customer Service:
Agents can help you initiate claims and explain less obvious benefits.
Pick the Right Card for Each Purchase:
When renting a car, use a credit card with insurance for the vehicle. Use a card with extended warranty when buying electronics.
Conclusion
The true value of a credit card often lies beyond points and miles. With perks like purchase protection, extended warranties, trip insurance, free returns, and even free airport lounge access, your credit card can be a powerful financial safety net—if you know how to use it.
Don’t leave money or valuable services on the table.
Review your benefits. Keep track of major purchases. Use the right card for the right occasion.
You might be surprised just how much value you’re missing out on.