Credit cards typically offer great perks and benefits that can be useful when planning trips or safeguarding purchases. However, it seems that users often forget they have these features or don’t bother to use them.
According to the J.D. Power 2019 Canada Credit Card Satisfaction Study, travel-related benefits are among the perks with the most influence on customer satisfaction. Yet, the study suggests cardholders don’t frequently use these benefits. Credit card usage comes in around 2% for hotel benefits, 9% for shopping benefits, and 6% for other travel-related benefits.
Overlooking common credit card perks can end up costing you money. Understanding the features offered by your card, however, can put more money back in your pocket.
Travel rewards cards often have the most extensive insurance packages on the credit card market. However, there are many credit cards (with and without annual fees) that offer varying levels of insurance coverage.
For example, the BMO® AIR MILES®† World Elite®* Mastercard®* features a wide range of insurance options. It also has a $120 annual fee.
Insurance coverage includes:
A card like the President’s Choice Financial® World Elite Mastercard® has no annual fee, but a smaller selection of coverage.
Insurance coverage includes:
Cardholders usually have to charge a portion of their flights or vacation to the card to use these perks. Each card will vary, but you should find this information in your credit card welcome package or you can call the provider.
The insurance coverage can give you peace of mind on your next trip and can save you a bundle if you need to file a claim. Medical aid can cost a fortune abroad and all those other travel expenses don’t come cheap. Not only that, but travel insurance is a requirement to visit some countries like Cuba, for example. Having the coverage on your credit card can ensure you have the insurance you need.
It is important to note that credit card insurance may vary for cardholders age 65 and over. Sometimes, insurance coverage is available but often for a fewer number of days or with more conditions. Speak to your provider for the full details of the policy.
Two of the most common credit card perks are extended warranty and purchase protection, sometimes referred to as extended protection, purchase security, or purchase assurance.
Each credit card company will have a different set of guidelines. Sometimes companies require items to be registered, while others do not. Additionally, some coverages include items bought as gifts.
In general, extended warranty and purchase protection usually cover your purchases for a specific duration and up to a set claim value per year.
The BMO® CashBack® World Elite®* Mastercard®* features purchase protection plus and extended warranty plus. The lifetime maximum claim limit is $60,000 on this card, twice the typical coverage.
Whether it is free room upgrades, complimentary breakfast, or money off tickets, credit cards have a surprising amount of complimentary member benefits and partner perks.
Other discounts may include deals and offers at airports and spas or exclusive access to dining or hotel collections. For example, some credit cards feature Mastercard Airport Experiences provided by LoungeKey, providing cardholders with dining, shopping and spa offers. Each discount can add up to more savings in your wallet.
Related read: Best Premium Perks Credit Card in Canada for 2020
Start to familiarize yourself with the excellent benefits and perks on your credit card. The features may be easier to use than you expect and can save you money.
If your credit card is not rewarding you for your spending habits, it may be time to browse the RATESDOTCA credit card marketplace to compare the best credit cards in Canada. Review the perks and extras from the top credit card providers and find your fit.
Rates, product information, and rewards estimates are subject to change at any time and do not constitute financial advice. Information in this article is accurate as of the date this posting, September 1, 2020.