Hidden Perks of Your Credit Card You Might Not Know About
Credit cards are a common financial tool for many Kiwis, but beyond the basic function of convenient payments, many cardholders are unaware of the hidden perks their cards offer. Understanding and utilising these benefits can significantly enhance the value you get from your credit card. Let’s explore some of the lesser-known advantages that might be sitting in your wallet right now.
Travel Insurance
Many premium credit cards in New Zealand come with complimentary travel insurance. This perk can save you hundreds of dollars on standalone travel insurance policies. For instance, the American Express Airpoints Platinum card offers comprehensive travel insurance when you pay for your travel expenses using the card. This coverage often includes trip cancellation, lost luggage, and medical emergencies abroad.
However, it’s crucial to read the fine print. Some cards may require you to pay for a certain percentage of your travel costs with the card to activate the insurance. Others might have limitations on trip duration or destination. Always check the policy details before relying solely on your credit card’s travel insurance.
Purchase Protection
Purchase protection is a valuable but often overlooked benefit. This feature typically covers items you buy with your credit card against theft, loss, or accidental damage for a specified period after purchase. For example, some BNZ Advantage credit cards offer 90 days of purchase protection on eligible items.
This perk can be particularly useful for big-ticket items or electronics. If your new smartphone takes an unexpected swim or your laptop decides to call it quits shortly after purchase, this protection could save you a significant amount of money.
Extended Warranty
Similar to purchase protection, many credit cards offer extended warranty coverage. This benefit usually adds an additional year to the manufacturer’s warranty on items purchased with the card. The ASB Visa Rewards card, for instance, provides an extended warranty on eligible purchases.
This perk can be especially valuable for appliances and electronics, potentially saving you the cost of extended warranty plans offered by retailers.
Concierge Services
Higher-tier credit cards often come with complimentary concierge services. Think of it as having a personal assistant at your disposal. These services can help with various tasks such as making restaurant reservations, booking travel arrangements, or even finding hard-to-get event tickets.
The Westpac Airpoints World Mastercard, for example, offers a 24/7 concierge service. While it might seem like a luxury, this service can be incredibly useful when you’re short on time or need assistance in unfamiliar locations.
Airport Lounge Access
For frequent travellers, airport lounge access can be a game-changer. Many premium credit cards offer complimentary access to airport lounges worldwide. The American Express Airpoints Platinum card, for instance, provides two entries per year to the American Express Lounge at Auckland International Airport.
Airport lounges offer a quiet space to work or relax, complimentary food and beverages, and often shower facilities – all of which can make long layovers or delays much more bearable.
Rental Car Insurance
When renting a car, the cost of insurance can add up quickly. However, many credit cards offer rental car insurance as a complimentary benefit when you use the card to pay for the rental. This coverage can potentially save you a significant amount on your car rental expenses.
For example, the ANZ Airpoints Visa Platinum card provides rental vehicle excess cover. Always check the terms and conditions, as coverage can vary between cards and may have limitations on rental duration or vehicle types.
Price Protection
While not as common, some credit cards offer price protection. This benefit refunds the difference if you find a lower price on an item you’ve recently purchased with your card. The timeframe and conditions for this benefit can vary, so it’s worth checking if your card offers this perk.
Cashback and Rewards
While not exactly hidden, many cardholders don’t fully utilise their card’s cashback or rewards programs. The ANZ CashBack Visa, for instance, offers $1 cashback for every $150 spent on eligible purchases. Over a year, this can add up to a significant amount.
Similarly, rewards programs like Air New Zealand Airpoints can provide substantial value if used strategically. The key is to understand your card’s earn rate and redemption options to maximise the benefits.
How to Make the Most of Your Credit Card Perks
- Read Your Card’s Benefits Guide: Many of these perks are detailed in your card’s benefits guide. Take the time to read through it thoroughly.
- Use Your Card Strategically: To maximise rewards or cashback, use your card for everyday purchases, but always pay the balance in full to avoid interest charges.
- Keep Track of Expiry Dates: Some benefits, like travel insurance or purchase protection, may have time limitations. Keep track of these to ensure you don’t miss out.
- Compare Cards: If you’re not getting much value from your current card’s perks, consider comparing other options. Websites like MoneyHub provide comprehensive comparisons of credit card offerings in New Zealand.
- Don’t Overspend: While these perks can provide great value, they’re not worth overspending or accruing debt. Always use your credit card responsibly.
Your credit card likely offers more than just a convenient way to pay. By understanding and utilising these hidden perks, you can extract significant additional value from your card. However, it’s crucial to remember that these benefits are only worthwhile if you’re using your credit card responsibly. Always pay your balance in full each month to avoid interest charges, which can quickly outweigh any perks you might receive.
Remember, the best credit card for you depends on your spending habits and lifestyle. Take the time to research and compare different options to find a card that offers perks that align with your needs. With a bit of knowledge and strategic use, your credit card can become a powerful financial tool, offering benefits far beyond simple purchasing power.