The Best Credit Card Perks You Never Knew You Had
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We all know credit cards provide convenience for paying for items and give us a little extra breathing room to pay for a purchase. But did you realize your credit card may be loaded with perks and benefits that not only make your life slightly easier but could save you money too? Or, perhaps you’re searching for the best credit card option available, but you want to know what benefits to look for before you make a decision.
From a major welcome offer to generous rewards programs and consumer protections, let’s look at how you can maximize your credit card’s potential and what benefits you may not even realize you can take advantage of.
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Rewards programs
One of the most well-known benefits is the rewards programs attached to rewards credit cards. Rewards credit cards, such as the Chase Sapphire Reserve card, come with a program that enables you to earn cash back, points, or miles that enhance the value of your credit card. You earn a certain amount per dollar for every dollar you spend with a credit card. Eventually, after you earn enough points, you can convert them into various rewards.
Of course, terms apply to the program, and they’re ripe with rules (such as not applying to balance transfers), but if you’re strategic about using rewards points, you can add serious value to your card.
Raise Your Credit 80 points*
- 5 star service trusted by over 450,000 members
- Have processed over $11,000,000 in bill payments for members
- No deposit, no credit check, no interest
- New member promotions available
*Potential increase based on StellarFi member data. StellarFi numbers observed an average of 80 points VantageScore® 3.0 increase during a member’s lifetime. Score increase based on members with an incoming score range of 300-499 pts, who made regular on-time payments, with regular on-time payments. Results may vary.
Welcome offers
For starters, most rewards credit cards offer a signup bonus or welcome offer, where you earn a bank of points or miles simply by making a certain amount of purchases within the first few months. You should take advantage of these bonuses if possible because they’re typically worth a lot.
For example, the American Express Gold Card offers a welcome bonus of 75,000 membership points if you spend $4,000 in purchases within the first six months of card enrollment. Although the card has a $250 annual fee, this large bank of points can help offset this cost. And in most cases, you’d be hard-pressed to earn 75,000 points simply from your shopping. Many of these bonus points can convert to loyalty points for other programs, such as Hilton Honors, where you can earn free hotel stays or other forms of travel.
Multiple redemption options
Rewards programs are fantastic, but they’re only as good as the redemption options they provide. Some programs, such as the Chase Ultimate Rewards program exclusively for Chase rewards cardholders, let you convert bonus points or miles into numerous rewards.
Look for a program as flexible as possible, and in return, you’ll have a variety of ways to enjoy your rewards, which could include:
- Cash back rewards
- Dining credit
- Gift cards
- Rewards with Amazon or PayPal
- Use rewards with a shopping portal
- Apple Ultimate Rewards
- Pay Yourself Back
- Travel purchases
- Transfer to travel partners
- Hotel stays
- Airline purchases
- Statement credit
Not all of these redemption options apply to every rewards program. Still, the important step is to figure out what is most meaningful to you, such as future hotel stays, and find a card where you can earn your favorite rewards for everyday purchases.
You also want to pay attention to the redemption options that are most valuable for your credit card. Not all redemptions are equal. Sometimes a bonus point or bonus mile is worth less if you convert it to a certain item, such as a gift card. However, on the flip side, points or miles can be worth even more if you redeem them for one of the card’s travel partners. Again, it’s all about strategy and getting the most out of your redemption options.
Travel benefits
Many credit cards include travel benefits for cardholders, whether you’re a frequent flier or an occasional onlooker. Many of these benefits are tied to the card, not necessarily your participation in a rewards program. Before you go on your next excursion, check to see what your card includes and see if you can take advantage of these perks.
Credit towards pre-screen
Some credit cards include a $100 credit towards a Global Entry fee or TSA PreCheck fee. If you’ve traveled in an airport recently, you know what a major gift this could be. To qualify for these programs, you must go through an application process and pay a fee; some credit cards offer credit toward those fees. This saves you money and can be an enormous timesaver when traveling (and one less headache).
No foreign transaction fees
If you travel out of the country and use your credit card for purchases or use your card for an overseas purchase, some cards charge a foreign transaction fee for the transaction. This can add up quickly, so look for a card that offers a $0 foreign transaction fee, and you’ll avoid this costly add-on. While most travel rewards credit cards feature this, it’s not always a given, so it’ll benefit you to confirm beforehand.
Airport lounge access
You can receive other travel perks as a benefit, such as airport lounge access. For example, as a Chase Sapphire Reserve cardholder, you can access the PriorityPass. This entitles you to airport lounge access at over 1,300 lounges across 500 cities, so you can relax when dealing with a layover.
Raise Your Credit 80 points*
- 5 star service trusted by over 450,000 members
- Have processed over $11,000,000 in bill payments for members
- No deposit, no credit check, no interest
- New member promotions available
*Potential increase based on StellarFi member data. StellarFi numbers observed an average of 80 points VantageScore® 3.0 increase during a member’s lifetime. Score increase based on members with an incoming score range of 300-499 pts, who made regular on-time payments, with regular on-time payments. Results may vary.
Consumer protection
Credit cards can offer more than a fun rewards program. Some include serious consumer protections, which can further save you money.
Cell phone protection
You may be surprised to learn that numerous credit cards offer cell phone protection, which applies automatically if you use your credit card to pay your monthly bill. For example, the Capital One Venture X Rewards card offers up to $800 in reimbursement if your cell phone is stolen or damaged. Before you sign up for cell phone protection through your wireless carrier, check to see if your credit card offers any protection against theft or damage.
Everyday purchase protection
When you use your credit card to purchase, you may receive extra peace of mind with additional consumer protections. For instance, Citi credit cards include protection that covers damage or theft of an item up to 120 days after purchase, up to $1,000 per item, and $50,000 per year.
Other cards include benefits such as extended warranty protection, which automatically extends the manufacturer’s warranty by a certain amount of months or years.
Credit score monitoring
Numerous credit cards, such as cards offered through Discover, include free credit score monitoring. This benefit helps you quickly assess the health of your credit score each month and avoid “surprises” with your score. Since you’re likely checking your credit card statement each month, you can easily locate your credit score information as you’re doing so.
Rental cars
When you rent a car, you’re asked if you’d like to purchase added rental car protection. Your own personal auto insurance policy should provide some coverage, but credit cards often include secondary coverage too. Chase Sapphire Preferred offers Primary Rental Car Insurance, which means its coverage kicks in first, before your auto insurance – and perhaps helps you avoid a costly increase in premiums.
FAQs
How can I maximize my credit card rewards program?
Look for cards that reward you for everyday purchases you’re already spending money on. If this includes purchases at grocery stores and U.S. supermarkets, streaming services, gas stations, or Uber and Lyft rides, you’ll rack up rewards without overspending. Just remember to pay your balance in full each month to avoid costly interest charges that would negate any rewards.
What credit card has the best rewards?
The credit card with the best rewards features a rewards program that most closely aligns with your spending habits and program preferences. Carefully review how you spend your money, whether on groceries, gas, travel, or other everyday purchases. Also, consider other factors, such as if your points expire at the end of a calendar year or if the bonus categories and rewards are too complicated to keep track of. If it’s too complicated, consider a flat-rate cash-back credit card or something simpler to manage.
Are credit card rewards taxable income?
Some welcome bonuses and rewards points can be considered taxable income, but it has to meet a minimum threshold from the IRS. The best approach is to work with a professional to determine if you’re near the threshold.
Raise Your Credit 80 points*
- 5 star service trusted by over 450,000 members
- Have processed over $11,000,000 in bill payments for members
- No deposit, no credit check, no interest
- New member promotions available
*Potential increase based on StellarFi member data. StellarFi numbers observed an average of 80 points VantageScore® 3.0 increase during a member’s lifetime. Score increase based on members with an incoming score range of 300-499 pts, who made regular on-time payments, with regular on-time payments. Results may vary.
The bottom line
Your existing credit card may be full of benefits you didn’t realize you have, or it may be time to shop around for a card that includes some of these money – and time-saving benefits. A little research on your credit card’s features could greatly impact your wallet.
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Writer
Sara Coleman is a former corporate gal turned creative entrepreneur. She began writing professionally several years ago and now contributes to multiple websites, blogs, and magazines. She’s also an avid reader and can’t resist a great historical fiction novel. Sara holds a BA in journalism from the University of Georgia and can be found supporting her Bulldogs every chance she has. She resides in Charlotte, North Carolina, with her wonderfully supportive husband and three children. When she’s not ushering her kids to sports and dance lessons, she can be found creating content for her own website, TheProperPen.com.
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