The best credit cards offer some pretty sweet benefits. Not only are they a secure way to pay for purchases, but many offer the chance to earn cash back or other rewards on your spending. And some offer credits for subscription services, travel purchases, or airport lounge access when you travel.
But that’s not all! Here’s a closer look at a few benefits of credit cards that aren’t gushed over as often — but can save you money.
1. Travel insurance
Hanging out in an airport lounge is a pretty sweet way to kill time at the airport, but having that lounge access won’t do you much good if your flight is canceled — or your luggage gets lost in transit. That’s why it’s worth looking for a top-rated credit card with travel insurance.
Coverage varies by card, but you might enjoy perks like trip delay insurance. This could compensate you for the extra meals you buy and the hotel you need to book when your flight is canceled and you’re stuck for a night. If your checked luggage goes missing, baggage delay insurance could compensate you for new clothing, toiletries, or a phone charger you might have to buy.
2. Primary rental car insurance
Let’s turn to a benefit that isn’t sexy but can save you money in the event of a mishap with a rental car. Some credit cards offer primary rental car insurance if you pay for a rental with the card.
The “primary” part of this is important — it means you’ll turn to your credit card’s insurance benefits before your own auto insurance coverage. If your rental car is stolen or breaks down and must be towed, your card’s benefits cover this. And if the car is damaged in an accident, your credit card’s insurance benefits pick up the tab for repairs.
It’s important to note that the coverage is capped at a certain dollar amount and may not cover exotic vehicles or rental periods over a certain length of time (such as 31 days). Nevertheless, this is a valuable benefit if you rent cars often. Find out more about the best travel credit cards and look for one with this perk.
3. FICO® Score monitoring
Staying on top of your credit score and taking steps to improve it (or keep it high) is one of the smartest things you can do to manage your personal finances. Having a high credit score translates to lower interest rates when you borrow money (in the form of loans or credit cards).
But it can also help you get hired, get approved to rent an apartment, and even save you money on auto insurance in many states. Research from The Motley Fool Ascent found that drivers with excellent credit paid an average of less than half of what drivers with poor credit paid for insurance premiums last year.
Some credit cards offer free FICO® Score access and will notify you of changes in your score and suggest ways you can improve it. Your FICO® Score in particular is a valuable credit score to know — it’s used by 90% of lenders when deciding whether to approve you for a loan (and deciding what interest rate to charge you).
4. Purchase protections
Finally, your credit card can give you peace of mind and save you money when you shop. If you buy something expensive, like a new phone, and it’s damaged or stolen not long after, a credit card with purchase protection can help.
You can also file a dispute with your credit card issuer if you make a purchase online and the item never arrives. You’ll need to reach out to the seller first to see if they can make things right, but if they’re not willing to work with you, your credit card company can make you whole.
These credit card benefits might not be as exciting as a travel credit, airport lounge access, or a free subscription to a food delivery service. But they can save you real money — and come to the rescue in the event of a travel or purchase mishap.
