Credit card extended warranties: How do they work?

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Some credit cards come with valuable benefits that may not seem that great until you actually need them. One such hidden credit card perk is the extended warranty, which can help repair or replace expensive items you purchase with your credit card provided they meet certain conditions.

The purpose of extended warranties is exactly what it sounds like it would be — to extend warranties on items that already come with a manufacturer’s warranty. While it’s pretty obvious an extended warranty won’t come into play for the bulk of items you purchase with a credit card, having this protection can easily save you thousands of dollars when you use plastic to pay for pricey items you want some coverage for, like appliances, new computers or electronic equipment.

What is a credit card extended warranty?

A credit card extended warranty applies to purchases made with a credit card that offers a manufacturer’s warranty to begin with, and you can qualify for this coverage just by paying with the right credit card.

The terms of your credit card extended warranty coverage can vary based on the type of card you have, but extended warranties are usually available for a set amount of time and up to a specific dollar amount. Other terms can apply. For example, credit card extended warranties from some types of cards may only apply to manufacturer’s warranties that last for a specific period of time, like three years or less.

What is and isn’t covered by credit card warranties

What this coverage includes (and excludes) can also vary depending on the credit card you have. With that being said, most credit card extended warranties will add at least one year of warranty coverage after the item’s manufacturer’s warranty expires.

Covered events usually match the manufacturer’s warranty terms and conditions, but may include coverage for defects in material or workmanship of a product. If you purchase a refrigerator and the ice maker or electronic control board stops working, for example, this is typically something that would be covered by a manufacturer’s warranty while it’s in force.

Instances that can exclude your item from coverage from a manufacturer’s warranty can vary depending on your card but may include acts of war, normal wear and tear, damage caused by modifications to the product and more. Make sure to read through your credit card’s extended warranty paperwork so you know what is and isn’t included ahead of time.

How do credit card extended warranties work?

Credit card extended warranties are fairly cut and dry and easy to use. All you have to do for this coverage to apply to your item is to use a credit card with extended warranty coverage to pay. You also need to make sure that the item comes with a manufacturer’s warranty, and that you keep any paperwork that lists this information.

Further, you will want to keep a copy of the original receipt of purchase for the item, as well as the credit card statement that shows you paid with your credit card. You’ll need all of this information when you go to file a claim……Read More>>

 

Source:- bankrate