Chris O'Shea
Not all credit card benefits are created equal. Some can offer real benefits, while others can be more trouble than they’re worth. Here’s a look at some credit card perks that typically don’t provide much value.
Rental Car Insurance
- Pros: When you rent a car, the insurance can cost anywhere between $10 and $30 a day. If it’s a perk on your card, you’re already covered.
- Cons: Oftentimes credit card rental car insurance doesn’t include liability coverage. So if you are in an at-fault accident with property and/or bodily injury, you may be responsible for paying out of pocket.
Tip: Check with your credit card issuer about the details of the insurance coverage benefit before picking up your rental car.
Airport Lounges
- Pros: An airport lounge can be like an oasis inside the hustle and bustle of the airport. There are typically amenities like comfortable seating, free food, and drinks.
- Cons: Airport lounges may have long lines to get in, then long lines to secure free food and drinks. Some lounges may also restrict the length of time you can spend there.
Credits to Retailers
- Pros: Some credit cards offer monthly credits to specific retailers. For example, one card might offer a $10 monthly credit to Starbucks.
- Cons: The credits may come with limitations. So, if it’s for a retailer you don’t frequent, the credits don’t have a lot of worth to you.
Do One Thing: Before you sign up for a credit card, weigh the benefits carefully. Ask yourself:
- Are they truly beneficial?
- Do they line up with my spending habits?
If you’re hesitant about the benefits, you might want to keep looking.
