I decided to make extended warranty the 2nd reason to use a credit card since this is the most applicable and most often overlooked benefit of credit cards.
Every single credit card known to me, and I know hundreds of them, offers free extended warranty on purchases.
How many times have you or someone you know had an electronic device break days after the manufacturer’s warranty expires?
It sucks when it happens, doesn’t it?
Worry not. If you used a credit card to buy the TV/laptop/fridge/whatever, and the device came with 3 years or less of manufacturer’s warranty, the credit card doubled your warranty time up to 12 months. For free. If your iPhone came with a one year’s warranty, your credit card will make it 2 years.
If your iPhone stops working after a year and a half, and you’re enraged because Apple only covers one year of warranty for the expensive phone, calm down, your (for example, Citi) credit card will pay for the repair or replacement up to a certain amount. Take the money, buy a new smartphone using a credit card, and you’ll be given an extra year of warranty again. For free.
It is crucial that you retain a receipt in order to be able to file a claim in the future. I suggest keeping the original receipt and taking a picture of it. Visa allows you to store a picture of the receipt on their website to document the purchase and facilitate claims; you should take advantage of this function right after you buy an expensive item in case you later misplace the receipt or don’t remember which credit card you used.
We all hope that things we buy function as long as possible. And when they disappoint, we need a backup plan. Why decline free extended warranty? Use your credit card.
-Richard
Hiep's Finance 