MoneyDon't Waste Your Money


Don't Waste Your Money: Credit card benefits being sliced

Posted at 2:24 PM, Aug 10, 2020
and last updated 2020-08-10 15:26:53-04

As the pandemic drags on, you might start to notice that rewards are not what they used to be.

Your credit card might be cutting some of them.

You know those little notices your credit card sends you every now and then?

You may want to check them carefully, because during this pandemic many of them are removing some of the great benefits they offered.

Jan Arnett spends most days restoring his beloved Ford Model-T.

When he would buy tools or parts, he loved that his MasterCard would extend the standard warranty.

“One of the things I look to my credit card for is the ability to extend the warranty,” Arnett said.

Whether a wrench or refrigerator, that extra warranty was a great perk.

"Buy three or four large items in a year and you can save $300 or $400," he said.

But Arnett opened his mailbox the other day to find his card is now ending that benefit.

"If it was only the extended warranties that were disappearing, well that would be one thing.

“But it turns out many cards are quietly removing other perks as well."

The Washington Post says card issuers including are eliminating many benefits this year.

They include:

  • Extended warranties.
  • Rental car coverage.
  • Travel insurance
  • Lost luggage reimbursement.

And price purchase protection, which is also going away on Jan's card.

"Price protection is if you buy it from Lowe's, and then you find it cheaper at Home Depot, they will adjust it for you."

Card issuers claim customers rarely used the benefits, especially during the pandemic when most people are not flying, the Post says.

But Jan says he's going to miss his perks, and would switch cards except for the impact on his credit.

"I could get a different one, but the problem is it does impact your credit score,” he said.

So, like this old car, he's just going to deal with changing times.

The good news is that cards are not cutting their fraud protection .... only the side perks that were just costing them too much.