Money Rehab with Nicole Lapin - Lost & Paid: The Credit Cards That Get Your Money Back

Episode Date: January 17, 2023

Have you ever had an online shopping order never arrive? If that happens to you, you know you'll need to speak to manager about getting a refund... but you don't really want to pull a Karen. You're in luck! There are credit cards that will do the Karening for you. Nicole fills you in.

Money rehabbers, you get it. When you're trying to have it all, you end up doing a lot of juggling. You have to balance your work, your friends, and everything in between. So when it comes to your finances, the last thing you need is more juggling. That's where Bank of America steps in. With Bank of America, you can manage your banking, borrowing, and even investing all in one place. Their digital tools bring everything together under one roof, giving you a clear view of your finances whenever you need it. Plus, with Bank of America's wealth of expert guidance available at any time, you can feel confident that your

money is working as hard as you do. So why overcomplicate your money? Keep it simple with Bank of America, your one-stop shop for everything you need today and the goals you're working toward tomorrow. To get started, visit bofa.com slash newprosmedia. That's b-o-f-a dot com slash n-e-w pros p-r-o-s media. bfa.com slash newprosmedia. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. We're still using our credit cards more than ever, even as prices are rising. But prices aren't the only thing going up. Interest rates are also rapidly climbing. Yet we're still out here using our credit cards like it's 2020.

I think it's time to reassess our relationship with credit and how we think about debt. But we also can't abandon credit cards entirely. I think it's time we reassess our relationship with credit and how we think about debt. But we also can't abandon credit cards entirely. Credit cards make up a significant portion of our credit score. And if used carefully, they can provide some very unique protections, especially when it comes to bigger ticket purchases. While you don't want to be out there buying things you truly can't afford on credit, it does make sense to make larger purchases on your credit card to take advantage of the benefits that the card offers. We're going

to talk about three of those benefits today and which cards do the best job at delivering said benefits, starting with number one. P, purchase protection. Let's say you're a big gamer and you finally managed to score that new PlayStation 5. I personally don't know what all the fuss is about, but I know there's fuss. So say your PlayStation is shipped to your house, but it gets swiped by porch pirates. Now, if you have renter's insurance or homeowner's insurance, you could probably be covered that way. But if you don't and you bought the PlayStation using a credit card that offers purchase protection, well, you can get your money back from them. Unfortunately, it won't make it any easier to replace your item, which could be an issue based on what I've heard about how ridiculously hard it is to get a PlayStation right now, but I take rest.

Purchase protection is awesome, but it's a credit card benefit that actually doesn't get much love from the companies themselves. And actually, it's a benefit that's slowly being phased out. But here are two cards that still offer this service. First up, American Express Gold Card. Did you know that they come in rose gold too? All that gold gives you one of the more generous purchase protection plans out there. They cover purchases up to $10,000 and up to $50,000 a year. Other American Express cards cover different amounts, but they all cover items purchased using their loyalty points. If you do make an insurance claim for a lost or damaged item,

but insurance won't cover the full cost, then Amex will cover the rest. Making the claim is actually pretty simple. You have 30 days to do it from the date of the incident. American Express will want proof of loss. So if you filed a police report about your stolen package, let's say they would want a copy. The process is pretty straightforward. There are limits to what they will cover. For example, if the property is confiscated by the government, they're not going to cover you. So for all you frat bros listening out there, if the cops raid your frat house and confiscate your SIGGAP bongs, you can't get your money back. But otherwise, this card, and American Express in general, offers great purchase protection.

The Chase Freedom Unlimited card offers less generous purchase protection, but it is one of the few non-American Express products that offer it. Chase only provides up to $500 in coverage. However, they do allow you 120 days from the date of the purchase to make your claim. And the process of completing the claim is pretty similar to the one for American Express. So rinse and repeat. Here's the second credit card perk that we love. Extended warranty. Much like purchase protection, extended warranty is designed to protect your bigger and more important purchases. The way it works is that if you purchase something that has a manufacturer warranty, the credit card company will add a year onto that warranty, generally up to three years,

but sometimes more. So if the warranty is for two years, but you made the purchase with an eligible card, well then, well, bam, the warranty is now three years. Most companies offer pretty similar benefits with slight variations. Again, American Express comes in solid, with an additional year on top of the manufacturer's original warranty of up to five years. They cover up to $10,000 per purchase. Both Visa and Chase offer an extra year on warranties up to three years. So for that PlayStation 5, the warranty offered by Sony is good for a year. Using a card that offers an extended warranty benefit would make it a two-year warranty.

For the third and final event, travel protection. Now, this is where it gets really good, but also somewhat confusing. And I don't want to just be rattling numbers off to you. Some credit cards function like trip insurance if you book the trip on the card. For example, the Chase Sapphire and the Chase Preferred card, as well as several Amex cards, offer up to $10,000 a trip if your trip gets canceled or interrupted. These cards also offer a daily rate of around $100 if your luggage gets delayed and up to $3,000 if it gets lost. That is a really significant perk based on how

traveling has been such a shit show lately. These cards offer varying amounts of insurance on rental cars as well and accident insurance up to $500,000. These are benefits that go well beyond miles or a free checked bag. It suddenly makes sense to book all of your vacation on one card. So what's the big point here? Credit cards have their uses as well as their risks. The best way to use them is with intention, making purchases where you can get all the benefits from that card rather than using them to fund impulse purchases. For today's tip, you can take straight to the bank. If you make a purchase and you're unhappy with the product or you don't receive it at all, call your credit card company and ask for a chargeback. As long as you've tried to resolve the dispute with the vendor themselves and you have some sort of proof of the problem,

your credit card will probably be willing to return your money. I mean, you pay a lot to borrow money from your credit card company in the form of interest. You should be getting something in return. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Our executive producer is Morgan Lavoie. Do you need some money rehab? And let's be honest, we all do. So email us your money questions at moneyrehab atmoneynewsnetwork.com to have your question answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. Seriously, thank you for listening and investing in yourself,

which is the most important investment you can make. Thank you.