Free Extended Warranty – Another Reason to Pay With Credit Cards

I hate buying new appliances.  There, I got that out of the way.

So, we needed a new dishwasher.  We did the research, found the best price, and I ventured to Home Depot to take care of the purchase and arrange for the delivery and installation.  When the critical moment came for me to pay for it, I had lots of choices (cash, check, my Home Depot card, or any of the myriad of credit cards I am always writing about), but it really came down to one choice: my Home Depot card or a non-store credit card.  This time, it was an easy choice.

​If a store is offering 10% off or free delivery or some other perk that’s worth quite a bit in savings, I’ll usually lean toward the store credit card route.  But there was no such incentive this time.  So, why did I use my Chase Sapphire Preferred?  Because it is a Visa Signature card, and that includes many non-travel benefits you may not know about.  Not every Visa credit card is a Visa Signature, and it’s easy to tell.  Just look on the back.  if you see something like the picture below, then it’s a Visa Signature card.


Let me explain what perks this gives you

Visa Signature cards offer free extension of the original manufacturer’s warranty, and that was a big factor for me.  Here is the exact language, courtesy of Visa themselves.  “Warranty Manager Service offers Extended Warranty Protection that doubles the time period of the original manufacturer’s written U.S. repair warranty up to one (1) additional year on eligible warranties of three (3) years or less when an item is purchased entirely with your eligible Visa card.”  So, by paying for my new dishwasher with my Chase Sapphire Preferred (a Visa Signature card), I have taken my one year warranty to two years at no extra cost.  If something goes wrong, I simply call 1-800-882-8057 to file a claim, submit the necessary paperwork, and the warranty repair process will begin.  
The process is actually fairly straight forward.  When you purchase an item with your Visa Signature credit card, you can immediately register the item here.  You can even upload your receipt as well, so if anything should arise that causes you to need to file a claim, you’re ahead of the game.  Moving forward, I will be certainly be taking advantage of this perk.  
Now, full disclosure.  Visa does not have the exclusive on credit card backed extended warranties.  Here is a great article to show you how the different payment networks stack up on extended warranties.

Now, I said that any Visa Signature card qualifies for this benefit, and that’s true.  Why, then, am I so fond of the Chase Sapphire Preferred?  Well, for this purchase, the warranty coverage was the same for all Visa Signature cards.  But I greatly value Chase Ultimate Reward points, so it was a win-win to pay with the Sapphire.  But what if I had just dropped $700 on a new iPhone and then actually dropped said iPhone?

Here is what I get from Visa Signature’s Purchase Security Benefit: “Eligible purchases are replaced, repaired, or reimbursed for the first 90 days from the date of purchase in the event of theft, damage due to fire, vandalism, accidentally discharged water, or certain weather conditions.”


This doesn’t have to be a disaster if you paid with the right card

​By comparison, here is what I get if I buy the phone with the Chase Sapphire Preferred card.  “If you buy an eligible item in the United States using your Account or rewards points earned on your Account and experience theft, damage, or involuntary and accidental parting with property within one hundred and twenty (120) days from the date of your purchase, Purchase Protection will replace, repair, or reimburse you up to a maximum of five hundred ($500) dollars for each claim and up to fifty thousand ($50,000) dollars for each Account. The decision to replace, repair, or reimburse you will be made at the Benefit Administrator’s discretion.”So, I get an extra month and a more flexible list of conditions with the Sapphire.  But can I do even better?  Let’s check what I can get from the Starwood American Express: “For your item to be eligible for coverage, you must have purchased it within 90 days.  You must file a claim within 30 days from the date your item is stolen or accidentally damaged.  You will only be covered up to the amount charged to your Card, up to $1,000 per occurrence, and coverage cannot exceed $50,000 per Card Member account per calendar year. Any shipping and handling costs for the original purchase will not be refunded.  Purchase Protection can cover your item if the full purchase amount isn’t already covered by any primary insurance you have.” So, on the purchase protection front, the Sapphire Preferred offers 30 more days, but AMEX is offering up to $1,000 back instead of $500.  Folks, lots of credit cards offer purchase protection.  Brush up on your card(s) to see what you have and use it accordingly. We talk a lot on this site about points per dollar, which signups are the best offers, etc., but it is always worth becoming familiar with the other benefits of your credit card.  And the great thing is, you can easily find these benefits online now.  So, get familiar with your various cards, and the next time you have to make a major purchase, give some thought to which card offers not only the best rewards, but the best protection as well. If you enjoyed this post, please email it, share it, tweet it, etc.  And thanks for reading checking in with us!
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