Have you ever tried to purchase something that is suddenly damaged as soon as you get home or items have been stolen after a couple of days?
Being proactive about your credit card account is not just a defense but it can also help reduce potential issues before they occur.
Purchase Protection Explained
Many credit card comes with benefits that you can take advantage as a cardholder such as rewards, sign up bonuses other offers and there is one interesting thing that they offer; the credit card purchase protection. Purchase protection safeguards all purchases made on a credit card from being damaged, lost due to fire, or theft up to a specified sum of cash.
Keep in mind that purchase protection is different from extended warranty coverage and price protection. Extended warranty coverage is basically an extended warranty of the item after the original warranty expires. On the other hand, price protection helps you get reimbursed when you purchase an item and later you find out that the item price has been dropped after a couple of days.
While Purchase Protection provides reimbursement for a purchase you made as it turned out certain things happen to that purchase within a set period after getting the item. Credit card purchase protection does not cost you at all, however, it does last for up to 90 days from the date of your purchase. You are usually covered with a limited dollar amount up to $1,000.
You may also check if you are eligible for this specific coverage, as credit card companies have different terms, depending on the type of card you own and in which creditor you are. Fees, specified period of coverage, and type of coverage may vary by credit card companies.
What is covered under Purchase Protection?
Items cover things like electronics, clothing, home products, and personal care items are covered under purchase protections such as;
- Recently-purchased item settled up on completely using credit card
- Items bought 90 days from the date of purchase (Note: coverage period may vary from bank to bank)
- Items bought as a gift (coverage extends whoever receives the covered item; however, it is the cardholder’s responsibility to notify the card issuer within a short period of time)
- Stolen items from a vehicle or home (however, credit card statement for that certain transaction and police report documenting the incident needs to be provided).
Good to know: You need to prove some sort of evidence or supporting documents to use purchase protection coverage. If you just simply misplaced the item you’ve purchased, it won’t be covered and reimbursed.
What isn’t covered?
These items are not eligible to cover under purchase protection:
- Cars or other types of motorized vehicles and their parts
- Living animals and plants
- Tickets or checks
- Perishable items or goods
- Refurbished items
- Mechanical issues (suitable for extended warranty coverage)
- Products seized by authorities
- Computer software
- Antiques or collectibles
- Usual wear and tear
- Gift cards
- Items misplaced under the care of common shippers or carriers (postal carriers, airplanes, etc.)
Good to know: Purchase protection coverage may vary depending on the credit card company’s policies.
Keep in mind that requirements and policies may vary from card to card. However, in general, these things must be provided when claiming purchase protection benefits;
- An official copy of the receipt (which includes the date of purchase, the cost, and item description)
- Credit card statement showing the reported transaction
- A police report (as required)
- Proof of damaged item (as required)
- Full details of the incident of when and where it has happened
- Any documents that support your file why a transaction needs to be covered under purchase protection
Bear in mind that filing a purchase protection claim does not always guarantee approval. If you have been denied, you may contact your credit card customer hotline and ask them why your claim was denied.
People with bad credit usually get limited options. It is not utterly hopeless to get a credit card with poor credit, few creditors are willing to lend a hand to help people with bad credit.
If you want to know how to fix your credit in Canada, you may contact https://www.creditrepairnow.ca, one of the best credit repair in Canada’s history.
Spending on your credit card seems exciting especially when you get something that you really wish for, however, spending with extra protection makes more confidence and value about your purchases.
Practically, all credit cards offer some level of security and can be applied in various conditions. Utilizing your benefits will help you lose your money on a thing that was lost or taken.