If you have a few big personal purchases coming up, putting them on your credit card with extended warranty is a great way to get more security and peace of mind.
So, if you don’t have one already, how do you find a credit card with extended warranty?
What is a credit card with extended warranty?
Extended warranty is one of many credit card perks or rewards. Extended warranty is often available on a “platinum” or “rewards” credit card, as one of several perks.
Extended warranty itself is an additional insurance that extends the life of the retailer or manufacturer’s warranty on your purchases. For example, if you purchased a microwave with a three-year Australian warranty, you could potentially extend that warranty by one additional year through your credit card insurance.
As the name suggests, this extended warranty comes into effect only once the Australian warranty on your purchase expires. So, if you found yourself with a faulty microwave after three and a half years, that’s when you would look to make a claim via your credit card insurance.
What can the extended warranty be used for?
Since this type of insurance extends the life of a warranty already in place, extended warranty is generally available on retail and personal purchases. Think of your big-ticket items that already come with warranties in place: electronics, white goods and the like.
Different credit card providers will have different insurance policies in place that dictate what their extended warranties do and do not cover. So, if you were planning on purchasing that washing machine on your credit card to take advantage of the extended warranty, make sure you look up the actual insurance policy and read through the product disclosure statement (PDS.) This will outline what you can and cannot claim, and by how much your warranty will be extended.
How do you use the extended warranty?
The first step to claiming extended warranty is to make sure your items are actually covered by this insurance. Some providers will automatically cover “eligible purchases” made on your credit card, but others will require you to actually register the item or items. This shouldn’t cost you anything, but it does mean more paperwork and organisation on your part.
When it comes to making a claim you will need to show proof of purchase, and this means keeping your receipts. This is also to prove that the item was purchased on your credit card, and thus eligible for extended warranty insurance in the first place.
Once you have an eligible purchase and your proof of purchase sorted, you will need to contact your credit card provider and fill out a claims form to start the process.
Pros of extended warranty credit cards
- Extended cover for your personal purchases
- Eligible purchases are automatically covered by some providers
- No need to purchase extended warranties via the retailer
Cons of extended warranty credit cards
- Extended warranty often comes bundled with other perks on a high-interest credit card - make sure you can afford the interest rate
- There is usually a high annual fee on these credit cards
- Not everything is covered - make sure you understand what you can and cannot claim before making any purchases