SAN DIEGO (KGTV) — As Black Friday deals pop up everywhere, experts say using a credit card to pay may have more advantages than you think, beyond just earning rewards points.
"It's the time of year when people are looking to make big purchases, whether it's a big screen TV or a computer. But before you pull out your wallet, here are some things you should consider if you're going to use a credit card," financial experts advise.
Chip Lupo, an analyst for WalletHub, a personal finance company, says credit cards come with different perks that many consumers don't realize they have.
"Credit cards have a wealth of consumer protection benefits that again most people aren't even aware of," Lupo said.
The most common protection is fraud coverage. If someone steals your credit card number, fraud protection shields you from being responsible for unauthorized charges.
"So you're not financially liable if some bizarre high amount charge shows up on your credit card. You just have to report it if you see anything fraudulent," Lupo said.
Some credit card companies also offer extended warranty coverage on items. Currently, a TV protection plan typically costs between $30 to $600 depending on the type of TV and length of protection. Some credit card companies offer that type of protection for free.
There's also a purchase protection benefit, where some credit card companies will cover eligible purchases at no cost.
"Which would protect large purchases if they're damaged or stolen, typically between 90 to 120 days. And it does require receipts and statements," Lupo said.
Some retailers offer that type of protection, but you have to pay for it and there are certain restrictions in place based on the length of coverage and the amount they're willing to reimburse you.
Lupo says shoppers should read the fine print when they sign up for a credit card to see what options they're offering, so you can decide whether you need to buy extra protection when making a purchase.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
