Things to Know Before Buying an Extended Warranty on your Purchase

Did you know that many gold and platinum credit cards actually offer extended warranty on your purchases?

These days Australians have a wide and varied range of credit cards to choose from; and since the rapid growth of the Internet are more able to shop round and compare credit cards before making a selection. Whilst this is good from the customer’s point of view it has put the onus back on credit card providers to make bigger and better deals in an effort to attract new custom. This has resulted in features and card benefits being added to reward programs, which can be very useful for the astute consumer prepared to look around.

Citibank Clear Platinum Visa

The Citibank Clear Platinum is a rare platinum credit card offer, since it has a considerably low interest rate on purchases. Other that, it also features Purchase Cover Insurance and Extended Warranty Insurance, as well as complimentary international travel insurance.

• $99 annual fee
• 11.99% p.a. on purchases
• 2.9% p.a. for 12 months on balance transfers
• Cash Advance Rate of 21.74% p.a.
• 55 days interest free
• Minimum Income Requirement of $35,000 p.a.

Read the Citibank Clear Platinum Card terms and conditions.

Extended warranties

One of the more recent introductions to the card benefits is that of an extended warranty on purchases. What this means is that when you buy a product that comes with for example a 12 month warranty, by using your credit card to make the purchase you can have the warranty extended to 2 years at no cost to you.

There is a mixed point of view as to the value of extended warranties. The Trade Practices Act in Australia mandates that consumers must be given a statutory warranty on their purchased products to protect them against replacement costs, or repair if the product fails through faulty parts or workmanship or a refund if required. Consequently even though you may receive a warranty from the manufacturer with your product, you have a fallback position with the statutory warranty. This is the part of the reason consumer groups feel that extended warranties add no value to the customer except an additional cost.

So when you are being offered an extended warranty where you have to cover the cost, you may decline to accept; but having made your purchase with your credit card can entitle you to a free extended warranty. Quite often the extended warranty offered will either double the life of the initial warranty or add an extra 12 months. Which can be useful if you do not have to pay for the benefit.

Entitlements

But having said that not all credit cards are created equal and it is in your own interests to examine the small print on the terms and conditions of your particular card to establish exactly what your entitlements are.

The normal, basic or no frills card doesn’t tend to have these types of offers they are most likely to be found on the more expensive Platinum and Gold cards with substantial card benefits and reward programs. You don’t pay directly for the extended warranty but probably indirectly by means of higher annual card fees or interest rates. Depending on your spending habits and financial situation you need to work out whether the cost of the card is worthwhile for the benefits you receive.

Different credit cards offer different options, an example of one is the coverage offered by American Express cards:

1. Refund protection - this will provide a refund on your purchase even when not offered by the retailer
2. Buyer’s advantage – this warranty will double that of the manufacturer by up to 12 months
3. Purchase protection – this warranty is your protection against your product being stolen or needing repair and a refund or replacement is provided

Take note that most extended warranties will have caps on the claims, plus time limits. You will also find some of your purchases are not eligible for warranty coverage, and the extended warranty can only be applied to the manufacturer’s original warranty. Be aware that closing your credit card account will negate the benefit from the credit card.

Check out today's featured offers:

Westpac Low Rate	Citibank Clear Platinum	Qantas AMEX Discovery	ANZ Platinum
0% p.a. for 6 months on purchases & balance transfers	2.9% p.a. for 12 months on balance transfers	$0 annual fee Up to 10,000 Bonus QFF Points	0% p.a. for 6 months on purchases & balance transfers

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Popular Credit Card Offers

			Interest Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Cash Advance Rate (p.a.)
	Westpac Low Rate Card - 0% Offer	A credit card with a low rate offer on both balance transfers and purchases, plus a low annual fee.	0% for 6 months (reverts to 13.49% )	0% for 6 months	$45	21.49%
	Citibank Clear Platinum Card	Competitive interest rate on purchases and balance transfers offer.	11.99%	2.9% for 12 months	$99	21.74%
	St George Vertigo	Take advantage of this great offer from St.George with a low rate on purchases and a low balance transfer offer.	13.24%	0.99% for 12 months	$55	21.49%
	ANZ Platinum Credit Card	An introductory interest rate offer on balance transfers and purchases, plus a $0 first year annual fee.	0% for 6 months (reverts to 19.24% )	0% for 6 months	$0 annual fee for the first year( $87 thereafter)	20.99%