Making a big purchase can be stressful — especially if you finance it with a credit card. The right benefits, however, can help you manage purchases and protect them long after you swipe and sign.
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Here are some smart options for using your credit to your advantage while committing to a big-ticket purchase.
0% Introductory APR
Unfortunately, no credit card offers a permanent 0% annual percentage rate. However, if your card is in its introductory period, it can make a big purchase easier to manage within your budget. Check how many months you have left at 0% APR, divide the purchase amount by that number, and then make equal payments to zero the balance before interest kicks in.
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Built-In Buy Now, Pay Later Features
You’ve heard of (and maybe even used) buy now, pay later options such as Affirm, Sezzle and Klarna. A new option is a BNPL feature built into your credit card. Not all credit cards offer it, but some do, including Citi Flex Pay, American Express Plan It and Chase Pay Over Time, according to U.S. News & World Report. For example, Citi Flex Pay offers a three-month, no-interest payment plan on purchases of $75 and over made with an eligible Citi card. And if three months isn’t long enough, longer plans are available for a fee.
Extended Warranty
It’s smart to have a warranty when making a big purchase so you don’t have to cover repairs or replacements out of pocket. It’s important to note, however, that things can break or malfunction once it expires. That’s where an extended warranty comes in. Some credit cards offer this benefit if you pay for the purchase with it, but terms will vary.
Credit cards that offer extended warranties include Blue Cash Preferred Card from American Express, Chase Freedom Unlimited and Amazon Prime, according to Lending Tree. The Amex Blue Cash Preferred Card adds up to one year of warranty coverage on eligible items with a manufacturer’s warranty of five years or less, covering up to $10,000 per claim and $50,000 per year.
Price Protection
Price protection helps if the price of your big purchase drops soon after you buy it. To use it, you’ll need to make the purchase with an eligible credit card. Next, if you spot a lower price within the time frame your card allows, you can file a claim for the difference.
When filing, you’ll usually submit a copy of your credit card statement showing the charge, an itemized receipt and proof of the lower price. Proof can include a dated store flyer, a link or a screenshot from the retailer’s site.
Cards that offer price protection include Navy Federal More Rewards American Express Card and Capital One Walmart Rewards Mastercard, per Forbes. The Capital One Walmart Rewards Mastercard, for instance, offers price protection coverage of up to $250 for up to 120 days after purchase[5a].
Purchase Protection
Some credit cards include purchase protection, which can cover the cost of repairing or replacing items that you buy with the card for a set period of time. The length of coverage and the protection limits depend on the specific card.
Chase Freedom Flex and American Express Gold are two credit cards that offer this benefit. Chase Freedom Flex offers purchase protection of $500 per item (and $50,000 per account) for 120 days after purchase.
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This article originally appeared on GOBankingRates.com: 5 Smart Ways To Simplify Big Purchases Using Your Credit Card
