Credit cards that offer price protection are a tempting offer. Since last year, consumer credit cards that offer price protection programs have gone up 4% from 49% to 53% percent. When signing up for these programs, cardholders receive a refund when they purchase an item and the price drops in a certain period of time. The terms of these programs vary based on each issuer and each card.
But it can be hard to determine whether or not getting one of these cards is worth it. Check out these tips to help you make your decision.
You Might Have to Do Your Own Homework
Among most issuers for these types of programs, consumers must notify the issuer of a price drop and provide them with proof that a lower price became available. However, some issuers offer automatic price monitoring to customers who register the items they purchase.
Time Range Will Be Limited
In most cases, issuers provide price protection for 60 days but some programs provide protection for as much as 120 days after purchase.
You Might Have a Cap on How Many Claims Per Year
17% of issuers limit the number of price drop claims that a person can submit each year to as few as four claims. If the card doesn’t offer many other advantages, that’s not a lot of savings.
Not All Items Qualify
Some high-price items might not even be eligible for this perk. Jewelry purchases, for example, are frequently excluded from price protection.
If you are considering one of these cards or whether or not to submit a claim, be sure it is worth your effort before making any commitments. Keep in mind the price you paid for the item you purchased, the amount of money you can gain by submitting the claim and how much of your time it will take up in comparison to how important it is.