So even though wealthy folks don’t necessarily need to use credit cards, they still do. Here are seven reasons why: [This article was first published on The Simple Dollar in 2020. It was updated in March 2022.] Also: The best Marriott credit cards: Enjoy extra travel perks The card’s trip cancellation/interruption insurance is another popular perk. This insurance covers the cardholder and their immediate family members for up to $10,000 per covered trip and $20,000 per occurrence with a maximum benefit of $40,000 every 12 months. You have to use your card to pay for the trip to be covered. But the insurance will kick in to reimburse you if your trip is cancelled or interrupted for any reason, such as severe weather, accidental bodily injury, or financial insolvency of your tour operator or airline. While the rich could easily buy a travel insurance policy that provides these benefits, why not get it for free if you can? Not only can they earn rewards for using their card to pay for their trip, but they get tens of thousands of dollars in travel coverage without paying for it. Cardholders also get complimentary benefits with Fine Hotels & Resorts, a luxury travel brand, along with up to a $200 airline fee credit for checked bags and in-flight purchases. Last but not least, cardholders get a credit to cover the costs of applying for Global Entry or TSA Precheck – airport programs that let you skip lines and get expedited security when you fly. Also: The best credit cards for good credit: Reap the rewards Basically, everyone loves skipping lines at the airport, so we shouldn’t be surprised that the wealthy gobble up this perk in droves. Extended warranties are another big perk everyone else loves. Extended warranty coverage through Chase, for example, extends the US manufacturer’s warranty on qualified items for an additional year, provided the initial warranty was three years or less. The coverage is good for $10,000 per claim and up to $50,000 per year – which is hardly pocket change, even for the very wealthy. For example, Citi Entertainment is a program created for Citi cardmembers. If you qualify, you can get access to presale concert tickets, special promotions, and VIP events. But, if you use a debit card, you could be on the hook for up to $500 in fraudulent purchases if you don’t report the fraud within two business days. And if you don’t notice the fraud for 60 calendar days after your statement is sent to you, you could be liable for all fraudulent purchases plus any money the thief is able to extract from your bank account. Say you have the Platinum Card from American Express. You can either call the 1-800 number or email their travel concierge to get helps with all sorts of things. For example, you could:
Have the Amex concierge order flowers for anyone using a local florist, then place the charges on your Amex credit card.Ask the concierge to help you secure hard-to-get dining reservations at the world’s most popular restaurants.Request and receive concert tickets to a show the day they go on sale.
These are just a few examples of ways a concierge service could assist you; the sky is the limit. And in the absence of your own personal butler or assistant, a helpful credit card concierge service may be the next best thing.
