MOST people have damaged or lost their phone at some point – but you might have a credit card in your wallet that can help you replace it.
This is thanks to certain cards offering cellphone protection coverage.
According to a 2016 survey by Kensington, 70million smartphones are lost in the US every year.
However, as smartphone sales increase each year in America, the current annual loss is likely to be even bigger.
To help, credit card companies are offering cell phone protection plans.
However, before you sign up for one, there are some things you need to be aware of.
First, all credit cards and protection plans are not created equal.
To get the protection, you will need to pay your cell phone bill with the credit card.
In most cases, just holding a credit card that offers cell phone protection is not enough.
Next, you might have to submit documents a billing statement from your wireless provider or a copy of a receipt.
Finally, a “lost” phone doesn’t qualify for coverage, and “damage” coverage varies on the type of credit card you have.
If you decide to pay the bill with your credit card, make sure to pay off the balance in full each month or you risk being hit with interest.
If you end up missing the payment deadline, you also risk late payment fees, which could damage your credit score.
Which credit cards offer cell phone protection?
Below is a list of credit cards that can help you save money the next time you drop your phone:
- Citi Prestige Credit Card
- Wells Fargo Cash Back College card
- Wells Fargo Cash Wise Visa Card
- Wells Fargo Platinum Card
- US Bank Visa Platinum Card
- Deserve EDU Mastercard for Students
- Ink Business Preferred Credit Card
However, make sure to read the terms and benefits page before signing up because the exact details of the protection plan are going to be outlined there.
Linda Sherry, director of national priorities at Consumer Action, told NerdWallet: “This can be a great savings for consumers if it is offered by their credit card and if they understand the terms.”
However, she emphasized that people should “understand what exactly is covered and the requirements for coverage, like loss, theft and damage.”
If you’re applying for credit, make sure to not submit several applications at the same time or you risk damaging your score.
You’ll also look desperate for credit to lenders, which means they’re unlikely to accept you or give you a worse deal.
The Sun explains how to build your credit score and how to fix errors on your credit report as complaints rocket.
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