Credit card extended warranty: How it works, and best card options

When you purchase something expensive, it’s nice to know you’ll be protected if it stops working.

Manufacturers know this — which is why they often offer warranties. For example, an electronics company might offer a two-year warranty on a laptop. If the computer stops working, the warranty will pay to repair or replace it.

But what happens after the warranty expires?

If you purchased the item with a credit card, you could be in luck, as certain cards offer extended warranty protection.

In this guide, we’ll go over the best credit card extended warranty benefits programs — and how you can use them to your advantage.

What is a credit card extended warranty?

Credit card extended warranty coverage extends the existing manufacturer’s warranty on qualifying items you purchase using your credit card.

For example, say you buy a new TV for $500. It comes with a one-year manufacturer’s warranty. However, your credit card offers extended warranty coverage that extends existing warranty coverage by one year. So you'd now have a two-year warranty if you bought the TV with that credit card.

You can often qualify for extended warranty benefits by using your credit card to purchase. However, not all credit cards offer extended warranties, and the coverage doesn’t apply to all purchases.

How does extended warranty coverage work?

The specifics of credit card extended warranty protection can vary depending on the bank/credit card issuer (American Express, U.S. Bank, Bank of America, etc.) and the card network (Visa, Mastercard, Discover, etc.).

Therefore, you’ll want to check the coverage details for your specific credit card type.

Generally speaking, eligible warranties:

• Are available for a set period (one year, for instance)
• Extend the original warranty coverage for a set period
• Cover items worth up to a certain dollar amount ($1,000, for example)
• Serve as “secondary” coverage, which means they won’t kick in until the original manufacturer warranty expires
• Generally, cover the same types of physical damage/malfunction as the standard warranty (they won’t cover accidental physical damage, for example)

To find all the details of your credit card’s warranty coverage, you’ll have to look at your benefits guide or contact your credit card issuer.

Most credit card extended warranty plans will cover qualifying purchases for at least one year after the original manufacturer warranty expires. So, if you buy an item with a three-year manufacturer warranty, your credit card might extend that coverage to four years.

In many cases, your purchases can qualify for extended warranty protection simply by being eligible for purchases made using your credit card. You don’t typically need to opt-in or register products for this coverage.

You'll contact your credit card issuer if you need to submit a claim. If your claim is approved, the credit card issuer will generally provide a refund and ask you to ship the item to them. Of course, they may also pay for a repair — but in most cases, a refund is a go-to solution for addressing warranty claims.

What are some of the covered purchases?

Each credit card has different rules regarding what can and cannot be covered by extended warranties.

In general, eligible purchases include the following:

• Electronics
• Appliances
• Clothing
• Home goods
• Luggage

As you can tell by the briefness of the list of eligible purchases, extended warranties do not cover all purchases.

The types of items that are typically excluded include the following:

• Perishable items, like food
• Motorized vehicles
• Items intended for resale
• Medical equipment
• Software and subscriptions
• Professional and commercial items
• Jewelry
• Pre-owned items
• Gift cards

Also, remember that an extended warranty policy simply extends the original warranty coverage. If the item you purchase doesn’t have a manufacturer’s warranty, to begin with, then your credit card won’t offer any additional coverage.

Extended warranties will also exclude certain types of physical damage, including damage from natural disasters, acts of war, accidental damage, and normal wear and tear.

If you want to know more about the most popular credit cards that offer extended warranties, download Kudos today!

How to file an extended warranty claim

Filing an extended warranty claim can usually be done through your credit card issuer’s website. You will typically be asked to provide the following information:

• The original store receipt
• Information on the manufacturer’s warranty coverage
• The credit card statement that shows the date of purchase
• An explanation of what is wrong with the item or why it needs to be repaired or replaced

In some cases, the credit card issuer might request additional information. For example, some issues require calling a hotline to submit a claim, while others allow you to do it online.

The credit card company will review your claim to determine whether it meets its criteria. If it does, you may receive a full or partial refund for the original purchase cost. The refund is generally provided as a credit to your account balance rather than a cash refund. You’ll likely be asked to ship the item to the credit card company.

If you have questions about how to file a claim, it’s best to contact your credit card company directly.

What are the best extended warranty credit cards?

Not all credit cards offer extended warranty coverage. If this is a feature that’s important to you, it’s wise to consider this factor when looking for your next credit card.

It’s also wise to examine the details of each card’s coverage. While many cards offer a similar level of coverage (an additional one-year warranty is common), the specific terms and rules vary by card issuer.

Here are some of the best extended warranty credit cards available today:

Chase Sapphire Preferred

The Chase Sapphire Preferred credit card is a premium card with several great perks. It’s a great option for travelers, as it comes with no foreign transaction fee, great rewards, and a generous sign-up bonus. However, it has an annual fee of $95.

For extended warranty coverage, the Chase Sapphire Preferred Card offers up to one year of additional coverage on original manufacturer warranties of three years or less.

Capital One VentureOne

Capital One’s VentureOne credit card is an excellent option for a no-annual-fee card. It earns 1.25 points per $1 spent on all purchases and bonus points on certain travel activities. And it even comes with a sign-up bonus.

Regarding its extended warranty feature, VentureOne extends existing manufacturer warranty coverage for up to one year on manufacturer warranties of three years or less.

Chase Freedom Unlimited

The Chase Freedom Unlimited credit card is a great everyday credit card with no annual fee. It has a competitive rewards program that earns 1.5 points per $1 spent on all purchases, plus bonus points on drugstore, select travel activities, and dining purchases. In addition, there is a sign-up bonus and a 0% APR introductory offer.

The Freedom Unlimited card extends existing manufacturer warranties for up to one additional year on manufacturer warranties of up to three years.

Utilize all your credit card’s benefits

Credit cards can offer all sorts of perks; extended warranty coverage is just one of the potential advantages of credit cards. From rewards on your purchases to free rental car coverage to purchase protections on the items you buy.

One of the best credit card hacks out there is to simply read up on the benefits your credit card offers and make sure you utilize as many of them as possible! Money Crashers goes into a lot of detail on some of these amazing benefits in their article about the 14 best credit card perks & benefits you never knew you had.

But it can certainly get confusing knowing what perks you have and how to utilize them — especially if you have multiple credit cards (the average American has four!).

Luckily, there’s an easy way to take advantage of your credit card perks: Kudos.

Kudos is a free browser extension that helps you pick the best credit card to use every time you shop. The Kudos smart wallet analyzes all the credit cards you have, the perks they offer, and the rewards rates they provide — then gives you a customized recommendation before every purchase you make.

Kudos is the simplest way to optimize the benefits you get from your existing credit cards. And if you’re looking for a new credit card, Kudos can help with that, too!

Bottom line

Credit cards with extended warranty benefits can help protect eligible purchases by extending the original warranty coverage. Some of the best credit card extended warranty options include the Chase Sapphire Preferred card, Capital One’s VentureOne card, and the Chase Freedom Unlimited card.

Are you looking for the perfect credit card for your needs? Check out the Kudos Explore Cards feature to get all the necessary information.