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Credit card companies slashing perks, rewards due to pandemic

Posted at 6:16 AM, Aug 19, 2020
and last updated 2020-08-19 06:33:33-04

You know those little notices your credit card sends you every now and then?

You may want to check them carefully because during this pandemic many of them are removing some of the great benefits they offered.

Jan Arnett spends most days restoring his beloved Ford model-T. When he would buy tools or parts, he loved that his Mastercard would extend the standard warranty.

"One of the things I look to my credit card for is the ability to extend the warranty," Arnett.

Whether a wrench or refrigerator, that extra warranty was a great perk.

“Buy three or four large items in a year and you can save $300 or $400," Arnett said.

Unfortunately, Arnett opened his mailbox the other day to find his card is now ending that benefit. If it was only the extended warranties that were disappearing that would be one thing, but it turns out many cards are quietly removing other perks as well.

The Washington Post says card issuers are eliminating many benefits this year, including extended warranties, rental car coverage, travel insurance, lost luggage reimbursement and price purchase protection, which is also going away on Arnett's card.

Price protection is if you buy it from Lowe's, and then you find it cheaper at Home Depot, they will adjust it for you.

Card issuers claim customers rarely used the benefits, especially during the pandemic when most people are not flying, the Post said.

Jan says he's going to miss his perks and would switch cards if it didn’t impact on his credit.

"I could get a different one, but the problem is it does impact your credit score," Arnett said.

Like his old car, he's just going to deal with changing times.

The good news is that card companies are not cutting their fraud protection only the side perks that were just costing them too much.

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