Your Credit Card Might Be Hiding Some Serious Perks. Here's How To Find Them.

Choosing a new credit card can be incredibly intimidating — especially if there’s a large annual fee involved — but, for many people, it can be well worth it. If you’re handling your credit line responsibly, a card with incentives can score you free flights, hotel stays, Uber rides, cash back and gift certificates at your favourite stores.

However, the most underrated perk has to be the peace of mind that a credit card can provide. Most people don’t even know that their cards offer certain protections that can save them from the headaches of arguing with shady retailers — and thousands of dollars.

That’s what Brian Kelly, best known as The Points Guy, told us — Raj Punjabi and Noah Michelson, hosts of HuffPost’s “Am I Doing It Wrong?” podcast — when he dropped by our studio to talk about how to nab the best credit card perks.

Listen to the full episode by pressing “play”:

If you’re a frequent traveller, read the fine print of your credit card contract. Once you figure out which types of protections you have, they can be super beneficial in dire situations. For example, flight delays and cancellations are a lot less stressful when you’re not stranded at the airport.

“[Some] credit cards have what’s called ‘flight cancellation and delay coverage.’ So if you put your flight charge on a Chase Sapphire Reserve and if your flight’s delayed six-plus hours — or 12 on certain cards, it depends — you can get $500 or $1,000 a person, to use at a hotel,” Kelly told us. “So when my flight’s delayed for 12 hours, I’m not sitting [at the airport]. I’m going to a nearby hotel, having a fabulous lunch paid for by my credit card company ... or I’ll get a day hotel.”

Many credit cards offer this kind of protection, he told us, and taking advantage of it can make paying a hefty annual fee completely worth it. The same goes for the rental car insurance that some credit cards, like the American Express Platinum, provide their users. 

This insurance is clutch — but what’s not commonly known is that you need to decline the coverage that the rental companies offer you in order for your credit card’s coverage to kick in. “[The car rental agency] is going to sell you really crappy coverage that actually invalidates your credit card [car insurance],” Kelly said. Don’t fall for it.

Staying informed on all the ways your credit card can offer support in unforeseen situations is crucial, especially when you don’t get what you paid for. 

“The value of credit card companies lies in [the ability to] dispute payments,” Kelly explained. So if, for some reason, you don’t receive what you were supposed to, the credit card’s customer service will often reimburse the charges and duke it out with the offender on your behalf.

Another type of insurance that many cardholders are clueless about is purchase protection. 

“If you lose your sunglasses on a booze cruise, most people are like, ’Darn, that’s like 150 bucks I’m never gonna see again,’ but most credit cards — within 90 days — almost any purchase you get, even if you break it, or it gets stolen, they’ll refund it for free,” Kelly revealed. 

He emphasised purchase protection is so valuable, sometimes it’s even worth paying the 2% or 3% processing fee that companies might add to a bill.

“If I rent a villa abroad, they’ll say you can wire [the money] to get the villa or it’s a 2% processing fee [to use my credit card], and I will always pay the 2% because ... I’m getting the protection of [my credit card],” Kelly said. “If you wire money to anyone and they screw you, you’re screwed. You’re screwed! The bank’s gonna be like, ‘Told you so.’ But if you put anything — I mean, even camp for your kid and there’s some issue and your kid can’t go, your credit card company can come in [and help] a lot.” 

Of course we want to avoid paying a processing fee whenever possible, Kelly noted, but often the peace of mind you’re receiving is going to be well worth forking out a bit extra, especially because some credit cards offer up to $50,000 worth of purchase protection per year.

“I cannot stress this enough: I need everyone to know what the purchase protection rules are,” Kelly said, adding that some cards also provide extended warranties that will cover gadgets and other items even after their one-year manufacturer’s warranty expires.

Ultimately, all of these potential protections should be factored into choosing a new card or making better use of your current card. 

We also chatted with The Points Guy about the ideal number of credit cards you should have in your wallet, how to maximise your points for hotel stays and which cards will make you feel like royalty at the airport. 

Listen to the full episode above or wherever you get your podcasts.

Make sure to subscribe to “Am I Doing It Wrong?” on whatever podcast platform you prefer so you don’t miss a single episode, including our investigations of the ins and outs of tipping, how to apologise or vanquish your credit card debt, how to find love online or overcome anxiety, tips for online shopping, taking care of your teeth and pooping like a pro, secrets to booking and staying in a hotel, how to deal with an angry person, cooking tips from celebrity chef Jet Tila, shocking laundry secrets, the tips and tricks for cleaner dishes, getting your best workout and more.

For more from Brian Kelly, visit The Points Guy.

Need some help with something you’ve been doing wrong? Email us at AmIDoingItWrong@HuffPost.com, and we might investigate the topic in an upcoming episode.