This is an oldie but goodie. It’s been around for many years but continues to be a popular choice. However the Citi Platinum Select MasterCard does come with some drawbacks, too. You should review both before making a decision about the promo for 18 month 0% offer on transfers + purchases.

Advantages?

Frequent (and long) 0% promotions

Obviously these things change all the time, but lately Citi has been offering a full 0% for 18 months on both balance transfers and purchases. Not only does this beat the other Citi credit cards, but it’s the best offer you will find anywhere.

Extended Warranty

Very few Platinum MasterCards include this benefit, so it’s nice to see that Citi tosses it in on their Platinum Select.

If you buy something that has a manufacturer’s U.S. warranty of 12 months or less, then you can get coverage for up to double the time for free. For example, if you made an eligible laptop purchase that came with a 12 month warranty, then through CIti with your Platinum Select MasterCard, you would get another 12 months of coverage.

Being that this applies to eligible purchases of up to $10,000, obviously there are exclusions (i.e. doesn’t apply to used items, motorized vehicles, purchases for business, and other exceptions) as well as rules. But even taking those into account, it’s still a darn good benefit considering it’s included for free.

Retail Protection Services

This is another unusual benefit to find on a no annual fee credit card. It provides coverage of up to $1,000 per incident (subject to yearly maximum) for eligible purchases if they are stolen, damaged by fire, or are accidentally broken during the first 90 days.

Like the extended warranty feature, being that this benefit is so generous it does come with rules/restrictions (so review you benefits guide) but even after reviewing them myself, I must say it’s a very attractive benefit.

Virtual Account Numbers

Are you worried about the safety of an online purchase? With the Citi Platinum Select you have the ability to generate virtual account numbers for online, catalog, and phone purchases.

While this probably isn’t needed for legit and reputable businesses like say, Amazon, if you are buying from an unknown independent business or a subscription service, then the benefit of using virtual account numbers is clear.

Travel Accident Insurance (make sure you read)

Not only will you find this benefit on the Platinum Select credit card, but most mid-tier and above cards on the market today. So it’s not exactly rare but just make sure you understand what it means.

With this benefit, you are covered if you buy an eligible plane, bus, or train ticket (a.k.a. “Common Carrier) with the card and there is an accident that happens while you are on that mode of transportation – i.e. not to be Debbie Downer, but dying in a plane crash would be an example.

So obviously this benefit is of very little use to you as long as you are alive. However the death payout would go to your family… so they would be helped by it. This benefit is automatically included on eligible travel purchase and details about coverage amounts/rules will be addressed in your benefits guide.

Free Travel Assistance Hotline

Imagine this… you’re in a foreign country with a medical emergency. You don’t have a clue where to go and English isn’t the native language, which doesn’t make things any easier.

Well if you have the Platinum Select MasterCard from Citi, you can call up a hotline for things like medical and legal referrals, translation help, arranging emergency transportation, assistance dealing with lost baggage, and much more.

This benefit is completely free, however you will have to pay for any costs associated (i.e. the recommendation to a doctor is free, but you will still have to pay the doctor yourself).

Hertz Vehicle Rental Discounts

Do ever rent cars? If so, thanks to Citi’s partnership with Hertz, you will “save on virtually every published rate in the U.S.” according to their website.

Rental Car Coverage

Now this benefit isn’t anything special since most credit cards these days include it but either way, thought I would at least mention it for you.

On eligible rentals paid for with the card, you receive secondary insurance coverage for collisions and theft when you decline the rental co’s collision loss/damage waiver insurance.

Reasonable Credit Score Requirements

In this economy getting approved for a credit card isn’t always easy if you only have average credit. As with any credit card, Citi doesn’t disclose the Platinum Select MasterCard’s credit score requirements. However many on the forum with FICO scores in the higher 600’s have reported getting approved lately.

So if you want a good 0% balance transfer offer, I always recommend this Citi offer since it seems to be more accommodating, versus some of the basic cards from Chase, AmEx, etc.

Disadvantages?

The Rewards – Because this is a card that is geared towards those who carry a balance, as you can probably guess the rewards is not exactly its strongpoint.

It doesn’t give normal cash back or points. Rather it gives Citi “Extra Cash” amounting to 10% of your purchases – i.e. If you spent $1,000 you would have $100 in this Extra Cash.

You redeem it by using the “Extra Cash” to partially offset the price of a purchase for gift cards, travel, etc. There is a cap on each item to how much of it can be paid for with Extra Cash. For example, this Macy’s card allows you to use $10 of rewards towards the purchase:

(this is a typical example)

However on the flip side, if you go with a better rewards card you will probably pay higher interest rates and get a shorter 0% promotion. So basically you are trading good rewards for good financing. If you carry a balance, you shouldn’t care about rewards anyway since the goal is to pay the least amount of interest possible.

Verdict?

When you consider all the benefit and the fact that there is no annual fee, the Citi Platinum Select card is definitely a good deal for those who occasionally or regularly carry a balance.

Even for a rewards junkie like me, the cash back, points, and miles aren’t always the deciding factor in which credit card I use for a given purchase. You also have to take into account the other benefits and the likelihood of using them.

When I’m making an expensive purchase which I think has a higher than normal chance of being lost, stolen or accidentally damage, I prefer not using my credit cards that come with MasterCard Purchase Assurance. While it certainly is better than what Visa offers, it’s not on par with American Express and here’s why…

Reason #1: Burden of proof for stolen items

If you look at the claim form’s rules you will see this part:

When you read this, it basically makes it sound like if you have an item stolen but there is no “evidence of a wrongful act” then the Purchase Assurance program will classify that as a lost item, which is something that’s not covered.

Hmm, if an item is stolen than isn’t the evidence (the stolen item) typically missing, too?! Unless someone busted down your door or smashed a window to steal it, it seems like producing “evidence of a wrongful act” would be difficult, don’t you think?

Contrast that to the American Express Purchase Protection. I called that department to ask if a burden of proof was necessary for their benefit, and they said other than a police report, no additional “evidence of a wrongful act” was necessary.

Reason #2: Those darn vermin!

For some peculiar reason, MasterCard sticks in the following exclusion:

• Damage caused by vermin

When I hear that word I typically just think of rodents, but according to the dictionary definition it encompasses any number of “obnoxious and objectionable” creatures, insects and small animals (wonder if those nippy toy dogs are considered vermin, because they sure are obnoxious).

While in all honesty I think it’s unlikely that something you buy with a credit card will be damaged by these pests during the first 90 days, I can envision many circumstances where it could happen (i.e. bedbugs in the city, small animals ruining outdoor items).

Reason #3: Items lost/damaged in transit

For anyone that shops a lot online, this should be a major concern. When UPS, FedEx, or USPS leaves a package at your door and someone swipes it, it doesn’t appear MasterCard will be picking up the tab:

And as you see above, even damage from shipping isn’t covered. This basically means the benefit is useless for shipping and if you don’t want to risk it, you will be forced to buy delivery insurance when you place your orders. For many this is probably the time they want this benefit the most!

But not all is bad…

Does the purchase assurance from MasterCard have its drawbacks? Absolutely. But at the same time, I should point out that I have heard from many people who shared positive reviews of using it. For example one guy had his computer go bad and after submitting a repair estimate (required by MasterCard) he received a check within two weeks for $800. So it’s still a great benefit to have, as long as you keep the exclusions in mind.

But ultimately, this same benefit (under a different name) through American Express is superior, in my opinion. I have used it myself and have had nothing but pleasant experiences with it. In fact, the last time I used it my Amex Blue credit card had a statement credit for the claim amount within just a matter of 5 or 6 days. Very fast turn around and thus far, I haven’t had to do any haggling to get them to pay up. Another advantage is that you can submit a claim form both online and over the phone.

What are your thoughts? Any experience with MasterCard benefit?

Do you have a MasterCard? Many include extended warranty coverage at no cost to you, but make sure you understand how this benefit works!

American Express was the first to offer an extended warranty benefit and since then, both Visa and MasterCard have started offering it on some of their cards.

It’s typically found on the higher tier cards – like World MasterCard and Visa Signature – but ultimately it’s the issuing bank (Chase, Citi, Capital One, etc) who decides whether or not this benefit is included on a given card. So having a premium tier MasterCard doesn’t necessarily mean you have the extended warranty perk.

The Basics

Only New Items: Only brand new items paid for 100% using your MasterCard can qualify. However the items don’t just have to be for yourself. When it is a gift that you purchased, usually it will still qualify.

Warranties That Qualify: Only purchases which have an original warranty (through manufacturer or U.S. store brand) that is 12 months or less will qualify. If you buy something that comes with a warranty longer than 12 months it won’t be eligible.

Length of Extended Coverage: The MasterCard extended warranty program doubles the original warranty, up to 12 additional months. That means if the manufacturer’s original warranty was for 6 months, the MasterCard coverage would be for 6 additional months.

Amount of Coverage: The cost necessary to repair or replace the affected item. However this cannot exceed the actual purchase price charged to your credit card or $10,000, whichever is less. The benefits administrator decides whether you will be paid to repair or replace the item.

The Exclusions

There are quite a few exclusions you need to be aware of. I will summarize them below, but you should consult your card’s issuer and benefits guide for the rules/details associated with type of each exclusion.

• Acts of God: This encompasses any number of natural disasters, including the more common ones like floods, earthquakes, lightening, tornadoes, and many others.
• Hostilities/War: This category is quite broad. Everything from terrorism to civil commotion is excluded. Also, any damage caused by a government official (like a police officer or customs official) won’t qualify either.
• Normal Wear & Tear: Problems arising from this are not eligible
• Motorized Vehicles: Cars, boats, aircrafts, motorcycles and any other motorized vehicle you can think of is excluded.
• Software: Application programs, operating software, etc.
• Trip, Service, Diagnostic Charges: Not covered in the absence of any covered repairs or verified failure.
• Media/Data Storage: It says “all types of media with stored data or music” so that would consist of things like DVDs, film, flash drives, and so forth.
• Living/Perishable Items: From plants to pets, as well as things that can expire, such as food.
• Improper Maintenance/Service: If you didn’t maintain or service something properly and it causes a mechanical failure, it won’t be covered.
• Product Recalls: If this is the reason for the damage, you won’t be covered.
• Business Purposes: If the item was “purchased for resale, professional, or commercial use” it is excluded. This is a very important one to emphasize, because while many of the other exclusions are quite obvious, any item bought for “professional” use is an exclusion most people probably wouldn’t expect. So if you run a business, remember this!
• Antiques/Collectibles: This is to be expected, but keep in mind that this category also excludes anything used, refurbished, recycled, etc.
• Product/Satisfaction Guarantees: If there is a product/satisfaction guarantee it won’t be covered. So those late-night infomercials with the too-good-to-be-true guarantees definitely are not be covered!
• Covered Losses: No coverage for direct or indirect damages from a loss that is covered.
• Floor Models: If it doesn’t come with the original manucturer’s warranty, then it won’t be eligible. However the fine print doesn’t say anything about floor models with the original warranty being excluded, but double-check with your card issuer to confirm.
• Real Estate: Buildings, land, as well as permanently installed items found at these places such as doors, faucets, etc.
• Power Surges: excluded
• Contamination: This could be damage or contamination from mold or hazardous substances
• Professional Services: Regardless of what the service is, it’s excluded
• Delivery: Under no circumstances will shipping/transportation costs be covered

How to file?

In order to file a MasterCard extended warranty claim you can call MasterCard at 1-800-MC-ASSIST or the customer support phone number on the back of your credit card. You must do so within 30 days form when the problem happened.

After you do that you may be asked to send in all of the following:

• Claim form, signed and completed
• MasterCard receipt which proves you bought it using your eligible MasterCard
• The credit card statement which also shows you bought the item
• Itemized purchase receipt
• The documentation for the original manufacturer’s (or U.S. store brand) warranty. If there was a service contract/extended warranty you purchased, send that too.
• Repair estimate which is obtained from a factory authorized service provider. I would imagine this may be difficult to fulfill, since not every product has “authorized” service providers associated with it. However when that’s the case, it sounds like MasterCard probably will make exceptions (judging by experiences reported on forum).
• There may be additional documentation requested at the discretion of MasterCard

Thoughts?

MasterCard’s program for the Extended Warranty is a good benefit considering it’s free. However the similar program from American Express is also free, but in my opinion it is superior since the duration of coverage can be longer and from my personal experience, the paperwork required to file a claim isn’t as cumbersome. For comparison purposes, go here: AmEx Extended Warranty Program

Disclaimer: Please note that everything above is only meant to provide you with a general summary of the MasterCard extended warranty protection program. For details, rules, exclusions, and limitations you need to contact MasterCard or your card issuer directly. Please note the above information cannot be guaranteed accurate. It was written in August 2011 and is subject to change without notice.

What’s your credit like… Excellent? Average? Or could is use some help? The nice thing about Capital One® is that they have different credit cards, custom-tailored to different levels of credit.

So who should apply for a Capital One Platinum MasterCard? And who should submit an application for one of their other cards instead? This review will walk you through the pros and cons.

These 3 MasterCards are in the Platinum tier. Here’s a quick overview of each:

Capital One® Platinum

• Annual Fee: $19 normally, but it’s $0 for your first year
• Interest Rate: 24.9% variable for purchases and transfers
• Credit Requirements: Average
• Honest Feedback: If your credit isn’t the best, but it’s not downright bad, then this is a good choice because you will be getting platinum-tier benefits with a very reasonable annual fee. The downside is that the APR is higher, but that’s because it’s geared towards “average” credit instead of “excellent.”
• Go here to learn more

Capital One® Classic Platinum

• Annual Fee: $39
• Interest Rate: 17.9% to 22.9% variable for purchases and transfers
• Credit Requirements: Average
• Honest Feedback: Being that they’re both for average credit scores, you may be wondering why this Platinum MasterCard is more than the one above? Well for starters, the APR range for this one is lower. Secondly, with this card you get a promotional rate of 0% on all purchases until March 2013. So if you will be carrying a balance, the Classic Platinum might be a better fit.
• Go here to learn more

Capital One® Platinum Prestige

• Annual Fee: $0
• Interest Rate: 10.9% to 18.9% variable for purchase and transfers
• Credit Requirements: Excellent
• Honest Feedback: If you have excellent credit and carry a balance, this is a straightforward choice. The APR range is definitely on the low end when you compare it to most reward cards (which usually come with higher rates). Last but not least, you get 0% on both purchases and balance transfers until September 2013.
• Go here to learn more

So that’s a brief review of each offer, but let’s get into the nitty-gritty about their advantages – and possible disadvantages – that you should consider.

The Advantages

• No Foreign Transaction Fee: Almost every credit card co. slaps on a nasty fee for foreign transactions (usually a 2-3% surcharge). What’s unique about Capital One is that their cards don’t charge this. In fact, they are the only issuer which doesn’t charge a foreign transaction fee on any of their cards. To put this in perspective, even the $450 American Express Platinum Card charges this fee, so the ability to get a free or low cost card without it is rare.

• Extended Warranty Program: For eligible purchases that come with an original manufacturer’s (or U.S. store brand) warranty, this benefit will mirror that coverage for the same amount of time, up to 1 extra year. So let’s say you used your Capital One Platinum card to make a qualifying purchase that had a 6 month warranty. Through this extended warranty program, you would have an additional 6 months of coverage. When your card arrives make sure you read the benefits guide that comes with it, so you understand the rules surrounding this program.

• Reasonable Annual Fee (When Applicable): If you go with the standard Platinum or Classic Platinum, you don’t have to worry about busting the bank just to pay for your card. $19 and $39 is reasonable when you compare it to some other cards out there for average credit scores.

• MasterRental Insurance: This is MasterCard’s vehicle rental insurance program. Coverage for accidental damage and vehicle theft is provided on eligible rentals of 15 consecutive days or less which are fully paid for using your Platinum MasterCard. To use this benefit, you will have to decline the collision damage waiver from the rental company.

• Automatic Travel Accident Insurance: This applies during licensed common carrier travel (such as being a passenger on an airline) if you paid for the full cost using your Capital One Platinum credit card. MasterCard’s insurance provider offers up to $100,000 in coverage in the event of a travel accident which causes loss of life, limb, hearing, sight, or speech while riding as a passenger.

The Potential Disadvantages

• No Rewards Program: Perhaps the most notable drawback is that these Capital One Platinum MasterCards do not offer a rewards program. While that may seem like a bad trait, it’s actually not when you consider (1) who these cards are built for, and (1) the low rates on the Platinum Prestige. Simply put, these are not aimed at the reward chasers with excellent credit who never carry a balance – if that describes you, then check out the Venture card.

• Platinum & Classic Platinum APRs: The rate on the standard Platinum is on the high side. The Classic Platinum is a bit lower but still up there. Though given these are for average credit, it’s understandable. Of course, if you never carry a balance, then you won’t have to worry anyway.

• Bad Credit Probably Won’t Qualify: If you have poor credit and are looking to rebuild, then you might need to start with a secured card instead.

Find out more

• Capital One Platinum (for average credit, $19 annual fee is waived for the first year)
• Capital One Classic Platinum (for average credit, $39 annual fee, 0% on purchases until March 2013)
• Capital One Platinum Prestige (for excellent credit, no annual fee, 0% on purchases and balance transfers until September 2013)

Q: The “Zero Liability” MasterCard protection means what exactly? I hear it advertised all the time but is there any fine print that comes along with it?

A: To be perfectly honest with you, the “zero liability” commercials are largely a marketing gimmick. Truth be told, federal law caps your personal liability for fraud at $50 anyway. Almost every major credit card in the U.S. will absorb that $50 deductible for you, so what you end up with is practically all major and reputable credit cards (not just MasterCard) offering $0 liability for fraud.

But there is some fine print…

The MasterCard zero liability policy does list some stipulations in the fine print that you should be aware of:

• You have protected your account with “reasonable care”
• During the preceding 12 months you have not had 2 or more unauthorized events
• Your account must be in good standing, so if you are delinquent and behind on payments don’t count be on being covered with 100% zero liability.

But even with these stipulations, remember the federal law which limits your liability to $50. Also, I have heard of people having 2 or more occurrences within a year and they were protected 100% for all of them, so even though that aspect is mentioned in the fine print, I doubt it is always enforced.

Using a debit card? Then read this!

If you think a MasterCard debit card (or any debit card for that matter) is given the same protections as a credit card, then think again. Payments can be processed two different ways:

Debit Transactions: These are the transactions where you have to enter your PIN.
Credit Transactions: These are transactions where you swipe and sign, WITHOUT entering your PIN.

The MasterCard debit zero liability policy only applies to credit transactions. So if you use your debit card and have to enter your PIN then you are not covered under this policy. In fact, the legal protections for PIN-based fraud are few and far between. So keep this in mind if you use a debit card for purchases!