Which credit cards offer extended warranties?

I've heard that some credit cards offer an extended warranty on electrical appliances - is that true?

Yes, that's right. Some credit cards offer an extended warranty on electrical goods if the item is purchased using that card.

However, be aware there are exceptions to this deal, such as which particular electricals are covered and how many products can be covered each year.

Extended warranties: the basics

Although most electrical goods come with a free year-long warranty, there are times when people might want an extended warranty that will protect their product once the 12 months are up.

An extended warranty adds extra time to which the working order of a product is the retailer's responsibility so you don't have to buy a new washing machine or TV if it suddenly breaks while it's still fairly new. In some cases the cover will also include accidental damage and theft.

The big drawback is that extended warranties can be very costly and in some cases aren't even necessary.

Sometimes, for example, an extended warranty can cost up to 50% of the purchase price of the product itself. Shop assistants often try to sell expensive extended warranties to protect new electricals for a few extra years - be aware that the store will often be getting commission from this sale. Therefore, buying a warranty in store is not necessarily the best option.

Additionally, sometimes in the case of accidental damage and theft, goods may be covered as part of a home contents insurance policy in any case.

This is why it is sometimes worth looking for alternative ways to get extra cover without extra costs, such as getting a credit card that includes extended warranties for electrical products.

If cardholders play it carefully this could save some cash.

Credit cards that cover electrical goods

Unfortunately, credit cards that offer an extended warranty are bit of a dying breed.

We've managed to track down a couple of cards that still do, the UlsterBank Gold card offers a free extended warranty, as does HSBC's Premier credit card .

Some older Nationwide credit cards offered a year's free cover in addition to the manufacturer's warranty on items between £50 and £5,000 but new applicants should note that this doesn't apply to the newer credit card deals.

Internet bank Egg has also offered the deals in the past.

As always, it's best to check paperwork carefully before assuming that goods are covered and certainly before applying for a credit card just because it offers extra protection on certain goods.

Exclusions and precautions

Assuming they've tracked down a credit card with an extended warranty, there are a few things cardholders can to do to make sure they don't get caught out when using a credit card to cover electricals.

Firstly, cardholders need to actually buy the item on the credit card to be covered by the warranty.

They must also make sure that they register the product within a certain time frame. For example, cards in the past have asked customers to register their product within 90 days of purchase.

Second, check out the exclusions section of the credit card's extended warranty conditions to make sure that the item is included: items such as mobile phones and computers are commonly excluded. Also, bear in mind that, just as with many insurance policies, there's a limit to the amount of products that can be claimed on the card each year.

Finally, cardholders should make sure that they reduce excess costs by clearing the balance in full by the due date.

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