Whenever you're planning on buying a new electronic device or appliance, you should leave your bank card sitting inside your wallet. You should buy electronics with your credit card, instead. Why is that? 

A Basic Manufacturer's Warranty

Any electronic product that you buy will come with a manufacturer's warranty. A manufacturer's warranty will grant the user coverage for repairs or replacements that are a result of manufacturing defects. This warranty will only last for a certain amount of time. After that warranty expires, the user will be financially responsible for repairs and replacements- even if the reason for the repairs and replacements are related to a manufacturing defect. 

A basic manufacturer's warranty will not help with any issues that are considered the fault of the user. If you need to get an electronic repair or replacement because of accidental damage, like spilling water on a laptop, you will not get any coverage. You will have to pay to resolve the issue on your own. 

How Using a Credit Card Can Help

You should use a credit card to purchase an electronic item because it can increase the manufacturer warranty's coverage. That's right - one of the many benefits that credit cards offer is extended warranties. The benefit will extend the coverage timeline, typically giving the user an additional year of protection for the item purchased. 

Credit Card Extended Warranty vs. Extended Warranty Plan

The extended warranty provided as a credit card benefit is not the same as an extended warranty plan provided by a retailer. 

The credit card benefit simply increases the timeline of the original manufacturer's warranty for an item. A retailer's extended warranty plan may offer other protections, like coverage for accidental damage, theft and loss. For instance, the tech giant Apple offers an Apple Care+ extended warranty plan for its various devices. 

Another difference between these two types of warranties is payment. The protection from your credit card is free. All you have to do is purchase the item with your credit card. There are no extra costs associated with the benefit.

On the other hand, a retailer's extended warranty plan is usually a subscription that you will have to sign up for and pay into. It will not be a free benefit that you receive after purchase. 

Paying for Emergency Repairs 

A credit card's extended warranty could potentially save you a lot of money in essential repairs and replacements. Without this extension, you might encounter a tech problem after the original warranty expires and have to foot the repair bill all on your own. Depending on the type of electronic you buy, this emergency could cost you hundreds of dollars out of pocket. A little bit of foresight could save you from that financial loss. 

What if you forgot to use this credit card benefit? Well, if you don't have enough savings to cover an emergency repair, you could use your credit card to help you. Charge the surprise expense to your card and then pay down your balance later. That way, you can get the repair covered as soon as possible. 

If you don't want to use your credit card, there is another borrowing solution that you can turn to: an online personal loan. With an approved personal loan, you can use temporary funds to pay for the urgent repair in a short amount of time. Then, you can follow a steady repayment plan once the repair is done and your device is back to normal. 

Does this option sound appealing? Find out exactly what the eligibility requirements are and what is on an application right now. This information will prepare you for the application process when you're dealing with an emergency. 

Don't buy any electronics without your credit card! You will want the extra protection that it provides.