Whether you are planning to upgrade your appliance or have to buy a new one because the old one is no longer functional, use a credit card to get a free extended warranty.
Even if you don’t like to pay interest on your credit cards and typically pay cash for everything, it’s still worth buying the appliance with a credit card to get an extended warranty. You can always pay off the balance of your credit card within the month and keep the warranty extension.
Nowadays, appliances don’t last as long as they used to. Especially icemakers on refrigerators seem to break down right after your 1-year manufacturer’s warranty expires. Therefore, having an extended warranty is a must. Instead of paying an average of $126 for the warranty, you can get it for FREE through VISA, Mastercard, AmEx, or Capital One cards.
So what is the best credit card extended warranty?
The Citi Bank used to have the best ( the longest) extended warranty. However, in 2020, the bank has slashed most of the benefits, including the warranty. Nevertheless, you can still get a generous 2-year warranty extension on your appliances, TVs, and other electronics through a Citi Card from Costco warehouse.
Costco Anywhere Visa Card by Citi
If you already have the membership, but don’t have the Costco Anywhere Visa Card, consider applying for it to get the warranty and other cashback rewards such as:
- 4% on gas
- 3% on restaurants and travel
- 2% on everything from Costco (including appliances)
- 1% everywhere else
This is a really good deal considering that you get the 2-year free warranty and the 2% cashback on your new appliance!
Wells Fargo PROPEL
But obviously, not everybody lives near or wants to be a Costco member. In this case, the easy to find Wells Fargo Bank offers the PROPEL card by American Express. If you already have this card, definitely use it.
And If you apply for the PROPEL card, new members get some nice perks on top of 1 year extended warranty, like:
- 20,000 bonus points (equal to $200)
- 3x points on restaurants, travel, gas, rideshares… etc
- 1x points on everything else
- Phone protection
- NO annual fee
- NO interest for the first 12 months
- Plus many more…
Chase Freedom Unlimited & CapitalOne
The Chase Freedom Unlimited and the Quicksilver by CapitalOne cards offer a 1 year extended warranty, plus other very similar benefits such as:
- 1.5% cashback on purchases
- $200 cash sign up bonus
- 15 months no interest
- and NO annual fee for well-qualified applicants
American Express Gold
The American Express Gold Card also gives you a 1-year extended warranty, but the card has an annual fee of $250. If you are a heavy spender on a monthly basis, the annual fee will be reimbursed back to you in form of:
- 60,000 Membership Points (currently)
- $120 Dining Credits
- $100 Hotel Credits
- 4x points on supermarkets and restaurants
- 3x on travel
- 1x points on other purchases
Unfortunately, the popular Discover It Card has canceled the extended warranty service, so it can’t be recommended at this time for purchasing appliances.
Bottom line.
The Costco Anywhere Visa Card currently is the best-extended warranty credit card. But since most people don’t have a Costco membership, the second best will be any of the mentioned cards above. If you already have one of them, use it. If not, consider applying for it… it’s worth it.