It does not take an Einstein to realize that the perils of neglecting to read the small print of a contract can be extremely detrimental to your finances, but what about the hidden benefits of credit agreements? Provided below is a summary of the numerous perks that can be found in the terms and conditions of credit cards.

Travel insurance is a type of indemnity that every person should consider when planning a vacation, but is it always necessary? Many credit cards provide a form of cover for travellers.

Although not as comprehensive as standard insurance policies, at least not in most cases, many credit cards make provisions for travellers who have suffered death, injury or illness, at home or abroad.

Credit card travel insurance usually kicks in when a person is forced to cancel his vacation for one of the above reasons.

While travel companies (airlines, rail operators, bus firms, etc.) are likely to charge for cancellations, the traveller can often apply to his credit card company for a full or partial refund (the limits for this are specified in the terms and conditions of a credit agreement).

Aside from travel insurance, most, if not all, cards offer a form of sales insurance. Problems sometimes arise when people buy goods online or in retail stores, but the financial consequences of such problems need not be a concern.

If a merchant has failed to deliver the correct goods, if items are damaged in transit, or if there is some other problem pertaining to the contract of sale, credit card companies can be relied on to investigate and resolve a claim, which could mean the buyer receives a full refund.

It is undeniably the case that warranties are important for ensuring the longevity of certain types of product, especially electrical equipment such as personal computers and domestic appliances.

Some warranties, however, are not worth the paper they are written on – not least because many credit cards offer extended warranties on most purchases.

Sometimes offering an additional year of protection, the extended warranties provided by credit cards exceed those offered by manufacturers.

In the event of a product experiencing a fault after the manufacturer’s warranty has expired, the credit card company might step in to pay for a repair or replacement.

Extended warranties provided by credit card companies usually double the manufacturer’s warranty up to one year, which is especially useful for big purchases such as televisions and personal computers.

Car rental firms often push collision or loss damage waivers on to customers. Providing cover in the event of a rental car being lost, damaged or stolen, there is nothing wrong with the collision damage waiver – except that it is sometimes unnecessary.

Many cards offer a form of collision insurance, so car rental customers ought to ensure that they charge hire vehicles to their cards, thereby allowing them to decline the collision damage waiver.

As always, it is important to check the terms and conditions thoroughly because most credit agreements exclude certain types of vehicle, driver, destination and so on.

Finally, a credit card agreement might also make provisions for product returns in the event that a merchant refuses to accept a returned item. A complete list of perks can be provided by a credit card company – and cardholders should always remember to read the small print!

Have you ever lost out through a clause in the small print that you didn’t realise was there? Let us know in the comments section.

Author Bio: Robert Fox is a freelance writer, author, and editor for money-fox.com, a personal finance blog geared to making your money go further.