Credit Card Protection

When I get a new credit card, I'm usually dunned by salesmen on buying credit protection, free for 30 days, etc. What is the advantage and disadvantage of this? Isn't this already provided for in the credit card agreement?

The protection insurance is simply a huge moneymaker for the banks. You're paying them to pay themselves if you lose your job and can't pay them yourself. Amazing concept. And they completely overcharge you for it too.

Never take it.

2007-02-26 18:58:07 by ,

Is it a good idea or unnecessary? I have credit protection on all my cards and I'm spending good money for it. But I'm betting that if I lost my job they would make me jump through hoops to get them to honor the protection while I was unemployed. Anybody out there experience this?

It is not a wise investment, but is a great profit center for the bank and insurance company. The odds of collecting are relatively nil. They pay the full amount of your balance if you die and the minimum payments for up to a year depending on your age and regulations of the state in which you reside if you lose your job and meet their restrictions.

A better option would be to get cheap term life insurance privately or through work if you are supporting a family, save the premiums in a high interest money market or savings account or use the funds to pay down the cards and relax.

2007-06-06 10:29:56 by Leti

Price: $21.99 $21.99

I have Chase Amazon Rewards credit card. I’ve always wondered this, though it never bothered me because I almost always pay off my credit card balance before the statement period. If I don’t, Chase adds a credit/ payment protection fee. The fee depends on how big my balance is. A few days ago, when my monthly statement was issued, I had a balance of $12.61. Along with that was a $0.11 protection fee. However, I paid it off that same day and now I see that the fee was reversed. I now have a $0.11 credit. What is this protection fee?

They might have mistakenly (or on purpose!) enrolled you in a program where your credit card payments are waived or forgiven if you are out of work, disabled, and certain life events like having a baby. These are basically credit insurance policies, but they are way too expensive. They charge 89 cents per $100 of balance you carry on your card (so in your case $12.61 x 0.0089 = $0.11). It's not much on your small balance, but if you owed $6,000, it would be $53.40 a month (ouch!)

I would call them up and make sure you are not enrolled in any protection programs and get a cancellation confirmation number if you are.

I had one added to one of my accounts once, by one of the representatives at the cc company's call center, and it worked out for me, because I got married that month and it was one of the covered life events, so they paid my payment that month. But, that was pure coincidence. Most of the times these polices are a ripoff and you are much better off buying term life insurance and good disability insurance to protect your income if you cannot work.

2009-08-18 11:15:52 by Matt

Alerts you to retrieve your credit card with a series of flashing lights and beeps.
Never leave your credit card again!
Small enough to fit in wallets, purses or pockets.

I am currently very good at paying my credit cards and i am not sure if this insurance is worth it or not. I am currently paying .82 cents per one hundred dollars for one of my current protection plans. And about $5 a month for another credit card protection plans. Is this insurance a waste of money? Or is this something that is beneficial in the long run?

absolutely, positively NOT. My experience has been that when it comes right down to it, they find a way to weasle out of it. Ive fallen for it twice with 2 differrent cards and was comlpetely unable to use it both times. What a joke. AND when I tried to cancel it, it took me 9 months before anything happened and that was after calling them every month and being ASSURED that it would be canceled, it didnt happen.
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Dont fall for it

2007-08-24 07:25:32 by Gamergrl

For $11.00 a credit card sells credit card protection against fraud and also it provides your credit reports monthly is it worth it?

Your credit card is supposed to protect you against fraud already. You need to watch your statements and if you see charges you didn't make, call the credit card company and report the fraudulent charges. You do not need to buy credit protection to receive that service. The credit protection thing is a scam that credit card companies use to try to rake in more money.

As far as credit reports go, you can get those for free online at websites like www.freecreditreport.com .

Don't waste your money.

2007-07-10 10:13:19 by jmarasco58