Do I need a credit card protection plan?
Wednesday, March 3rd, 2010 at
4:31 am
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?
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probably. i think the cc companies already have a safe guard in place. and if your cc does not, find one that does, they are just taking your money for something people get free
If you dont think you will ever be able to make the minimum payment then take the insurance. I wouldnt advise it though, just another way for credit card companies to make money.
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
This is a UK response so I will state only the commonalities.
Simple facts,most people will get nothing from card protection as they generally only give protection in cases of employment change due to loss of job including uinability to work due to health, and then for a limited time stipulated in the policy. You will only get your payments paid for, not the capital, so you will still have troubles. If your policy is different I am sorry, but that is what I have seen in many US complaints too.
In return for answers to my queries, 97% of all money paid into these are retained in the UK. The rate you quotes are high too.in the UK if you are paying at the rates stated and kept a alance on the cards you could easily, if you are healthy and reasonably young, get health protection that guarantees 60% plus of your full income being paid and redundancy cover.
The effects on the overall economy of this waste depends on your economic philosophy, my feeling is it is a drag on having a healthy economy, loading debt on people who are therefore more liekly to default, creating instability in the overall economy.
If all that it does is to protect you against the misuse/theft of your card, NO. Under the Federal Truth In Lending Act, your liability for the theft of the card is limited to $50.oo. If you notify the card company before any charges are run up, then your liability is limited to $0. So if someone steals your card and runs up $1000 in clothing bills on it, your maximum liability is $50.00. So what do you need more insurance for?