Information Center – News and Articles about Credit Cards
Ezpreapproval.com presents the Information Center — a new and improved credit card news service. We will inform you with up-to-date articles on credit cards for good credit, bad or no-credit history. Get information on best credit card deals for student credit cards, cash back credit cards and business credit cards. Learn about the top deals on credit cards with the lowest APR deals and other hot issues.
Credit Card Applications: Credit Protection Insurance
What comes to mind when you think of insurance? Most people think of health insurance and life insurance. But a growing number of people are getting credit protection insurance, also called payment protection. Credit protection insurance is becoming more popular because it is affordable and flexible and is available on the best business credit cards.
Credit protection insurance coverage usually makes the minimum payments (2-3% of the balance) on personal loans, lines of credit and balance transfer credit cards, in case you become unemployed or disabled. In the case of death, your account might be paid off in full.
Credit protection ensures that your minimum payments will be made on your unsecured or secured credit cards in the event that your income is reduced or eliminated completely. If you become unable to work or if you should die, having your credit protected can help keep your disability or death benefits from being consumed by your debts. This will not only give you peace of mind, but your family as well.
How Does Credit Insurance Work?
Financial institutions that are partnered up with insurance companies offer credit Protection. The cost is financed as part of the loan and it is then added to your monthly balance. This will protect your precious credit score.
It is usually sold on each $100 of your account balance. On credit card applications, it is marked as a tool that can protect your credit. Online credit card applications may devote a separate page to explaining the coverage protection offered by credit card insurance.
What Type of Credit Insurance Should You Look For?
There are two main forms of credit insurance: credit disability and credit life insurance. Credit disability insurance makes payments for you so that you are guaranteed not to have a financial loss caused by a loan default if your earnings are interrupted.
It guarantees payment on a variety of debts - auto, personal computer, etc. Credit life insurance will make sure that your family is not burdened with your debt in the event of death. Life insurance can be especially important especially when you are leaving behind secured credit cards. If your family were unable to continue the payments the issuing bank would be within their rights to take possession of the collateral. Why put your family through such an ordeal if you don't have to.
Some Things To Consider When Requesting Credit Insurance
Platinum credit card credit insurance is usually very easy to obtain. In most cases you do not need to pass a physical prior to being covered. It also offers flexibility to buy the exact amount that you need to protect your loans. So you are able to buy a plan in smaller amounts if you wish. Regardless of age, sex or occupation, the coverage costs the same and is offered right on most instant approval credit card applications.
Unfortunately, the best credit card protection coverage is very expensive. There are also limits on how long the insurance will pay and other restrictions. As an example, unemployment cannot be claimed during seasonal work, normal pregnancy/childbirth or elective surgery. You must read the fine print on the back of that Discover credit card application to be aware of the limitations. Don't fall into the same trap that many others have in thinking you are protected no matter what. Proper financial planning means knowing exactly how you are protected.
Is It Right for Me? How do you decide if credit protection is right for you? You must think about your needs based on the amounts that you owe. Look at your current disability plan, and realize the fact that most employers will only pay a fixed percent of your salary for a limited amount of time.
Review your disability plan and find out if it covers your monthly expenses and your monthly debt maintenance payments. If it doesn’t, then you may want to strongly consider credit protection insurance. Keeping yourself from developing a bad credit history should be priority. After reading the verbiage on the application for a credit card consider carefully your situation.
Questions to ask yourself:
- Who will pay your bills if you can’t? Credit insurance ensures that your debts won’t be a financial burden to your dependents.
- Is the loan small enough that you could make your payments without credit insurance? If so then insuring your low interest credit card may not be necessary.
- If you were unable to work due to disability, would it be impossible to make the payments?
- Do you have savings or insurance that would cover your needs? Life insurance should be maintained at about six to seven times the annual salary of a family of four.
Before You Buy. Credit Protection coverage is different from regular insurance and here are some differences:
- No physical exam is required
- It is flexible and you can purchase the exact amount that you need
- You can purchase coverage in small amounts
- You can participate in group coverage
- It is financed as part of the loan and is then added to the monthly balance
- No matter what your age, sex, or occupation is, it will cost the same for everyone
If you decide against credit protection, just be sure to look for an alternative that can provide financial security for your family (and yourself!) in case an unexpected event occurs. If you carry high balances on your Visa credit cards, you should purchase a small amount of term life or term disability.
Even though credit protection insurance might not be the best option for everyone, it should be seriously considered for anyone that carries a loan, whether it be home, auto, credit cards, or personal. This will keep you from ending up with a bad credit history because of circumstances beyond your control.
No comments found
The XXI century is the century of high-speed and nanotechnologies. It seems people strive to speed up all processes to make this already hectic and sometimes chaotic rhythm of life even crazier. They are ready to shrink everything they can lay hands on to make nanotechnologies work. In fact people just want to make their life more convenient.
Contactless credit cards are another product designed to upgrade our life quality through saving customers' time during the checkout process. These new-age credit products are gaining more and more popularity with customers. The so-called wave card makes the checkout process easier and faster. The recent opinion poll proves that contactless plastics won many hearts. According to the survey's result, over 90% of wave cards owners find them to be very convenient and user-friendly. Plus such plastics are accepted nearly everywhere regular credit products are accepted.
The financial economy crisis in the US has been admitted the largest financial shock for America since Great Depression. US banks incur billion-dollar losses. The number of delinquencies keeps rising. Associated Press has announced the results of data processing on 17 trusts dealing with securitization of credit cards.
The results leave much to be desired, to put it mildly. The volume of credit card debt with a delay of 30 or more days has gone up by 26% as compared to October, 2007. Now it makes up $17 billion. It stands for over 4% of credit card debts. The information on card holders debts for Associated Press was provided by Bank of America and Capital One.
We are used to see credit cards the way they look today, and it is hard to imagine that they looked different and served for another purpose than paying for goods and services. We call them plastics. In fact, a century ago credit cards had a different shape, size and were not made of plastic.
The appearance of credit cards dates back to the beginning of the XX century. Who were they created for? The target audience was wealthy people. The cards could be used as business certificates and licenses for the so-called "loyalty programs" at some restaurants, gas stations and merchants. Those cards, you can be surprised, were made of cardboard.
Rapidly growing credit card crime rate causes more and more concern of credit consumers and credit providers as well. Credit card fraud is a number one card holders complaint to Federal Trade Commission. According to the statistics, over 85% of credit card owners that fell victims to credit scam discover the fraud only after they get turned down by credit issuers, having applied for a new credit card or loan.
Credit bureaus cannot stay indifferent to the problem of credit fraud and identity theft, in particular. Equifax, one of the three US major credit bureaus has introduced a new ID theft protection service. "ID Patrol" is a multifunctional tool that allows protecting customers from identity theft.
