Why You Should Think Twice Before Applying For Payment Protection Plans
Filed Under (Credit Cards Blog) by creditblogger on 12-09-2008
If you have applied for a credit card recently, you have probably seen that credit card companies try to sign you up for their payment protection plan which is supposed to protect you in tough times. A lot of people actually take the bait and sign up for credit cards and think they are protected in hard times. But what credit card companies won’t tell you is how you can pay them their monthly fees and still not get the protection that you are promised. Times Online had a great story how credit card representatives may lure you into applying for a card by using the payment protection program as a bait.
The truth of the matter is, credit card companies are out there to make a profit. While they do care about providing the best experience to customers, they don’t necessarily blink twice before charging you late fees and nullifying your payment protection plan. What consumers need to do is read the fine print of the credit card agreements. I have personally never signed up for the payment insurance program, and I find it to be not so useful. But many feel that they can sleep better if they are protected. If you can afford such payment plan, you are more than welcome to explore it, but don’t forget to find out what the limits are. Feeling unprotected can be distressful, but perhaps it is worse when you feel you are protected when you are not. In these tough times, there is no excuse for not being diligent enough when it comes to dealing with credit card companies.
