Why You Need Credit Insurance and How It Works
Our life is totally unpredictable. You never know what is going to happen tomorrow. So, in order to secure our future to some extent we insure what we value the most. We insure our life, our health, house, cars. Credit insurance as compared to your life and health do not seem to be worth caring for. However, taking into account that most of large purchases you make, involve some type of loan or credit, you can see that credit insurance is a must-have for you. No one can be protected from accidents, job loss, theft, and other bad incidents. Besides, buying a house or a car in about 90% cases involves buying a compulsory insurance.
But since insurance is a pretty expensive pleasure, you are to know every single detail of your insurance contract and understand insurance agents' lingo. Let's start with the basics.
Here are the basic types of credit card insurance: credit life, credit property insurance, credit involuntary unemployment and disability insurance.
Credit life insurance guarantees you to pay off your loan in case of death. The credit disability insurance will cover your monthly credit card charges for a period of time when you will be unable to pay off your balance, but your disability should be medically proved.
The credit involuntary unemployment insurance is just the same as disability insurance with the difference that it covers your credit card payments when you are unemployed. But as a rule, the period when an insurance company makes minimum monthly payments instead of you, is fixed. Usually this period lasts for up to 3 months. This time is enough to find a new job.
So, once you happen to get fired, you should not sit and do nothing, feeling at ease and thinking that your insurance company will take care of all your credit card debts. 3 months will fly by, so, you will need to take actions immediately. Start looking for a new job right away.
The credit property insurance will cancel your debt in case the item you bought is destroyed in some natural disaster like earthquake, flood, tornado, fire, and so on.
Credit insurance is very important, especially for your credit history. Just imagine you got into a car accident, or just seriously fell ill, or got dismissed from your job or any other situation where you will badly need money. You do not have a chance to pay your bills, as medical treatment eats up all your funds (or you just lose a source of revenue). You miss payments, which are reflected in your credit report, your credit score drops, credit history gets damaged.
It is quite clear that your health is above wealth and above your good credit score. But when you get back on track alive and kicking and realize that your credit score allows you to qualify only for bad credit card deals, or even worse, for just secured credit cards, you might be sorry about the credit insurance you could have got, but had decided not to.
So, when buying insurance, make sure that you chose the right one, that you can qualify for it, find out all the details and cases when your insurance cover your credit charges.
Identity theft cases have become as common as dirt. The crisis US economy in at the moment triggers the rise of credit crime rate. Crooks do not even have to invent new more sophisticated ways to steal credit cards or identities themselves. Credit consumers struck by credit market crunch do not think much about protection against thieves now.
But now taking security measures against credit fraud is more important than ever. Say you discovered that you fell victim to identity theft. Do you have an instant action plan? Do you know what to do in order to minimize the grave consequences the fraud can bring about? Credit report freeze is the answer.
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Too much is never enough. Especially when it comes to money. Your income is the cap on the amount of money you can spend. But if you have credit cards, your buying power increases and your spending limits do not bother and restrain you that much. However, nearly every credit card holder would not refuse to have a bigger credit limit.
Even if you carry a no limit plastic, you still have a cap on credit card spendings. Your highest balance is usually considered to be your limit. But can you increase your credit limit? And how will it affect your credit score?
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Credit consumers, who want to highlight their financial standing, can find credit products that will fit their interests. There are the so-called status-credit cards on the market. Customers can choose silver, gold, platinum or black credit cards. All of them give certain privileges and that very status to their owners.
What is interesting, you do not even need to have excellent or good credit and really high income to get one of the status credit cards. They are available to bad credit owners as well. Let's take a closer look at Gold credit cards. Learn more about features, options and services that Gold credit cards offer.
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