06:05:25 AM Thursday, May 01, 2008
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.
July 08, 2008
The Federal Reserve recently proposed to take measures in order to eliminate unfair credit card practices performed by credit card companies and banks. The Fed also suggested toughening rules and regulations for lenders. Hidden credit card fees, unreasonable interest rate hikes, unfair charges, aggressive anti-delinquency policy and other abusive credit card practices are promised to be banned.
This would definitely bring a relief to credit card holders. But how will creditors tolerate such a policy? Banks and credit companies still trying to make up for the losses caused by credit crisis and trying to survive in the conditions of economic recession, are upset with such Fed's moves, to put it mildly. But whose prayers - lender' or borrowers' - will be heard by the Fed?
View full story Comments (0)
June 17, 2008
Nothing is certain but death and taxes. This proverb is pretty old and very popular in America. And it is a rather questionable issue - what Americans hate more. Tax time can, probably, be called an antipode to Christmas time so much loved by Americans. It is really unpleasant to give your honest penny earned. It feels like you are being robbed.
Of course, we realize that the tax money goes to good causes. But still it is not easy to give a part of your income with a smile on your face thinking of some nice park-to-be or a smooth new future highway. But now you can get rewarded for paying taxes. You can apply for a credit card with rewards for paying taxes, gilding the pill thus.
View full story Comments (0)
June 06, 2008
Do you know much about Australia? Canberra is its capital. Kylie Minogue, Cate Blanchett, Hugh Jackman, Steve Irwin are the most world-wide famous people born in Australia. Sydney Opera House and Sydney Harbor Bridge are among the most distinctive and beautiful architecture masterpieces of the XXth century. Aussies (informal for Australians) speak English, Australian-English, to be more exact. But did you know that Australia has a highly developed credit card industry? And that Australian overall credit card debt is lower than the one America has?
View full story Comments (0)
