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.
May 08, 2008
You can find numerous credit card articles that throw light upon such issues as credit card fees and rates, rewards programs, tips on eliminating debts, improving credit score and wise credit card management. But have you come across much information on convenience checks tied to your credit card account?
Meanwhile, these checks are hidden hefty charges that you are imposed right after you cash them. Convenience checks might seem to be very convenient at first sight. But if you take a closer look, you will find a good number of downsides to using convenience checks. This easy money can turn into a heavy financial problem for you.
View full story Comments (0)
April 18, 2008
Sometimes credit card issuers surprise me. They issue plastic money, talk about numerous advantages and conveniences of using credit cards, aggressively advertise credit products on every corner. But together with that, nearly every credit card deal has a cash advance option. This contradicts the conception of plastic money.
To talk seriously, it is pretty clear why card issuers offer such an option to their customers. People still do need cash at times. Of course, these days, plastics are accepted almost everywhere. But imagine your credit card with credit available does not get accepted. What would you do? Right, you would want to take a cash advance.
View full story Comments (1)
April 04, 2008
While some people make promises to themselves to start a new life with the beginning of a New Year or next Monday, others choose spring to start afresh. Spring is the time for a spring cleaning, lose some lbs people gain during winter. Spring is also great for losing excess weight in your financial matters. If you have some credit card debts, get rid of them before the summer is here.
On cold and dull winter days your credit could frown as well. Christmas debt hangover, some new warm outfits for you and your family members, vitamins to keep up your immunity, and other extra winter expenses can increase your credit card bills and your balances.
View full story Comments (1)
