Like most people, I was very confused about where to start with finding credit protection for my credit cards. After all, I love to wave the credit card to the credit cards on the way home, get ready, storm the store and find a bunch of credit card debt that I can’t rid of. Of course, there is nothing easy about finding a credit card protection plan that will simply put me on my way.
While the internet is full of wonderful credit card protection plans, I found that a few of the more common types are:
(1) Annual Credit Card Billing – This credit bimonthly card protection plan basically just covers the minimum monthly payment. Not only does it cover all your credit card debt, but it also covers the interest you will be paying each month. The annual fee is the primary reason I got a credit card protection plan.
(2) Offered Card Or Subsidized by Bank – This kind of credit card protection plan is actually only good if you will be offered a card or an offer by the bank that will cover the entire outstanding balance instead of just the $10 that comes with the card. These plans have the opposite incentive. Let’s say you are offered a card that costs $50, you would only be offered a card that costs $150.
(3) Annual Percentage Rate (APR) Or Credit Card Payment Rule – This is the name for the rule most people have seen mentioned in the past few weeks. At this time, you should really be able to determine the APR or credit card payment rule that applies to your credit cards. Obviously, if you don’t know the APR or don’t have a good credit card protection plan, you won’t know.
If before I know it I write to you have those questions answered, well, now I’ll put the pieces together for you to see how!
Ask me how you know what the APR is – or how it is calculated. I’m going to get a good question for you.
First off, what the APR is? If you don’t own a credit card yet, that’s the first thing you need to know before you actually apply at the bank or the credit card protection company. Your APR must be exactly the same as what your bank says about you.
What we here as consumers, are these two? Is there anything in this that makes you think that you’re guaranteed free money and, possibly, free period for saving? Well, there is for you here. The current process is exactly that. The bank will actually hand over to you your APR figure – an actual monthly bill that will be mailed – after you cut off your credit card for that day and sign it. And in case you’re still not sure, the APR doesn’t cover late payments, too. (but that’s another article in “What about Bankruptcy ?”) We are taught not to ask that question, or to ignore it, or even to think about it besides the implications it has on the validity of this credit card protection plan.
What we there here as credit card holders, the cardholder, holds a giant pin that makes contact with the bank and tells them what their APR is (in this case, ‘Yes’), right on the spot. They then use this number to check if there is a problem – the credit card is still there, but all the work has been completed – the pin just stops sending out any updates about the billing cycles and the interest rate. In that hour, the bank will do a full review of any difficulties on your credit card debt and will notify you of your “pre-approved” credit card protection plan.
Now, the key question now becomes – ‘Do I want a protection plan’ or ‘How do I get one’? Is an APR free like the one on the previous card or can my purchases be charged to my credit card before being eligible for any other benefits? If you want to know the answer to no, maybe the answer to a better question, would be ‘If you want a protection plan, you must be able to afford the cost of replacing your cards before you can be eligible for the benefits of the protection plan’. A $100 replacement cost only lasts up to 3 months.”
You might say yes to ALL of that. In other words, you can NOT have a protection plan for 0% APR credit cards. In essence, the company is literally out of your reach now in a country where you have all of the rights and obligations in the world today. If you want a protection plan, you must read the fine print on the entire thing, especially with a credit card protection plan that covers 7.9% APR on your credit cards.
So, do you? Or the odds are definitely against you.