Tuesday, April 7, 2009

Credit Card Protection

It was my 2nd credit card when I signed up my Kohls credit card last year. The cashier told me that I will have 10% off on the product that I purchased that day when I open and got approved with kohls credit card. So, I tried and I was approved. He then told me to enroll in the card's payment protection plan with no charge until 1yr. So, if I lost my job, became hospitalized or disabled and divorced, they would cancel my monthly minimum payment. But I could cancel the protection plan anytime I want. A year has pass, the protection plan appear on my bill. It was a little bit more than the finance charge. And it's the same amount for my minimum payment of the month if added to finance charge. But , after all I forgot that I enrolled the credit protection plan. Because I was wondering what's the extra charged that appear on my bill, I called the customer service and she told me about the plan that I signed up a year ago. So I told her right then that I want to cancel the protection plan. And she did.

I learned that people who need payment protection the most are those who can afford it the least.You could be paying hundreds of dollars a year on a plan that, hopefully, you may not even use. There's no guarantee that you'll qualify, and if you do, you may have to jump through hoops for the company to honor its plan. Payment protection plans are basically marketed as insurance policies.

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