Credit Card Payment Insurance, useful or waste of money?

Discussion in 'Archived Threads 2001-2004' started by Martin Fontaine, Dec 12, 2002.

  1. Martin Fontaine

    Martin Fontaine Supporting Actor

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    On my Visa card for a long time I had an insurance thing that cost me a lot (Basically doubling the interest charges) so that if I lose my job, get sick or something terrible like this, they would make payments for me or something. After many years of this, I came to the conclusion that it was a waste of money and cancelled it.

    I recently got a MasterCard (Yeah I know, having 2 credit cards is a bad idea, but sometimes you just have to, Argh!) and they talked me into signing up to a similar deal. But I cancelled right away knowing that it was a waste of money.

    I'd like to know, anyone here use one of those on their credit card? Is it at all useful or does that just make paying off the debt harder with no real benefit? If I lose my job, I'd just make the minimum payment instead of making bigger payments than asked for to hopefully reduce the balance quicker than I can buy things so I would not be too worried. But I just want to know what others have experienced so far.
     
  2. Leila Dougan

    Leila Dougan Screenwriter

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    I personally think it's a waste of money. If you think about it, if there was a real benefit they wouldn't offer it since they wouldn't make as much money.

    For the insurance I turned down, they wouldn't actually make payments for you, they'd just "freeze" your account so that you don't acrue interest but I believe you can't use the card anymore either.

    Also, I would also just make the minimum payments. If you carry little to no balance, making the $10 minimum shouldn't be too difficult.
     
  3. Todd Hochard

    Todd Hochard Cinematographer

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    Unless you have a habit of frequently losing your job, it's a waste of money, especially considering that it was
     
  4. MikeAlletto

    MikeAlletto Cinematographer

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    I think its a waste. If you are careful and only buy what you definitely can afford then you won't have a problem. I try and keep in savings enough money to live at my current lifestyle for about 9 months to a year in case I lose my job also. Came in handy earlier this year, but I was only out of work for about 3 months.
     
  5. SteveA

    SteveA Supporting Actor

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    Those plans are offered mainly to protect the creditor, not you.
     
  6. Woo Jae

    Woo Jae Screenwriter

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    Gotta get rid of it on one of my cards... ARGGH.... Anime is NOT cheap... [​IMG]
     
  7. Eric Samonte

    Eric Samonte Screenwriter

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    When ur credit limit is quite high and the card is one of those "better" ones, they give it to u free of charge..including credit fraud protection plan, travel insurance, 1.7% interest if u get a cash advance of $20K, etc.
     
  8. Todd Hochard

    Todd Hochard Cinematographer

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  9. Eric Samonte

    Eric Samonte Screenwriter

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    Its a Quantum MBNA and the rate is up to August '03. I also have another MBNA offering 0% up to July '03. Short term but if one is in need......
     
  10. Todd Hochard

    Todd Hochard Cinematographer

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    Ahh...I thought you meant for the life of the balance. That would be too good to be true.[​IMG]
    Citibank keeps offering me 4.9% no-fee transfers, for the life of the balance.
     

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