Archive for the ‘Credit Card Protection’

Credit card protection insurance can give you the peace of mind that in the event you lose your income due to redundancy, illness or accident, you will have financial assistance with your monthly credit card repayments.

This insurance is a form of payment protection insurance and pays out a tax free sum every month should you become unable to work through no fault of your own. This helps keeps your monthly credit card commitments up to date and the wolves away from the door if you become a victim of unemployment or incapacity.

Credit card protection should not be confused with the type of credit card insurance that protects you should your card get lost or stolen. Credit card cover actually allows you to keep maintaining your credit card repayments even if you have lost your income.

Just some of the benefits of this cover mean that:

• You do not have to worry about finding the money to service your monthly credit card repayment;

• You will not find yourself facing charges and additional interest for late or missed payments;

• You will not damage your credit file;

• … which in turns mean that your chances of getting future credit will not be jeopardised.

A typical credit card insurance policy will pay you a benefit every month for up to 12 months – or until you get back to work if it is before the 12 months is up. Some providers will pay out for up to 24 months but obviously the cover will be more expensive.
How much benefit you will receive will be agreed at the time of taking out the credit card protection and this will usually be a percentage of your outstanding balance. The benefit will start to pay out usually around 30 to 90 days after you are incapacitated or made involuntarily unemployed, depending on the individual policy terms and conditions.

Look out for policies that are back dated to the first day of your claim, meaning that you don’t lose out.

The cost of credit card payment insurance need not be prohibitive. Historically it can be expensive when taken alongside your credit card from the same provider, but, as with most things in life, you are free to shop around for the cover.
Using a standalone provider such as the ethical British Insurance is among the cheapest ways of getting good value cover, without breaking the bank.

So, if you want the peace of mind that credit card protection can give you, it may pay to start shopping around for your cover now.

Credit card protection can be vital when you find yourself out of work with no savings to fall back on. This policy will help you keep up to date with your credit card payments and avoid having bad credit. It does not have to cost much and premiums are usually based on your outstanding balance so you won’t pay more than you have to.

If you’ve been offered card protection but you were unable decide on whether or not to take it, at the end of this article, you should be able to pick a side and make a decision as to whether or not it is right for you.

What Is It?

Credit card protection insurance is designed to pay you a benefit if you become unable to work for an involuntary reason such as accident, sickness or redundancy. The benefit will cover a percentage of your monthly balance so you’ll never miss a payment.

Your credit profile will stay intact and your stress levels will remain low. It is bad enough being faced with any involuntary unemployment so the last thing you’ll need is to worry about is your credit card bills.

Policies will pay out until you return to work, providing this is less than 24 months as this is the maximum time providers will pay out for.

If you need to make a claim, there are deferment periods you’ll need to wait out so be sure to ask your provider for more details on this.

You may be able to choose the amount of cover you need, but most times these levels are preset by the provider.

Things You Should Know

You need to be careful when credit card protection is being offered because
Some providers won’t take the time to explain the terms and conditions to you.

If this is the case you could end up with a policy that is not worth anything.

To avoid this, make sure to match your circumstances to the policy terms before purchasing. Ask about any exclusions or other conditions that could prevent your claim from being successful.

If you took your provider’s protection product, then you will probably pay a lot more than if you got your policy from an independent provider.

Independent companies like British Insurance are so enthusiastic about keeping consumers happy that they offer a huge savings of over 80% on income protection policies.

Credit card protection is important if you are concerned about the security of your job and especially so if you have no savings or replacement income to help you while you were out of work. It does not have to cost much and while you may never use it, the peace of mind you have knowing it is there, is priceless.

Anyone who has a credit card may have been offered all sorts of add-ons when they first applied for it. Typically, a provider might offer protection for if the card happens to be stolen or if the person’s identity is somehow copied and then used to obtain a duplicate of the card. Many companies will also offer a form of insurance for when the person suddenly finds themselves in a position where they are unable to keep up with payments. Card providers are not the only people who supply this kind of cover, and many people may not even be fully aware of how credit card protection works.

Most policies protect a card holder should they suddenly find themselves without an income due to accident, sickness, or involuntary redundancy. Around a month after a successful claim, the provider will start to pay a proportion of someone’s outstanding credit card balance each month until the person receives an income again. The normal procedure is for a policyholder to insure a set amount of their outstanding balance, usually a percentage of what is owed each month.

This type of insurance is designed to make up the shortcomings of things like sick pay, redundancy packages, and a person’s savings. None of these things are likely to be adequate when it comes to keeping up with the regular commitments of a large credit card debt. Credit card protection which includes payment protection insurance will keep paying out towards the debt while someone is out of action. The main benefits of this is that it protects someone’s credit rating, and prevents their case been referred to a debt collection agency. Being out of work is enough stress as it is, without having to face the growing pressure of a large outstanding debt.

Payments will continue either until someone gets back to work, the debt is paid off, or the policy expires. Most will continue to pay out for anything from a few months up to two years.

A word on policies offered in conjunction with credit cards - they have been known to offer poor value and can be more expensive than policies which are bought independently. It is also worth mentioning that someone does not have to agree to take out such a policy in order to qualify for a credit card.

A better option might be to look around some of be less ‘high street’ type companies which are more independent and have different attitudes when it comes to commission for people selling insurance. An example of this would be specialist payment protection provider British Insurance, which can save people money on their credit card protection
without providing a ’stripped down’ policy which may fall short in a crisis. Remember there is no need to automatically take the first deal that is offered and a consumer could save cash by turning down cover offered at point of sale, and then finding a policy elsewhere.

Credit card protection is a valuable source of lifeline to cling onto if you should become a victim of accident, sickness or unemployment which meant a loss of income. In any of these cases you would still be expected to pay the outgoings of your credit card each month and without an income this could be impossible. If you have taken out protection by insuring a percentage of the monthly outstanding balance on the card you would receive this sum back if you became a victim of one of these events.

You would have to shop around for credit card protection if you want to secure the cheapest premiums possible. If you get a quote with specialists in payment protection British Insurance you would get one of the cheapest premiums possible. You will also get cover that would be provided with just a few exclusions and British Insurance supply you with the information you need to ensure that a policy would be suitable for your needs. Other providers could add in many more exclusions so when checking the cost of the insurance you have to check these.

Ethical payment protection provider will provide you with a policy that begins to provide your income after just 30 days and the protection is backdated to the first day of you being unemployed or incapacitated. You would then have up to 24 months in which to make a recovery or to find another job as after this the protection would cease. However if you shop around with other providers you would have to read the small print of the cover as some specialist providers will continue paying out for up to 12 months only. Some will also supply you with cover that comes with a 90 days deferment period so again checking the terms of the policy is essential.

Credit card protection is a great back up plan to fall back on if you were to lose your income through unemployment or incapacity providing you had checked for suitability prior to taking out the policy. You could risk falling back on savings but this could leave you with problems as you would not know how long you would have to turn to your savings and they could run dry. It can also be a better solution than risking being able to claim benefits from the State. You would have to be eligible to claim benefit and even if you are many times the income you could receive from the State falls short of the income you are used to bringing home when working.

Do you need credit card protection? In today’s world it seems as if credit cards are the way to go and you probably have more a card on you when you go shopping. Credit cards are used for everything from grocery shopping to movie rentals, and yes they are very convenient and easy to use and they are important to consumers.

With all that being said it is also important to consider the repercussions of not paying your credit card bills on time. The enjoyment of using your card can quickly turn to dismay when the red letters start to turn up. Fortunately there is a credit card protection available to keep you from experiencing the ugly side of owning a credit card…or two.

Main Features Of A Credit Card Protection Policy

Generally this product will make your credit card payments for you if you had an accident or became too ill to work or if you were made redundant. Some providers add this on to your policy by inserting a clause in the fine print, so if you want to know for sure, call up your card provider to check.

There are different payout levels, you can have your entire monthly balance paid off or some providers will only maintain the minimum balance.

The payments are usually made directly to the consumer, so be sure to pay off your bill when you get the money.

Generally when you are receiving the payouts on a claim you won’t be required to pay the monthly premium for your protection policy.

Benefits of Protecting Your Credit Card Payments

By protecting your payments you won’t have to pay expensive late payment fees, and you won’t have any missed payments that could lead to a bad credit profile. Having a bad credit profile does not only affect you now, it could make it harder for you to obtain low credit rates in the future.

When you’ve made a successful claim the insurance will pay out for between 12 and 24 months based on the provider. This is often a lifeline that is very beneficial in keeping you financially stable.

Things You Should Know

When selling these protection policies, many providers don’t even take into consideration the circumstances of the card holder. There are often exclusions and specific eligibility criteria attached to the policies, so before you quickly accept the terms from your credit card provider, question them thoroughly. You need to know if they will payout if you were to make a claim.

The cost of premiums is usually very low if you go to an independent provider. For example, ethical provider British Insurance can save you over 80% on income protection policies.

Before you make any decision, as with all purchases, do check all the details to confirm that the policy is right for your circumstances.

Conclusion

If you own a credit card and use it regularly, you will benefit from having credit card protection, if you were to lose your job, the debt won’t go away your income would. So why not consider protecting your repayments with a policy that will maintain your monthly balance until you are back on your feet again.

Paying for more expensive items by credit card has become a fact of life the western consumer market. Millions of people use them every day for items like expensive electrical goods, emergency repairs to their cars, and even things like groceries before the money finally comes in on pay day. Most people are fully aware of what happens if they are unable to keep up with their payments. Interest increases rapidly, letters start to arrive from the bank and there is even the risk their property will be repossessed. A more lasting effect involves a negative impact on their credit rating which might affect their ability to borrow in future. This is why some people opt for different kinds of credit card protection to make sure they are still able to pay even if they lose their income.

Should someone find they suddenly lose their salary because of illness, accident, or involuntary redundancy, this type of cover will step in and carry on paying a section of their outstanding balance each month until they are once again able to pay it themselves. This type of cover is therefore a payment protection insurance product aimed specifically at a credit card. It will not pay for things like mortgage debts, or other types of loan.

This type of cover will often be offered in conjunction with a card. This means the plastic provider will actually offer a policy to an applicant at the same time as they set up the credit card. This is known as offering a policy at ‘point of sale’ and will not always provide the best available deal. Do not be tempted to sign on the dotted line just because the policy is being offered by the same person who is providing your credit card - this connection does not mean they are giving you a discount. In fact you might find far cheaper cover by saying ‘yes’ to the card, ‘no’ the insurance and shopping around a range of standalone providers to get an insurance policy.

Once in place, a policy will activate following a successful claim and will pay an agreed percentage of your outstanding balance each month until you are able to start paying it again yourself. The percentage will be agreed when you take out the policy and about 10 per cent is a normal starting point. So if you have a balance of £200, the first insurance payment on the bill would be £20.

This means a credit card holder need not unduly worry if they suddenly lose their income through no fault of their own - the insurance will make sure they always continue to pay off the card balance, although they will only payout for a maximum amount of time, which is normally about 12 months.

Simon Burgess is managing director of British Insurance. His company is a standalone provider that only deals in cover and does not attach protection to loans. He said: “Shopping around is important not just for retail items but also for insurance. A good card provider is not automatically a good card insurance provider, and a consumer might find credit card protection is cheaper elsewhere.”

Credit card protection is offered when you take out the card from the lender. However there is a cheaper way of taking out cover and this is with a payment protection specialist. If you were to look with ethical provider British Insurance you would be able to make the biggest savings. You would also get cover that is sold by trained staff and comes with just a few exclusions.

You would take out a policy by insuring a percentage of the balance that is outstanding on your credit card each month. This would be the sum that you would receive back as a tax-free income and which you would be able to use towards servicing your credit card repayment. You would not have the worry of finding all of the money needed to maintain your repayments and could concentrate on making a recovery or finding work.

Leading payment protection provider British Insurance offers protection that comes with no excess as their benefit is dated back to day one of your incapacity or unemployment. You could put in a claim from the 30th day and then have something to fall back on for up to 12 months. If you compare the cost of credit card protection with other providers you would have to check the small print of the cover as some providers would ask that you wait for as long as the 90th day before claiming. You would also have to be aware that some providers extend the payout to up to 24 months so this also needs checking before taking out the protection as does the amount of exclusions that the provider has included. It is imperative to check the exclusions against your circumstances as this is the only way of ensuring that you would be eligible to claim.

Credit card protection does need to be considered by anyone who relies heavily on their credit card as a means of making ends meet. If you are unable to keep up with the repayments then of course your card will be declined and you would not be able to use it. You would have to make an agreement to repay back what you owe to the lender and if you cannot that may take you to court. Your credit rating will also be affected and this is the first thing that all lenders will take into account when they are deciding on approving your credit application. This means that obtaining credit of any kind will be very hard in the future. Even if you are given credit you could have to pay a high rate of interest for the luxury. With a policy behind you, you would have something towards ensuring that none of this happens which allows you to search for work or to make a recovery with peace of mind.

Credit card protection needs to be given some consideration by anyone who relies on using their card as a means of making their income stretch. You will have been offered the cover at the time of taking out the card but usually this would have come with high cost which often makes it unaffordable. If you choose to take out the protection with a standalone payment protection provider you will be able to save on the cost of protecting your credit card repayments.

You would insure a certain amount of the outstanding balance of your credit card which is set by the provider, against the possibility that you might become unemployed or become incapacitated due to accident or illness. If you had to make a claim on the cover you would then claim back this sum of money as a tax-free payment each month for the length of the protection which would vary on the provider. All providers’ state terms for the date the cover would begin and the length of time the policy would payout.

If you choose to take a quote for credit card protection with ethical standalone payment protection provider British Insurance you would be able to make your claim on the protection once you had been unemployed or incapacitated for a period of no less than 30 days. The protection would be dated back to day one of your unemployment or incapacity and then it would continue paying an income for 12 months after which time it would cease. If you choose to shop around and compare cover you would need to check the small print of the policy as some providers might state that you would have to unemployed or incapacitated for a period of at least 90 days before making a claim. You would also need to check to see how long their payments would continue as with some providers it could be for up to 24 months. When checking the small print also check the exclusions. All providers add in exclusions and some more than others. British Insurance will make you aware of the exclusions on their website so that you can compare them against your circumstances. Once you have done this you can then rely on the cover for the term of the policy.

It is essential that you consider taking out credit card protection because if you are unable to maintain the repayments you would have to face the consequences. The first thing that would be affected by missed payment is your credit rating. As all lenders take this into account when you apply for credit you could find borrowing in the future almost impossible. Even if you are approved for a loan, mortgage or credit card you could find that you would have to payout a high rate of interest. Protection is better than risking relying on help from the State to get you by as you would have to be eligible and even if you were very often the income that is paid no where near matches the one you rely on.

You are able to take out credit card protection often at a less expensive price with a specialist provider than you can if you have the protection added onto the card at the time of borrowing. Lenders are known to charge way over the odds for payment protection which brings them £5 billion in profits each year. If you take cover with an independent provider you will also have access to the exclusions which can be found in all cover and which have to be checked against your circumstances. You can take out protection for your credit card repayments to safeguard against the possibility that you might become unemployed due to accident or sickness or lose your job due to redundancy.

You take out protection by insuring up to a certain amount of your credit card repayment each month and then this would be the sum of money that you would get back if and when you had to put in a claim. The income would be paid to you as a tax-free sum and would go towards you being able to maintain your repayments without worry if you were to lose your income to incapacity or unemployment.

Without a policy and you could be left with a struggle on your hands to be able to meet your repayments. If you were to fall behind on the repayments you would have to catch up sometime by making an agreement to pay off what you owe a little at a time. In some cases court proceedings will be started by the lender and you could have to sell possession to repay what you owe. You would also have your credit rating affected and this would mean that borrowing in the future would be almost impossible. Lenders all take a look at your credit rating and if this is in tatters due to missed payments you will likely be turned down for credit of any kind. If you are lucky enough to get credit then you might have to pay a high rate of interest.

British Insurance provides one of the cheapest quotes for credit card protection and would payout on the payment protection policy from the 30th day of you being unemployed or from being incapacitated and would pay back to day of your unemployment or from you being unable to work. Once you had received the first payment from the protection you would then have 12 months in which to make a recovery or to find work again and then the cover would cease paying out.

You would have to check the terms of any credit card protection you were considering taking out as some providers could payout until 24 months. You would also need to check them to find out how long you would have to wait before putting in your claim as with some it could be as long as the 90th day.

Falling behind on credit card repayments would be a nightmare. The first thing to be affected would be your credit file and this is looked at by all lenders when you want to borrow. If you have a bad rating then you could be turned down and a bad credit file can take a long time to repair. Of course this might not be the only problem you would have to deal with; the lender could start proceedings to take Court action against you to recover what you owe. You could lose your income at anytime and with little warning if you were to suffer an accident or an illness. You could also lose it as the result of being made redundant. In any of the circumstances you can take out credit card protection to safeguard your repayments.

You would pay a premium and this would allow you to insure a pre-agreed sum of the payment for your credit card. If you had to make a claim on the cover you would be given this sum of money back as a tax-free amount each month. This would then be used to continue meeting the demands of your credit card repayment.

One of the best ways to get the cheapest quote is with a payment protection specialist provider. One of the cheapest quotes would be from ethical payment protection specialist British Insurance. They would offer you  credit card protection that would payout for a period of 12 months, your benefit would be backdated to the first day of you being made redundant of from being unable to work and you would be able to file your claim on the benefit from the 30th day. You might find that some providers could offer to pay the benefits for up to 24 months if you shop around and compare the small print. You would also have to compare the terms and conditions for when the protection would begin as some providers will only allow you to be able to file your claim once you have been unemployed or incapacitated for at least a 90 day period.

Credit card protection is an excellent way of being able to maintain the repayments of you credit card providing that you are aware of the exclusions that can be found in the protection. British Insurance being an ethical payment protection provider would include this information on their website. Once you have checked the exclusions against your circumstances and you are sure that you would be eligible to make a claim then you could go ahead and apply online. Cover is a better idea then risking turning to savings as a means to get through unemployment or incapacity. Savings could deplete well before you have made a recovery or have found work again.