Credit Card Protection Plan Worth It Or Always a Scam?

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Credit Card Protection Plan Worth It Or Always a Scam?

Postby dr.jenik » Fri Jan 20, 2012 2:39 pm

Upon activating my new credit card today the representative on the line tried very aggressively to sell a credit card protection plan for me account. The specifics I do not recall though it was to the best of my recollection 0.89% of spending.

Being that I am gainfully employed I do not foresee a need for such a plan at the time.

Though if circumstances were to change, I would like to know if any credit card protection plans are worth it?

Are the plans always a scam regardless of the bank affiliated with such offer?

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Postby jeffysdad » Fri Jan 20, 2012 2:46 pm

Maybe not a "scam" but always a ripoff, imo.
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Postby DoingHomework » Fri Jan 20, 2012 5:04 pm

Yep, a ripoff. You are paying for their protection. Build an adequate emergency fund and NEVER charge more that your EF balance and you'll have better protection for free.

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Postby Celestine » Sat Jan 21, 2012 9:27 pm

It is not a ripoff nor a scam. Consider it as an "insurance" - i.e. life insurance, medical insurance, etc - that will kick in once you need it.

So to say if anyone thinks that those "protection" offered by lenders are a scam or ripoff, then that means life insurance, medical insurance, and such are ripoffs and scams.

But if you have ALOT of backup money or cash, then you probably don't need.
"Nearly all men can handle adversity, but if you really want to test a man's character - give him power." - Abraham Lincoln

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