Credit Card Protection Plan Worth It Or Always a Scam?

For just about anything you want to get off your chest about credit cards.
4 posts
dr.jenik
 
Posts: 1
Joined: Fri Jan 20, 2012 2:31 pm
Location: US

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?


jeffysdad
Centurion Member
Centurion Member
 
Posts: 875
Joined: Thu Apr 30, 2009 2:32 pm
Location: Texas

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

Maybe not a "scam" but always a ripoff, imo.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.

DoingHomework
Centurion Member
Centurion Member
 
Posts: 707
Joined: Tue Sep 22, 2009 1:15 pm
Location: Arizona

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.

Celestine
Centurion Member
Centurion Member
 
Posts: 152
Joined: Tue Jan 10, 2012 1:02 am
Location: Los Angeles, California

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



Return to “General Credit Card Talk”

Who is online

Users browsing this forum: No registered users and 0 guests