Purchasing Credit Card Protection
Protecting your credit cards is getting more and more important. Have you thought about what could happen if you aren't able to repay money you owe?
Purchasing Credit Card ProtectionOur security is becoming increasingly threatened by new technology and clever criminals who want to steal our money, whilst our ability to pay back our loans and debts is diminishing as the credit crunch really hits us hard and recession looms.
Credit Card TheftLosing a credit card or having one stolen can be a stressful and unnerving experience, especially if your card is subsequently used fraudulently and you loose money or are unable to pay bills. Identity Fraud is an increasing problem in the UK and we must be more protected to tackle this properly.
For a small annual premium it is possible to insure all your credit , debit and store cards. Most insurance policies that protect credit cards may also include other benefits such as: emergency cash (for example, when you are abroad or in trouble), replacement tickets (when yours are lost or stolen, even in a foreign country), a lost key service and luggage retrieval.
As long as you report the theft or loss within 24 hours of discovery you will normally also be fully protected from fraud. Always check the credit card protection small print for precise details! It may be boring, but it's a good idea to know what you are covered for. The Annual cost of obtaining credit card protection cover should be approximately £15 to £20.
Recession Proofing your Credit CardsAnother thing to take into consideration is insuring your ability to repay cash owed, during unpredictable times, such as recession. When you take out a loan you will normally be offered a PPI (Payment Protection Insurance) policy which is designed to make payments for you if you cannot repay the money due to accident, sickness or unemployment. The same kind of policy can be organised to cover your ability to pay back credit card debts.
Unfortunately, insurance will add pounds to the cost of a loan or credit card debt, but if you are worried about how you would pay back money you owe if you could not work or were made unemployed, then some kind of credit card or debt insurance would be useful.
Firms such as Antinsurance, Paymentcare and the Post Office are worth investigating – shopping around is essential because price (and how much money is covered) varies. The difference between the most expensive and least expensive loan or credit card protection can be up to £5,000, on a 5 year £25,000 loan.
What Should I Do?Difficult times call for effective action. You may not necessarily ever need to use an insurance policy, but that's not why you take one out. You take one out to give yourself piece of mind, so that you know if times get tougher and you are literally unable to pay money you were once able to, that you're covered.
Whatever protection you get hold of, always make sure you read the exclusions and terms and conditions carefully.