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Nowadays no one can be protected from financial collapse. You may turn unable to pay off your debts or loans due to a loss of your job or some illness. This conduces to appearance of really serious problems when you cannot pay your bills and start settling the case with the creditors. However, banks and credit card companies promise that there is a means that can help you to avoid such troubles.
When customers are searching for a credit card, banks offer them disability protection plans. Such a plan will be available for you for a fixed monthly fee. According to the promises of banks the plan guarantees paying all your bills, if you fail to do it yourself due to your illness or other acts of God. But in fact, such plans do not always protect you.
My sister once told me her sad story connected with her disability insurance. She had been a credit consumer for several years and was lucky enough to get a credit card from one of the leading credit card issuers. The plastic offered no annual fee and low APR along with fine disability coverage.
Being a conscientious credit consumer, she never exceeded her credit limit and paid off her debts on time. Therefore she had good reasons for getting support in case of financial disability. After missing a few credit card payments due to her illness, my sister decided to take advantage of her disability insurance. But it appeared to be red-tape which in turn entailed the increase of her credit card debt.
You may wonder how it all could happen. The reason for that is quite commonplace - the bank required tons of documents and their paper work took a lot of time. Meanwhile my sister's debt was growing rapidly. My sister was asked to provide the date she fell ill and official papers from all the doctors who examined her. After that she was asked to give the details of her disability which was rather insulting for her.
Other questions touched upon her credit card and personal information which also took a long while. It's not difficult to imagine how frustrated she was when it turned out that those were just attempts to refuse her. As a matter of fact, it's really hard to prove your disability and my sister managed only to freeze her credit card bills with legal help. In addition to all her problems her fair credit fell to bad one.
So, it's a widely-used trick of many banks to tempt customers with attractive terms and benefits without including insurance in these offers. But as soon as you become unable to pay your bills, the credit company will by no means pay them for you. Therefore choosing a credit company or a bank and their credit card offers, be utterly attentive and meticulous, otherwise you are most likely to face the same situation as my sister did. And it is for sure far from being pleasant.
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Comments• eZine Comments... |
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thankyou very much for this article. i wish i read it before. now, having gotten into some undesirable situations several times (with my wife) we got a little bit more wise.... hope this article helps others...
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As you see, automobile rewards cards work like any other rewards plastic. Some of them provide cash back and rebates, others imply point accumulation programs.
Many people travel by air on the regular basis - on business or for pleasure. This is why plastics for traveling are very popular, being in more demand than cash back credit cards. Consumers reportingly prefer using plastics with hotel or airmile rewards to regular cash rewards cards because travelling rewards are more satisfactory.
It is a well-known fact that credit cards with hotel and frequent flyer rewards are available for consumers with good and excellent credit history. These people can choose among numbers of bank offers in order to find the most beneficial credit card. A wise consumer who wants to keep his high credit score and save his money, knows the importance of choosing the right card.
The lucky visitors of the next Olympics'2012 in London are going to be twice as lucky because they will not have to carry money with them! Visa, the official credit card provider for the next Olympics, promises that all the purchases will be cashless in the Olympic village. What is more, Visa company announced they will issue quite a number of contactless credit cards which need only swiping over a reader. Thus, a transaction will take no more than a few seconds. Credit cards for quick and safe purchases are going to be used on public transport and will work as entrance cards for different events.
It is no secret that consumers today are terrified by regular reports of ID fraud cases. Every day you come across information about unauthorized charges on credit cards, card losses or phishing via e-mail or phone. Once being a victim of ID thieves, a consumer can spend years on repairing the damage of both credit history and finances. However, there are serious measures taken by credit issuing companies. It is quite understandable, because fraudulent activity also results in the significant losses that banks incur.
A group of lenders from Canada and the USA in cooperation with Visa Inc. started a new program for protecting customers from credit card fraud. The program basically provides real time alerts about all suspicious transactions with your credit cards. Thus, the service widely known as fraud alert has become more convenient and fast.

