Credit card payment protector: yes or no?

**acidcookie** · 01-28-2009, 01:56 PM

I have the standard payment protector on my credit card; the kind where I pay x amount per $100 that's on there for insurance against losing my job, etc. etc. I don't have any credit card debt, I just use one cash back rewards card for everything and pay in full each month.

I've seen some arguments against having the payment protector, especially if you have savings, etc.

What's your stance? Should I just pay the few bucks each month or is it extra money I've been talked into spending that I don't need? I'm reviewing all my spending again to see what further cuts I can make.

**Greebo** · 01-28-2009, 03:03 PM

I have the standard payment protector on my credit card; the kind where I pay x amount per $100 that's on there for insurance against losing my job, etc. etc. I don't have any credit card debt, I just use one cash back rewards card for everything and pay in full each month.

Ok so - if you lost your job, and you carry no credit card debt, what exactly is this "protector" going to do for you?

What are you paying, per month, for this protection, and how much cash back are you getting each month? I have a strong suspicion that if you went to cash/debit card use only (yes, sacrificing the so called "rewards") and stopped with this protection scheme of theirs, you'ld end up with a net positive.

**monkeywrangler71** · 01-28-2009, 03:11 PM

It is the absolute biggest rip off ever thought up by a credit card company, and that's saying something. If you want to put it in perspective, multiply the rate by a thousand and ask yourself if you would pay that much every month for a 100,000 insurance policy.

**The Muse** · 01-28-2009, 03:19 PM

There's no way I'd pay for that service.

If you don't carry a balance, you aren't spending money you don't have, so I'm not sure in your case why you'd need the protection. It seems like even if you lost your job, you'd be able to cover any outstanding balance.

**Contrary Housewife** · 01-28-2009, 05:06 PM

If you aren't carrying a large balance you are giving them money for nothing.

FWIW, when my husband lost his job we tried to get them to pay up and found it was a 3 month process, during which we still had to make payments. There was some other problem with it, I forget what now, but they made it very difficult to collect the insurance.

**acidcookie** · 01-28-2009, 10:27 PM

Originally Posted by Greebo

Ok so - if you lost your job, and you carry no credit card debt, what exactly is this "protector" going to do for you?

What are you paying, per month, for this protection, and how much cash back are you getting each month? I have a strong suspicion that if you went to cash/debit card use only (yes, sacrificing the so called "rewards") and stopped with this protection scheme of theirs, you'ld end up with a net positive.

Moneywise I still make out way ahead. I pay at most $4 a month and get on average $20-30 back. So they are certainly still "rewards." It was one of those things that I implicitly agreed to when I got the card and hadn't thought till now to cancel it. Just wanted to hear the arguments for/against...