April 29,2009
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Credit Card Protection Protection, Pt.1
Persistently persistent.Probably all of us have been hounded at one time or another by insistence that we are foolish not to accept a generous offer of credit card protection. For most of us, it's a constant barrage of phone calls and mailers. They come under every different disguise any more and few refer to themselves as what they are...credit card insurance policies and obscure services. In these uncertain times, the credit card industry is plying on the fear tactic that we "can't live without it".
LowCards.com CEO, Bill Hardekopf has spoken up as a consumer advocate to enlighten us as to what to look for and what to watch out for with credit card protection plans. For instance, one thing you’ll notice now is that, the underlying motive carried by the credit card issuers has shifted from 'a little extra gravy money' (as much as a 300% markup) to insurance policies that will also protect them. It's more noble then soliciting 'gravy' but remember-- you pay for the policy, not them. Mr. Hardekopf observes the greater outreach is to those consumers who carry a large balance on their cards.
In these troubled times, of course, it prudent to secure a little credit card protection. How much protection? Well, that is the question. It's important to not only weigh the risk (which is usually very minimal) but also the obscure services. In play, these services tend to be the only tangible evidence that anything has been delivered to the consumer who is faithfully delivering hard-earned cash every month to the provider.
Actually, the payment method is so simple that you won’t even notice it. The 'protection provider' does all the work for you. The only thing you notice (or don't) is that sticky little $4.95 'hitch-hiker' that always hides innocuously among all of your larger charges every month. As you look back over the years, you realize how persistent they've been about not attracting attention but always being included in your credit card payments. Isn't convenience great?