Credit Cards - Compare Credit Card Offers at CreditorWeb
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The New Macy’s and Bloomingdale’s American Express Card
A Quick Look at Different Types of Credit Cards
What Consumers Need to Know About the Credit Card Reform Act
Credit Card – Friend or Foe?
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Should You Add Accounts to Your Credit Card Bank?
New Credit Card Laws and Your Rights
Alternative Credit Card Types
Understanding Credit Card Terms (Glossary)
How Much Your Credit Cards Are Really Costing You?
A Plain English Guide to Credit Card Reform
Credit Card Protection Plans: Valuable or Waste of Money?
Why Credit Card Rates are Rising
How to Minimize Corporate Credit Card Abuse
Not Everyone Included in New Credit Card Laws of 2010
How to Manage Multiple Credit Cards
Should You Consider Credit Insurance for Your Credit Cards?
Credit Cards As Overdraft Protection
How to Talk to Your Kids about Credit Cards
Live Thrifty Without Cutting Up Your Credit Cards
Taking Responsibility For Your Credit Cards
Credit Etiquette for First Time Card Holders
Understanding Frozen Credit
The Credit Card Industry Could Face Tough Changes
21 Credit Card Hacks : The Credit Card Holders Survival Guide
The History of Credit Cards
Why Credit Card Life and Disability Insurance is a Rip-off
The Pros and Cons of Having a Credit Card
How Credit Cards Work
Line of Credit or Loan?
Teaching Children about Credit Cards
What is a Home Equity Line of Credit?
Understanding Credit Card Terms
Making Sense Out of Your Credit Card Statement
Purchase Protection
Credit Card Usage Explained

Purchase Protection

Most credit card companies provide purchase protection insurance for free, as an included benefit of owning their particular credit card. As competition among credit card companies is so fierce, creditors are attempting many different strategies in order to gain and retain loyal customers. Purchase protection insurance is one of the benefits a credit card company may offer that their leading competitor does not- in an effort to gain new customers and keep customers from "going over to the other side". It is difficult for creditors to retain customers when every other month it seems a new company is offering a 0% balance transfer option to new account holders. Customers have learned to play the credit card roulette game. When their promotional interest rates go up; they simply find a new card to transfer their balance to. If your credit card account is one that does not offer purchase protection insurance without charge as one of the included benefits, you should be able to pay an additional fee in order to obtain "optional purchase protection coverage".

The actual terms and restrictions of coverage for purchase protection insurance will vary from one credit lending company to the next, however, most insurance will cover purchases made using the credit card against theft, loss, or accidental damage that occurs within a certain period of time. Typically, purchase protection will cover you for about 90 days from the date of purchase. In order for a purchase to be eligible for coverage, it may have to be worth a minimum amount of money, also. In order to fully understand your coverage, you need to read through your credit card’s terms and agreements for all of the specific details regarding the type of purchase protection coverage you are entitled to. It’s always a good idea to know your rights and coverage before you actually need to use them. If you have any questions about what you read, don’t hesitate to call the credit card company’s customer service line- that’s what they’re there for!

What does purchase protection insurance coverage do for the typical credit card user? For most people, it will never actually do anything! Many people are not even aware that purchase protection exists, and don’t know whether or not their own credit card offers the protection. For credit card users who are aware of the coverage and want to use it, it covers you in the event that you purchase an item using your credit card that becomes damaged on the way home or soon thereafter, becomes lost, or someone steals it. These are the typical eligibility requirements for purchase protection coverage, although once again, be sure to read your specific credit card company’s policy for the exact details of your coverage. In most cases, the credit card company will refund the amount of the purchase (as shown on your store receipt or credit card statement) back onto your credit card account, although there is almost always a maximum limit to how much money can be refunded under the insurance. Most policies will also have strict exclusions for certain types of damages to items purchased, so a purchase protection insurance policy is not a perfect solution as not all instances of damaged items will be covered, but at least it is better than no coverage!

Purchase protection gives you peace of mind when you are making purchases online. While the majority of e-commerce sites are legitimate, there are a few that take your money and then don’t deliver the goods as stated on the site. In these situations, you may be able to call on your purchase protection insurance to assist you in getting a refund for the item.

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