Sign Up Here for Credit Card Assurance?

Why would someone pay for credit card payment assurance to the tune of $1.99 per month?

I recently opened a credit card to take advantage of some rewards in the next few months, which I plan to close shortly after that. When activating the card, you were required to call their toll free number to “potentially” receive a $20 gift card. There was no way to activate the card online. Otherwise, I would’ve gone that route.

After having a nice chat with the woman from South Carolina, we discussed the weather where we both were; she went right into her prepared speech.

If I would just sign-up for this credit card assurance program to the tune of $1.99 per month they’ll pay off my credit card balance if I ever lost my job or was unhealthy enough to work. Just for that small fee, which will charge regardless if I pay my balance in full each month, will give me a peace of mind knowing it’ll be covered if I ever couldn’t work to pay my bill.

Oh, thank you credit card Gods for a program that’ll cost me $24 per year just to know if I ever couldn’t pay for probably a limited reason with many hoops to jump through, you’ve got my back.

I kindly told the woman, no thank you. I wanted to explain that the card had a limit of $1,000 and if I could not possibly pay that back because of job loss I should not be using it period. I didn’t though.

The more I thought about it after the quick conversation, of which I had to tell her twice not to sign me up, I realized that someone somewhere is paying this fee.

Credit card companies wouldn’t sell something that didn’t make them cold hard cash. And if they are selling it that hard to me, apparently others signed up for it easily. Wahoo! You get a $20 gift card for signing up, which means you’ve broken even about ten months into this service, but what are the terms after that? Do you have to pay forever? I don’t even want to know.

I do realized I could’ve hacked their system here as well and received the $20 gift card for about $2 in a one monthly fee before closing the card, but I didn’t want to deal with the hassle.

Next time, I won’t be opening a card with this company. If anything, it was just annoying. I hate sales pitches, especially for ridiculous programs that soak people dry of their hard earned money. I do plan to close this card a lot sooner than I had before, after utilizing it for what I needed.

Another small reminder that I’m not a credit card hacking kind of gal.