Monday, July 17, 2006

Is CreditShield Necessary?

If you own a credit card from any bank, have you ever noticed the few dollars that are added to your outstanding balance every month? If you have not, now is a good time to check it out. If you have noticed, then the term CreditShield should be familiar to you but have you ever wonder if you truly need CreditShield?

What exactly does Creditshield do for us? In simple terms, a premium is charged for certain quantums of statement closing balance and helps repay outstanding credit card bills should the unforseeable happen. Do cardholders really need this protection? After chancing upon a book over the weekend, I was suddenly enlightened that this so-called "protection" is absolutely unnecessary for people who do not rollover their monthly balances. If you have the cash to repay your monthly charged amount in full, why in the world do you need protection against something that you are not worried about? By simply terminating Creditshield, you will have saved another small sum over a year with negligible increase in your non-repayment risk level.

Inspired? Go take out your last credit card statement and look for the CreditShield entry and if you are not the type to rollover monthly balances, look for the customer service hotline and drop them a call to terminate the CreditShields for your credit cards. And since I have just provided advice to save some immediate cash, how about buying me a coffee? :-P

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