Protector Plan + Marriage, Yay or Nay?

June 3, 2007 7:22 PM

I am getting married in three months and just got off the phone with citi credit cards. Their credit protector plan will credit (meaning I don't have to pay them back) my account for two months' minimum payment when I get married.

As anyone who calls their CC company probably knows, they often push these "protector" plans because they're a big money maker. (I am assuming people sign up and forget to cancel.)

It would be nice to have a break from paying for two months (even just skipping a month or two wouldn't be a bad thing).

Should I sign up? Is there a down side I am not thinking of? Would this hurt my credit? (I know from this post that it may put me on junk mail lists. That might be worth the risk though...)

posted by parma to work & money (8 comments total)

Interest accruement, over the two months?
posted by Blazecock Pileon at 7:22 PM on June 3, 2007

What's your minimum payment? $15? Or something more significant?
posted by intermod at 7:38 PM on June 3, 2007

Interest accruement shouldn't be significant I think - even if I am being charged some interest.
My minimum is $61 on the citi - and ranges between $10 all the way up to a few hundred on a few credit cards.
posted by parma at 7:44 PM on June 3, 2007

ugh, don't sign up for those. they are just money pits. here's a much better solution:

if your checking account has an online bill-pay feature, you can just set it up to send a check for the minimum to each card when it's due. you should be able to set it up as a recurring payment, and then just set whatever end date you want.
posted by thinkingwoman at 8:07 PM on June 3, 2007

don't sign up. I am one of those people that signed up in 2002 and just forgot. I recently calculated how much I've poured down the drain and canceled the damn thing last week. So I say skip it. Two things to consider

1) Yes, you wont have to make the minimum payment. But you know what? you'll still pay interest on the balance so it makes no sense to delay paying your stuff down.

2) You get a break from payment for life changing events (e.g. getting laid off from your job; I didn't know they counted marriage). But unless you have this on all your ccs, then it doesn't make that much sense imo.
posted by special-k at 9:11 PM on June 3, 2007

If you can't afford your monthly minimum payment for two months (we're talking $120 bucks here from what you said) then you've got bigger problems that these "skip a payment" services aren't going to help solve. Understand them for what they really are: an opportunity for credit card companies to make additional money from you by praying on your fears (loss of job).
posted by furtive at 5:59 AM on June 4, 2007

How much is your time worth to you? Even if you remember to cancel on time, it will probably be a bit of a hassle to get them to cancel the service for you. Consider this, think of how hard they work to get you to sign up. Once they have you signed up, they'll try even harder to keep you there.
posted by drezdn at 6:11 AM on June 4, 2007

Oh and canceling sucks. I was on the phone for an hour repeating "Just cancel my account, please".
posted by special-k at 1:46 PM on June 4, 2007