If a person is looking for credit insurance there are some things that they should know. a person is going to want to look at the cost and the type of credit insurance they should purchase.
Credit insurance is expensive but many feel that it is worth it. The credit insurance will cost a person around $370 a year. This will cover them up to $50,000. That is just an average figure. There are some things that will impact the price of credit insurance. The type of loan or credit that a person is getting will have an impact on the price. The amount of debt they have and will want to be covered will also have a big impact on the price. The type of coverage selected will also impact the price.
Open vs. Closed Credit
Open credit or revolving credit will allow a person to borrow up to their credit limit. They do not have a fixed repayment schedule but they will need to make minimum monthly payments on this debt. As a person pays down the debt they can borrow more money.
Close credit will be repaid over a fixed time like an installment loan. A car loan is an example of a closed credit loan. A person will need to pay off the total amount in a fixed time.
Things to Consider
When looking at credit insurance a person needs to look at how their finances will be impacted. They should research what is covered under this policy and if they can get insurance for the amount to cover their loan or payments for a longer duration of time.
All of these factors will impact the cost of credit insurance. If a person wants protection for their debt they may want to think about getting credit insurance.