How Much Are Credit Card Add-Ons Costing You?

Additional credit card protections could be costing you an arm and a leg, learn how to find these services for less.
woman examining credit card
By Susan Barnes
Updated on: November 14th, 2022

woman examining credit card Many credit card companies provide what they deem valuable services at low costs for consumers. However, these add-ons might be costing you more than you think.

One simple service such as credit protection could cost you $0.99 per $100 balance, so if you have a $500 balance you could be charged nearly $5 every payment period through the time you keep that $500 balance. In one year that could be nearly $60 for a service that some creditors provide for free.

Let’s take a look at some other costly services

Credit Monitoring

Credit monitoring services are great for those who are worried about identity theft or their credit report. However, there are a few ways you can monitor your credit on your own. Getting a free yearly credit report is a great way to look over your credit. You can also find credit cards that offer notifications when suspicious transactions occur, or that can track your spending habits if you don’t want to go over a certain limit.

Identity Theft Protection

Similar to credit monitoring, identity theft protection by credit card companies is another way for consumers to monitor their credit reports. However, just as we noted above there are several steps you can take to do this on your own.

Payment Protection

Payment protection will cover minimum payments should a consumer lose their job or be unable to cover their payment due to unforeseen circumstances. More often than not, payment protection plans will only begin coverage after a certain time period. The monthly premium might also be based on your current balance, which can prove to be very costly. Try keeping your credit card balances low if you plan on enrolling in payment protection plans.

The Takeaway

Credit card add-ons can cost you more than your interest in some cases, making wise credit card decisions is a great way to start taking care of your credit. Credit monitoring and identity theft protection programs should be left to the professionals, particularly for anyone seeking true financial help. AmOne is America’s one source for all things money and we can help you get set up with legitimate credit monitoring services; your call to us is free and we won’t try to sell you anything. Find out how to reach us and learn more about how AmOne can help you today.