Equifax

Finance Blog

Stay financially savvy with the Equifax Advisor.

Sign up for our FREE Monthly Email Newsletter

 

Thank you for signing up for the FREE Equifax monthly newsletter

In addition to keeping in the financial know, you may be interested in checking your credit score and report.

Understand your credit. Help protect your identity.

Equifax Complete™ Premier Plan

  • Know What May Influence Your Credit Score and Be Alerted of Changes
    Credit score monitoring with custom alerts
    Important Disclosure: The Equifax credit score and 3-Bureau credit scores are based on an Equifax credit score model and are not the same scores used by 3rd parties to assess your creditworthiness.¹
  • Help Protect Your Identity
    Automatic fraud alerts encourages lenders to take extra steps to verify your identity²
  • Lock Your Credit
    The ability to lock and unlock your Equifax Credit Report³
Save 75% your first 30 days with the purchase of Equifax Complete™ Premier

$4.95 for the first 30 days, then $19.95 per month thereafter. You may cancel at any time; however, we do not provide partial month refunds.4

¹The credit scores provided under the offers described here use the Equifax Credit Score, which is a proprietary credit model developed by Equifax. The Equifax Credit Score and 3-Bureau scores are each based on the Equifax Credit Score model, but calculated using the information in your Equifax, Experian and TransUnion credit files. The Equifax Credit Score is intended for your own educational use. It is also commercially available to third parties along with numerous other credit scores and models in the marketplace. Please keep in mind third parties are likely to use a different score when evaluating your creditworthiness. Also, third parties will take into consideration items other than your credit score or information found in your credit file, such as your income.

²The Automatic Fraud Alert feature is made available to consumers by Equifax Information Services LLC and fulfilled on its behalf by Equifax Consumer Services LLC.

³Equifax Credit Report Control™ is only available while you have a current subscription to Equifax Complete Premier. Locking your credit file with Equifax Credit Report Control will prevent access to your Equifax credit file by certain third parties, such as credit grantors or other companies and agencies. Credit Report Control will not prevent access to your credit file at any other credit reporting agency, and will not prevent access to your Equifax credit file by companies like Equifax Personal Solutions which provide you with access to your credit report or credit score or monitor your credit file; Federal, state and local government agencies; companies reviewing your application for employment; companies that have a current account or relationship with you, and collection agencies acting on behalf of those whom you owe; for fraud detection and prevention purposes; and companies that wish to make pre-approved offers of credit or insurance to you. To opt out of such pre-approved offers, visit www.optoutprescreen.com/.

4We will require you to provide your payment information when you sign up and we will immediately charge your card $4.95. After that, we will charge the card $19.95 for each month you continue your subscription. You may cancel at any time; however, we do not provide partial month refunds.

Equifax® is a registered trademark and Equifax Complete™ Premier is a trademark of Equifax, Inc. © 2014, Equifax Inc., Atlanta, Georgia. All rights reserved.

Credit Tips: Do I Really Need Credit Insurance?

Written by Ilyce Glink on April 21, 2014 in Credit  |   No comments

If you are applying for a loan on a big-ticket item, such as a house or car, your lender might ask if you’d like to purchase credit insurance. Sold with either a loan or other credit obligation, credit insurance protects your loan if you can…

credit tips If you are applying for a loan on a big-ticket item, such as a house or car, your lender might ask if you’d like to purchase credit insurance.

Sold with either a loan or other credit obligation, credit insurance protects your loan if you can no longer make your monthly payments as a result of death, disability, or, in some circumstances, unemployment.

To determine whether credit insurance makes sense for you, consider what it covers, how much it costs, and if you can find the same protections under other types of insurance policies.

Credit tips: What does credit insurance cover?

When you hear lenders talking about credit insurance, they are often referring to credit life insurance, which is also known simply as credit life. With credit life insurance, all or some of your loan will be paid off if you die during the term of coverage.

There are three other main types of credit insurance:

If you have credit disability insurance, payments will be made on your loan if you suffer from an illness or accident and are unable to work.

Involuntary unemployment insurance makes your monthly loan payments for a predetermined amount of time if you lose your job due to no fault of your own, such as a layoff.

Credit property insurance protects any personal property that is used to secure a loan if that property is destroyed by theft, accident, or natural disaster.

While credit insurance protects your lender from losing the money you borrowed, it can also protect you from losing your savings or property in the event that you stop paying on the loan. In the case of your death, the title to the underlying asset would be transferred—potentially free and clear—to your estate and then to the estate’s beneficiaries.

How much does credit insurance cost?

How much you dish out for credit insurance will typically depend on the kind of credit insurance policy, the amount of your loan or debt, and the type of credit.

“Credit insurance is sold to protect the lender more so than the borrower,” says Greg McBride, chief financial analyst at Bankrate. “As a result, pricing doesn’t tend to be as favorable to the borrower.”

Credit life insurance is usually expensive, and it’s generally more costly than a standard life insurance policy. This is especially true for younger consumers, according to the Ohio Department of Insurance, but a small credit life insurance policy tends to be more expensive than a regular life insurance plan, even for older consumers.

“By and large, particularly for people who are healthy, you can buy a whole lot more life insurance than you can credit insurance for the same amount of money,” McBride says.

This is because credit insurance is a higher-risk product, and eligibility is only based on a consumer’s status as a borrower. In contrast, the results of a consumer’s medical exam and his or her health details help to determine the price of a life insurance policy.

If you do purchase credit insurance, the policy premium is generally rolled into your loan, increasing not only your total loan amount but also how much you pay in interest over the life of the loan.

Weighing the pros and cons

If you are having trouble qualifying for a standard life insurance policy, credit life insurance may be a suitable alternative because a medical exam isn’t required.

Credit life insurance could also be a good option if you are entering a joint credit obligation with a spouse that is either a stay-at-home partner or works part time, McBride says. That way, your spouse wouldn’t be burdened by a high monthly loan payment in the event that you can no longer pay.

Additionally, McBride notes, consumers who are living paycheck to paycheck and don’t have a lot of wiggle room if they were to be unexpectedly laid off may find involuntary unemployment insurance to be a worthwhile protection.

Credit insurance isn’t for everyone

If you have enough life insurance to pay off your loan if you die before the amount borrowed is repaid, you may not need credit insurance. Your savings account—which is known as self-insurance—could also alleviate any need for credit insurance.

“Depending on your overall financial situation, you may have sufficient assets or life insurance that could cover the regular monthly obligations without having to purchase credit life insurance,” McBride says.

You could also be eligible for disability coverage through your employer, which means you would not need to invest in a costly credit disability policy. In addition, your homeowner’s or renter’s policy could provide equivalent coverage to a credit property insurance plan.

Keep in mind that lenders can’t deny you credit if you decide not to buy credit insurance or if you choose to buy it through another party. It’s also against the law for lenders to roll credit insurance into your loan without your consent, according to the Federal Trade Commission (FTC).

If you are working with a lender that says you are required to buy optional credit insurance in order to qualify for the loan, you can file a report with the FTC, your state insurance commissioner, or your state attorney general. Remember to always read the fine print before signing any loan documents.

Ilyce Glink is the author of over a dozen books, including the bestselling 100 Questions Every First-Time Home Buyer Should Ask and Buy, Close, Move In! Her nationally syndicated column, “Real Estate Matters,” appears in newspapers from coast-to-coast, and her Expert Real Estate Tips YouTube channel has nearly 4 million views. She is the managing editor of the Equifax Finance Blog, publisher of ThinkGlink.com, and owner of digital communications agency Think Glink Media. In addition to her WSB radio show and WGN radio contributions, she is also a frequent guest on National Public Radio. Ilyce is a frequent contributor to Yahoo and CBS News.

No comments yet


Leave a Comment


Name :


Commenting guidelines

We welcome your interest and participation on this forum, but be aware that comments will be published at Equifax's sole discretion. Please don't use this blog to submit questions or concerns about your Equifax credit report or raise customer service issues. Instead, you should contact Equifax directly for all such matters and any attempts to do so in this forum will be promptly re-directed.

Some other factors to consider when commenting:
  1. Registration and privacy. While no registration is required to visit our forum, participants wishing to post a message must register by creating an account. All personal information provided by forum members incident to registration is governed by our Terms of Use and Privacy Policy.
  2. All comments are anonymous. We'll delete your name, e-mail address, and any other identifying information, including details about your investments.
  3. We can't post or respond to every comment - As much as we'd like to, we can't post every comment, nor can we guarantee that we will respond to each individual message. All questions or comments about your Equifax credit report or similar customer service issues should be handled by contacting Equifax directly.
  4. Don't offer specific legal, tax or financial advice. All of the materials on this Site are for information, education, and noncommercial purposes only and this forum is not intended as a means of expressing views or ideas regarding any specific legal, tax, or investment advice. While offering general rules of thumb is both permitted and encouraged, recommending specific ideas or strategies regarding investments, taxes, and related matters is prohibited.
  5. Credit Repair. This blog is not intended as a venue for the discussion or exchange of ideas regarding credit repair or other strategies intended to assist visitors and community members improve or otherwise modify their credit histories, ratings or scores.
  6. Stay on topic. Your comment should be concise and pertain to the specific post in question.
  7. Be respectful of the community. The use of profanity, offensive language, spam, and personal attacks will not be tolerated and egregious or repeat offenders will be banned from future participation. We encourage disagreement and healthy debate, but please refrain from personal attacks on our WordPresss and contributors.
  8. Finally: Participation in this forum may be terminated by Equifax immediately and without notice for failure to comply with any guidelines or Terms of Use. As such, you should familiarize yourself with all pertinent requirements prior to submitting any response through the blog or otherwise. All opinions expressed in this forum are solely those of the individual submitting the comment, and don't necessarily represent the views of Equifax or its management.

Equifax maintains this interactive forum for education and information purposes in order to allow individuals to share their relevant knowledge and opinions with other members and visitors. We encourage you to participate in discussions about personal finance issues and other topics of interest to this community, but please read our commenting guidelines first. Equifax reserves the right to monitor postings to the forum and comments will be published at our discretion. Do you have questions or comments about your Equifax credit report or customer-service issues regarding an Equifax product? If so, please contact Equifax directly. All opinions and information expressed or shared in blog comments are solely those of the person submitting the comments, and don't necessarily represent the views of Equifax or its management.


Credit Archive