4 Credit Card Services You Can Skip

Identity Theft Protection

Pickpocket thiefIf you have been a victim of fraud or identity theft on the past, this may be a very tempting offer for you. Costing between $10-$20 per month, this service will take away any responsibility on you if your card is stolen and used again.

Ironically, identity theft protection is already a benefit of owning a credit card. Ever since the Truth in Lending Act was enacted in 1968, the most a consumer could be charged is $50 for these charges if it is reported stolen immediately.

Many cards already have a built-in theft protection. If you do opt for the coverage, you will get a little more that might cover other cards or give you extra help accessing and understanding credit reports.

Related: More Banks Offer Higher Security Checking Accounts

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Missed Payment Insurance

Pay Bills MailWith this service, you pay a fee which is based on your outstanding balance. For example, a$10 charge will occur for every $200.

If you opt for this coverage you will have protection if you lose your job, fall ill, or suffer somehow, leaving you unable to pay your bill. Your payments can be delayed for a given amount of time depending on your company.

One downside to this is that it may take several months to take effect. It can also add up if nothing happens to you and you pay your bills on time.

If you are carrying a high balance every month and are worried about not being able to pay it off, it can be abetter idea to take that money and put it towards getting that balance down. This will help your credit score as well. Take the time to decide why the outstanding balance is so high and see if you can make a few cuts here and there to get it down.

Related: How To Avoid Panicking Over Letters From The IRS

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Credit Score Monitoring

Monitor SurveillanceThis is a fancy way of saying you now have access to your credit score twenty four hours a day, seven days a week. It's good to know your score, but do you need 24/7 access to it? Probably not. Instead of paying the additional fee for this service, you can access your credit report free once a year from AnnualCreditReport.com.

If you need it more than once a year, there are three major credit reporting bureaus, Trans Union, Equifax and Experion that you can pay a fee to once you've already received a free report. It may be worth the money to pay this fee when it is needed, instead of every month.

Related: Having Fewer Bank Accounts Saves You More

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Credit Score Repair Services

Fixing Building RepairThis service offers to fix your credit score by going through and making it look better, removing information that can negatively impact your credit score.

Your score is comprised of several determinants, including your balance, history of on-time or late payments, what types of credit you use, and if you have new credit cards. Your score is what it is, and no smoke and mirrors will erase past mistakes.

Rather than opt for this service, consult a certified credit counselor. They will likely focus on actions you can take that can positively affect your report and score, such as paying bills on time, keeping the number of cards you have down to a minimum, and maintaining a low balance.

Paying for this service will likely put you further into debt, so you can skip it.

Related: How To Establish Good Credit

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  • Frugal

    If you do not need it do not buy it. Pay every month. Think of it as a cash card that need to be refilled every month. If something is on sale and you carry it for a year on your card it will be 25% more. Do not buy somthing to send to the storeage unit.