I’ve had a Discover credit card since 2000 and have always seen this recurring charge on my monthly statements called “CreditSafe Plus Insurance”. It’s not a large amount – but a pesky recurring charge that fluctuates based on my balance that I carry each month (and if you are not a Discover Card owner – feel free to carry on with your other daily blog reading).
Note: I’m not a big advocate of credit cards. But, I believe they can certainly work to your advantage at times when you don’t have cash on hand or you are making a larger purchase. I use my Discover Card from time to time for such purposes – but always pay it off at the end of the month (I hope you’re doing the same!) If you’re familiar with Three Thrifty Guys – you might know that I ran into some trouble with credit cards early on in my life – and it was no picnic. That’s one the of the reasons I co-founded this site – to help others not make the same mistakes I did.
So, back to this recurring charge on my Discover Card. It’s really important to check your monthly credit card statements as a fee or surcharge can appear out of nowhere. There is actually a settlement you can take advantage of if you were charged a payment protection plan fee or credit score tracker fee from 2004-2011 – even if you opted in for it. So, Discover has been in a little hot water due to some of their practices. Just be aware.
I called up Discover and it took about 5 minutes to get to a person who could actually answer my question about CreditSafe Plus. It turns out this is an optional fee that I opted in for when I signed up for the card. This is another thing to be alert about when you are getting new credit cards. You may be opted in – knowingly or unknowingly to services / fees associated with the card. It’s been over 12 years since I signed up – so I can’t remember if I did or didn’t.
Just know that you do not need to be enrolled in the service. CreditSafe Plus insurance exists to provide coverage for your account in the event that any of the following happens:
- You lose your job at no fault of your own
- You become disabled
- You pass away
If any of these transpire, the insurance will cover your monthly minimum payments at no cost to you until you get a new job, become un-disabled OR you reach a lifetime max of $10,000.
I actually used the service back in 2001 when I became unemployed and started racking up some credit card debt. Fortunately, it paid off then – but it wasn’t without some hassle.
You can opt out – if you are currently enrolled – by calling them direct at 1-800-453-0280. My recommendation is that you probably don’t need this service if you are current with your balance and pay it off every month.
I hope that helps – have you had any experience with CreditSafe Plus Insurance?
Update 12/6/17: Given the recent news of hacks and online identity thefts, Discover is offering free social security alerts through their cards. You can learn more about the offer here.
Update 3/24/2020: Discover has replaced this program with Discover Payment protection. To change your plan (or cancel either plan), call 1-877-883-1959.