Quick Credit Cards

A: If you’re not familiar with payment protection, it’s an insurance-like benefit that Capital One and many other credit card companies offer. The exact coverage varies by issuer, but in a nutshell, what it usually offers is the ability to cancel or defer minimum payments in the event of disability, job loss, and other life events. Some plans will also cancel a balance if the cardholder dies.

This optional plan usually costs around 1% of your monthly balance, give or take a few pennies. The Capital One credit protection fee is $0.99 per $100 of the balance on each statement’s closing date.

That may not sound like a lot, but you have to remember that you are paying it 12 times per year. And even if you pay your credit card bill in full, you are still charged the fee since it is calculated using the amount on the statement’s closing date.

So let’s say for 12 months in a row your statement balance was exactly $1,000… That equals $118.00 in fees! Or if you w

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