amazon store card synchrony credit card security payments

[Anonymous]

Hi I had added credit card security to my amazon store account. Supposedly if you make a claim of unemployment etc.. they will pay your monthly payments. However, I am now wondering if I were to take advantage of this offer is this going to wind up red-flagging my credit report that I'm unemployed (thanks covid) and suddenly I'll have all my cards canceling me or lowering limits? or at least those controlled by synchrony which would be amazon store and Paypal?

[FinStar]

Hi @Anonymous and welcome to the forums.

Sorry to hear about the recent hardship with the job loss.  The credit insurance product has some terms and conditions whenever a situation like yours arises so be sure to get clarification from them on the coverage and its stipulations.  

Your credit reports should  not be flagged with any remarks associated with your unemployment.  More or less, this is documented internally once you elect to use those benefits.  As long as everything is followed accordingly when filing the claim, your payments should report and reflect on time, be sure to monitor and stay on top of things.  Is the PayPal account also enrolled?

[Shooting-For-800]

Generally, one is better off saving the money they would have spent on cc insurance.