I just received an email of my first LOC approval confirmation but not sure which protection option to choose from. Do I have to choose one?. Thank you
Dear Member,
Congratulations! Your Line of Credit has been approved for $5,000.
We offer optional Payment Protection coverage available to you on your new credit line. Payment Protection reimburses payments due to involuntary unemployment, disability, or loss of life. There are eligibility requirements, conditions, and exclusions that could prevent you from receiving benefits under the program. Please be sure to read your loan documents in its entirety before signing. Specific coverage and cost is determined by the chosen level of protection as follows:
Platinum:
· Protection costs $0.25/month for every $100
· Will cancel loan balance up to $75,000 due to loss of life
· Will cancel up to 3 minimum monthly payments (per occurrence) due to involuntary unemployment
· Will cancel up to 12 minimum monthly payments (per occurrence) due to disability
Premium:
· Protection costs $0.17/month for every $100
· Will cancel loan balance up to $75,000 due to loss of life
· Will cancel up to 12 minimum monthly payments (per occurrence) due to disability
Preferred:
· Protection costs $0.09/month for every $100
· Will cancel loan balance up to $75,000 due to loss of life
The cost for each month will be calculated based on the remaining balance on the last day of each month. Example: if the loan holds a $200 balance on the last day of the month and has the Premium protection level, the cost for that month will be $0.34.
Ø Please reply back to this message to confirm acceptance of your credit line at your earliest convenience. Be sure to include the following information in the email:
· Would you like to take advantage of the discounted autopay rate? If so, include the last 4 digits of the Affinity account you authorize us to draw from.
· Would you like a Payment Protection Plan added to your loan and if so which coverage you are taking?
Once your approval and the above items have been confirmed, we will email your final documents via DocuSign for your electronic signature.
@TekkenQQ7 wrote:I just received an email of my first LOC approval confirmation but not sure which protection option to choose from. Do I have to choose one?. Thank you
Dear Member,
Congratulations! Your Line of Credit has been approved for $5,000.
We offer optional Payment Protection coverage available to you on your new credit line. Payment Protection reimburses payments due to involuntary unemployment, disability, or loss of life. There are eligibility requirements, conditions, and exclusions that could prevent you from receiving benefits under the program. Please be sure to read your loan documents in its entirety before signing. Specific coverage and cost is determined by the chosen level of protection as follows:
Platinum:
· Protection costs $0.25/month for every $100
· Will cancel loan balance up to $75,000 due to loss of life
· Will cancel up to 3 minimum monthly payments (per occurrence) due to involuntary unemployment
· Will cancel up to 12 minimum monthly payments (per occurrence) due to disability
Premium:
· Protection costs $0.17/month for every $100
· Will cancel loan balance up to $75,000 due to loss of life
· Will cancel up to 12 minimum monthly payments (per occurrence) due to disability
Preferred:
· Protection costs $0.09/month for every $100
· Will cancel loan balance up to $75,000 due to loss of life
The cost for each month will be calculated based on the remaining balance on the last day of each month. Example: if the loan holds a $200 balance on the last day of the month and has the Premium protection level, the cost for that month will be $0.34.
Ø Please reply back to this message to confirm acceptance of your credit line at your earliest convenience. Be sure to include the following information in the email:
· Would you like to take advantage of the discounted autopay rate? If so, include the last 4 digits of the Affinity account you authorize us to draw from.
· Would you like a Payment Protection Plan added to your loan and if so which coverage you are taking?
Once your approval and the above items have been confirmed, we will email your final documents via DocuSign for your electronic signature.
The short answer is no. You do not have to choose any payment protection plan. This is 100% your choice and really just like extended warranties on products. On some things, it might make sense but on most, you should never.
From how it reads, it's all optional. It asks "if" you want a protection plan, let them know. Synchrony is constantly asking if I want to add a payment protection plan to my PPMC.
Regarding LOCs in general, I'm still not 100% sure how these work. It's like a credit card but with cash and no grace period? I have a preapproval for one from Affinity, but I probably wouldn't use it. How do they report?
Thank you all for the replies, that was helpful.
@TekkenQQ7 wrote:I just received an email of my first LOC approval confirmation but not sure which protection option to choose from. Do I have to choose one?. Thank you
Dear Member,
Congratulations! Your Line of Credit has been approved for $5,000.
We offer optional Payment Protection coverage available to you on your new credit line. Payment Protection reimburses payments due to involuntary unemployment, disability, or loss of life. There are eligibility requirements, conditions, and exclusions that could prevent you from receiving benefits under the program. Please be sure to read your loan documents in its entirety before signing. Specific coverage and cost is determined by the chosen level of protection as follows:
Platinum:
· Protection costs $0.25/month for every $100
· Will cancel loan balance up to $75,000 due to loss of life
· Will cancel up to 3 minimum monthly payments (per occurrence) due to involuntary unemployment
· Will cancel up to 12 minimum monthly payments (per occurrence) due to disability
Premium:
· Protection costs $0.17/month for every $100
· Will cancel loan balance up to $75,000 due to loss of life
· Will cancel up to 12 minimum monthly payments (per occurrence) due to disability
Preferred:
· Protection costs $0.09/month for every $100
· Will cancel loan balance up to $75,000 due to loss of life
The cost for each month will be calculated based on the remaining balance on the last day of each month. Example: if the loan holds a $200 balance on the last day of the month and has the Premium protection level, the cost for that month will be $0.34.
Ø Please reply back to this message to confirm acceptance of your credit line at your earliest convenience. Be sure to include the following information in the email:
· Would you like to take advantage of the discounted autopay rate? If so, include the last 4 digits of the Affinity account you authorize us to draw from.
· Would you like a Payment Protection Plan added to your loan and if so which coverage you are taking?
Once your approval and the above items have been confirmed, we will email your final documents via DocuSign for your electronic signature.
I have a number of PLOC's and have never taken out any of those things.
I'm not saying you shouldn't; that's totally a personal call. They're a kind of insurance.
@KLEXH25 wrote:From how it reads, it's all optional. It asks "if" you want a protection plan, let them know. Synchrony is constantly asking if I want to add a payment protection plan to my PPMC.
Regarding LOCs in general, I'm still not 100% sure how these work. It's like a credit card but with cash and no grace period? I have a preapproval for one from Affinity, but I probably wouldn't use it. How do they report?
1. They report like a credit card, basically.
2. Yes there is no grace period.
3. It's not a bad idea to have one and not use it. Many people use an overdraft line of credit just as a backup in case you need to write a check some day without enough money in your checking account to cover it.
I never applied for one till it was offered to me as a pre-approval.
