DEFINITION of 'Balance Protection '

The optional coverage on an existing credit card account. Typically, the fee for the balance protection is a specified percentage of the balance on the card and is added as a fee to the monthly statement. The balance protection coverage is offered to cover minimum monthly payments (and in certain cases a higher amount) in the event that the cardholder is injured or becomes unemployed.

BREAKING DOWN 'Balance Protection '

The optional balance protection will provide minimum monthly payments to insure that the account does not become default in the event that the cardholder becomes injured or unemployed. Balance protection agreements vary from bank to bank; it is recommended that cardholders read "the fine print" to determine if the coverage would be beneficial.

  1. Cardholder Agreement

    A printed booklet a credit cardholder receives that contains ...
  2. Additional Cardholder

    An added or secondary user added to a credit card account by ...
  3. Credit Card Balance

    Credit card balance is the amount of charges, or lack thereof, ...
  4. Billing Statement

    A billing statement is a monthly report that credit card companies ...
  5. Cash Back

    Cash back generally refers to a cardholder benefit offered by ...
  6. Minimum Payment

    The smallest amount of a credit card bill that a credit card ...
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