All the credit card companies don't want you to pay back your charges. This is because they will charge a lot of interest on the outstanding balance. If you only pay the minimum amount each month, it will take more than a decade (10 years) to pay that off.
Bay Card: Read this report
https://www.personalfinancefreedom.com/top-10-reasons-to-get-the-hudsons-bay-credit-card-in-2019/
https://www.moneysense.ca/spend/the-best-store-credit-cards-in-canada/
Part D: Now, the department store cards>
https://www.capitalone.ca/credit-cards/compare/?filter=all
https://hudsonsbaycredit.capitalone.ca/credit.html
https://www.pcfinancial.ca/en/credit-cards/
Dept Store | Interest on purchases | Interest on cash advance | Annual Fee | |
Costco (Capital One) | ||||
Hudson Bay | ||||
Canadian Tire | ||||
PC Financial (Loblaw) |
So, let’s calculate how much more you will have to pay if there is an outstanding balance of $750 on your department store card.
Interest rate for outstanding balance is 26.99%.
Step 1: convert 26.99% into decimal = 26.99/100 = 0.2699
Step 2: use outstanding amount multiply by interest rate 750 x 0.2699 = $202.42
Step 3: so your $750 purchase turns out to be $750 + $202.42 = $952.42 (really expensive)
Step 4: if you still cannot pay that off by the end of the year, more interest will be added to the $952.42
Your turn to calculate the interest charges
a. iPad, $666.00 @ 30% b. Air fare, $1500 @ 19.5%
c. Smart phone, $450.50 @ 9.99% d. Chromebook $325 @ 18.88%
e. A car, $32000 @ 7.99% f. BBQ, $750 @ 29.99%
g. A bicycle $1120 @ 16.75% h. Furniture $999 @ 25.99%
No comments:
Post a Comment