Credit cards, more or less, have become a necessity for us. They have completely changed the way people shop. People can buy anything they desire and pay for the services or utility bills, without actually paying cash. Due to this convenience, the trend of owning credit cards is on the rise as more and more people are now getting inclined towards enjoying this utility.
The convenience, comfort, and facilities that you get with a credit card come with a cost. Credit cards, like all the luxuries and facilities we enjoy, cost us money. There are different companies in Canada offering different types of credit cards. The Canadian credit cards rates depend on their types and certain specifications.
Credit Card Rates
Apart from types and companies, some other factors also affect credit card rates. These include annual fees, reward programs, and so on. Some Canadian credit cards require users to pay an annual fee while there are other companies that do not obligate their users to do so.
The interest rates vary from company to company. It is charged on the item purchased and/or the services purchased with the use of credit card. Contrary to the popular belief, it is not charged monthly rather it is calculated on daily basis. Thus, experts believe that you should pay off the balance as soon as possible to avoid accumulating interest.
In Canada, the rate of interest, on average, is approximately 19%. However, as stated above, it varies from company to company. In some cases, it may surge up to 29.99%. It is charged on compound interest basis, which means the amount of interest is added to the amount borrowed i.e. principal amount for calculating interest. If you are a new user contemplating on the idea of owning a credit card, it is important for you to understand how credit card rates work before getting one.
Now that you have known about credit card rates, it can prove to be an easy task for you to buy the one that suits your requirements. However, basic precautionary tips remain the same. Do not overspend and maintain a safe distance from your credit limit. Keeping these factors in mind will not only be good for your credit score but also help you save money.
Loan Away benefits
Our service agents consider every application individually – for borrowers, it means a reasonable interest rate, affordable monthly payments, and no hidden fees. For small-unsecured loans, contact us in order to avoid the complicated processing of an application in banks. We can help you avoid being trapped with your debts!
Make a right decision when looking for a loan under $5000 with bad credit – small-unsecured loan from Loan Away will help you to handle increasing interests and to solve current difficulties.