Loans Canada Launches Free Credit Score Portal And Is Recognized As One Of Canada’s Top Growing Companies
Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
Credit cards make shopping convenient, especially with paper money on the steady decline. In fact, about 95% of Canadians own at least one credit card and there are over 75 million Visas and Mastercards active nationwide.
However, about 70% of Canadians pay full monthly balances. That means 30% are carrying credit card debt. Plus, many cards have unaffordable costs, which might make you wonder if your credit card company is actually taking advantage or you.
Most credit card companies offer legal products and aren’t out to scam you (not in the conventional sense). Nevertheless, they have many ways of making money off you, like:
To hook you, some credit cards come with promotions of “0% interest” or low rates for limited periods. Sounds like a decent deal, right? But there are certain conditions that come with these 0% APR offers that can make it more risky than beneficial.
Here are some aspects of the 0% APR that can make your situation more expensive and the credit card companies more profitable:
Some credit cards come with periods where interest is “deferred” for several months. Similar to interest-free credit cards, this theoretically means that you’ll only pay your normal rate when your grace period ends. However, this isn’t always the case. There are certain conditions you must meet in order to enjoy the benefits of this deferred interest offer. If you fail to meet them, then you’ll be on the hook for all the interest you accrued during the interest deferral period.
Credit card companies can also catch your eye with rewards cards, which have various benefits. Financial institutions are particularly good at pushing these cards on their clients. Sadly, those benefits may not be worth it.
Find out if credit card rewards are worth it.
Because some rewards cards come with restrictions, your rewards may not be as valuable as advertised:
Check out how you can earn extra cash back using Ampli.
Most credit card companies are allowed to lower your credit limit for whatever reason. Generally, it’s due to low usage, a high balance, or too many late payments.
As mentioned, some credit cards come with hefty fees for late payments and balance transfers. While such fees might seem reasonable at first, they can add up quickly and increase your monthly balances. The balance transfer, in particular, can totally offset the savings from using a balance transfer.
Due to all the fees charged by these credit card companies, the benefits you gain from owning a credit card can decrease in value. When opting for a certain credit card offer, but sure to consider all charges including:
Before you buy any type of credit card, read the terms and conditions carefully to find out every cost that could come your way after you start spending. Remember, while credit card companies offer useful products, they aren’t looking out for your best interests.
Rating of 5/5 based on 2 votes.
Save time and money with Loans Canada. Research and compare lenders before you apply. Share your experiences with Canada's top lenders.
Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
New Offer! Get up to $2,000 cashback + a $50 bonus on signing up. Conditions apply.
Earn an average 5%¹ cash back at thousands of partners and at least 0.5%² cashback guaranteed.
With KOHO’s prepaid card you can build a better credit score for just $10/month.
All consultations and conversations with Loans Canada and its partners are confidential and risk-free. Speak with a trusted specialist today and see how we can help you achieve your financial goals faster. Loans Canada and its partners will never ask you for an upfront fee, deposit or insurance payments on a loan. Loans Canada is not a mortgage broker and does not arrange mortgage loans or any other type of financial service.
When you apply for a Loans Canada service, our website simply refers your request to qualified third party providers who can assist you with your search. Loans Canada may receive compensation from the offers shown on its website.
Only provide your information to trusted sources and be aware of online phishing scams and the risks associated with them, including identity theft and financial loss. Nothing on this website constitutes professional and/or financial advice.