Month: December 2016

Credit Card Comparison
Planning 10
Mrs. Durand

Explain/define the following terms:

Credit – The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.

Credit Card –

A small piece of plastic issued by a bank, business, etc., allowing the holder to purchase goods or services on credit. Also it is primarily used for short-term financing.

Annual Fee –

A credit card annual fee is a fee automatically charged once a year to your credit card account for the convenience of the credit card

Interest Rate –

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding

Minimum Payment –

The smallest amount of a credit card bill that a consumer can pay, to remain in good standing with the credit card company.

Grace Period –

the period of time a credit card company gives you to pay your new charges, without having to pay interest on the new balance

Answer the following questions.

Why would a credit card company let you borrow money?

Because there are fees which you need to pay which makes the company a profit. Also when you don’t pay your bills, you pay an interest which makes them tons of money. Basically they make profits off people who apply for their company.

	Credit Card #1	Credit Card #2	Credit Card #3
NAME OF CARD	CIBC Aventura® Visa* Student Card	CIBC Dividend® Visa* Card	CIBC TELUS Rewards® Visa* Card
BANKING INSTITUTION	CIBC	CIBC	CIBC
TYPE OF CARD (Ex. Visa, Mastercard, etc.)	Visa	Visa	Visa
ANNUAL FEE	$39.00	No fee	No fee
INTEREST RATE	Purchases – 19.99%             Cash – 22.99%	Purchases – 19.99%           Cash – 22.99%	Purchases – 19.99%          Cash – 22.99%
PERKS/BENEFITS	– Out-of-Province Emergency Travel Medical Insurance covers the primary cardholder, their spouse and dependent children for the first 15 days of a trip if the covered person is age 64 or under   – Auto Rental Collision/Loss Damage Insurance   – $100,000 Common Carrier Accident Insurance   – Purchase Security and Extended Protection Insurance	– Want to earn cash back on every purchase, with no limit on the total cash back you can earn   – Don’t want to pay an annual fee   – Would like the added benefit of replacements for lost, stolen or damaged items with Purchase Security and Extended Protection® Insurance   – Have a minimum household income of $15,000	– Are a TELUS® Mobility account holder or subscriber with an eligible service and want to earn points towards select TELUS products and services   – Enjoy car rental discounts at participating locations worldwide   – Don’t want to pay an annual fee   – Have a minimum household income of $15,000

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What card do you prefer and why? Explain in multiple sentences your reasoning.

I prefer the CIBC TELUS Rewards Visa Card. I prefer this card because it offers many TELUS deals and products which can benefit you. Since I have TELUS as my Wi-Fi-network, I will obtain free goods and sales for items such as car rentals, TVs, etc. Also you don’t have to pay an annual fee which can save you decent money.
What card do you NOT prefer and why? Explain in multiple sentences your reasoning.

The card I don’t prefer is the CIBC Dividend Visa Card. I do not prefer this card because the benefits of this card aren’t that great, and there aren’t many benefits. Even if there isn’t an annual fee, you still don’t make profit from it. The interest rate is the same as others.