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 plastic card issued by a bank, business, etc., allowing the holder to purchase goods or service on credit.
Annual Fee –
any fee that is charged on a yearly basis
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
Grace Period –
is the time during which you are allowed to pay your credit card bill without having to pay interest.
Answer the following questions.
Why would a credit card company let you borrow money?
a credit card company would let you borrow money because they are making money by charging you interest
| Credit Card #1 | Credit Card #2 | Credit Card #3 | |
| NAME OF CARD | American Express AIR MILES Credit Card | BMO Air Miles Master Card | Student CHOICE REWARDS MasterCard |
| BANKING INSTITUTION | Amex Bank of Canada | BMO Bank of Montreal | The Toronto-Dominion Bank |
| TYPE OF CARD (Ex. Visa, Mastercard, etc.) |
Credit Card | MasterCard | MasterCard |
| ANNUAL FEE | No fee | No fee | $24.00 |
| INTEREST RATE | 19.99% | 19.99% | 19.49% |
| PERKS/BENEFITS | -Shopping Coverage
-Entertainment Access |
-Earn Air miles rewards
-anything you buy with the card doubles the manufacturers warranty period -items bought with the card are automatically insured against theft or damage
|
-cash back
-Miles/points redeemable for travel, general merchandise, prepaid gift cards, vehicle rentals, and charitable donations -travel accommodations of all types, vacation packages, cruises, etc. |
What card do you prefer and why? Explain in multiple sentences your reasoning.
I would prefer to have the Student choice rewards MasterCard because although you have to pay a small fee to begin with it offers money back. I think it is very helpful that the money you spend using the card can be redeemed as points towards a variety of very many different things.
What card do you NOT prefer and why? Explain in multiple sentences your reasoning.
I do not think I would prefer to have the BMO air miles MasterCard because usually for me the manufacturers warranty is enough and I like to keep my belongings in good condition so for me it is unnecessary. Although I like that things you buy with the card are insured against theft I would rather take the American Express Air Miles Card because as a young person just out of high school I need a card that will be good for my lifestyle.