Credit Card Comparison
Explain/define the following terms:
Spending money before you actually have it.
Credit Card –
A card which you can purchase items on credit.
Annual Fee –
A fee you get charged annually (yearly) most common fee.
Interest Rate –
A proportion of a loan that is charged as interest to the borrower.
Minimum Payment –
The smallest amount of a credit card bill that someone can pay.
Grace Period –
Period of time companies give 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 they make money off interest and a lot of people now a days need to spend lots of money but they cant unless they get their paychecks, so credit card companies give you the money before you make it.
|Credit Card #1||Credit Card #2||Credit Card #3|
|NAME OF CARD||CIBC Aerogold VISA infinite card||RBC Rewards Visa Gold||Platinum Class Mastercard|
|TYPE OF CARD
(Ex. Visa, Mastercard, etc.)
|ANNUAL FEE||First: $120
Extra card: $50
|No fee||First: $150
Extra card: $40
|INTEREST RATE||19.99% AND 22.99%||19.99% and 21.99%||19.49%|
|PERKS/BENEFITS||Earn 1 aeroplan mile for every $1 spent
Earn 1.5 Aeroplan Miles for every $1 spent at gas stations, grocery stores, drug stores and on purchases at aircanada.com®3 (excluding Air Canada® Vacation packages)
Use Aeroplan Miles to cover taxes, fees and surcharges associated with your flight reward
Get exclusive Air Canada and Visa Infinite travel benefits
|No annual fee
Earn RBC points for every $1 and $2 spent
More rewards if you bank with RBC
Up to 3,500 bonus RBC rewards for going digital
Exclusive gift card redemption offer
|5000 welcome bonus points
Earn rewards faster, receive 2 points per every $1 spent on eligible purchases
3.99% promotional AIR on balance transfers for 10 months
Elite level of benefits** including MasterTrip®, MasterRental®, MasterPurchase price protection, concierge service and travel medical insurance
What card do you prefer and why? Explain in multiple sentences your reasoning.
In this case I would use the platinum class mastercard. Because it has a low interest rate and it covers medical and travel insurance, which is important because I travel a lot which also works out perfectly for this card gives travelling and air benefits.
What card do you NOT prefer and why? Explain in multiple sentences your reasoning.
Probably the RBC rewards visa gold. Because they don’t have many perks/benefits and the interest rate is very high. Even though there is no fee its not worth the high interest rate.