Credit Card Comparison
Planning 10
Mrs. Durand

Explain/define the following terms:

Credit –

Credit is when one party lends another party money. If the second party doesn’t pay them back within the deadline. They get interest.

Credit Card –

A credit card is a card that you get from your bank. This card lends you money. The credit card usually has a limit. At the end of the month you have to pay back all of the money that you borrowed. If you can’t then you are in debt. For every month that you don’t pay back your debt there is interest. If you do pay the company back on time you usually get rewards.

Annual Fee –

An annual fee is the fee that credit card companies charge you for having the card. This can range from $15- $500.

Interest Rate –

The interest rate is when you don’t pay back the full amount of money you borrowed. The money that you still need to pay back gathers interest. The interest usually ranges from 15- 30%.

Minimum Payment –

At the end of the month you have to make a minimum payment. You don’t have to pay back the full amount every month but you do have to make a minimum payment.

Grace Period –

Is a time when no interest is charged to your credit card.

Answer the following questions.

Why would a credit card company let you borrow money?

They let you borrow money because of interest. If you don’t pay them back all of the money at the end of the month. The money gains interest. You might end up paying twice the amount of money that you started out with. They make a lot of money when they do that.

What card do you prefer and why? Explain in multiple sentences your reasoning.
I want the BMO air miles world elite mastercard. I want this card because it has the best benefits and the interest is not any different. You get air miles and cash back. It costs a lot more than the other cards but I think that it is worth it.

What card do you NOT prefer and why? Explain in multiple sentences your reasoning.
I would not want the cash back mastercard. The card is free but the benefits are not that good. I would also prefer to go on trips with my benefits, which you can do with airmiles. You can also buy other things with airmiles.