Interest rates

Let's not get this thread locked , but I was interested in opinions. Keep your blood pressure under control ;)

disclaimer : I am not intelligent about economics.

#1
I've been looking at interest rates due to the following:
The bank debited my credit card account for $45.00. When I talked to them about it , they said they were raising the interest rate on the card for new clients to 19 % , and if I wanted to keep my 10% rate I had to start paying an annual fee of $45.00
Something about this annoys me. When I signed up for the card MANY years ago it was 10 % - no fee. I thought it was a contract we had ?

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#2

I don't run a debt on any of my cards/accounts but checked out what the interest rate was on my personal line of credit. It is " 2% monthly or $50.00 - whichever is greater." What??!!

If I owed $60.00 I would pay $100.00 interest over a 2 month period.. Whatt????!!!

That means that if I carried a $1000. balance for a year, and only paid the minimum fee. I would be paying $600.00 that year in interest for a $1000.00 loan . That's 600 % interest. What ???!!!

Tell me math is wrong and it is not this bad. :)

The banks will really screw long time customers because they know 95% are too lazy to do anything about it. Time to shop around.
In other news, there's at least one small bank in the oil patch so desperate for customers they're now offering the most qualified homeowners NEGATIVE interest rates on new mortgages.

the annual fee on a low interest credit card is pretty much standard... the line of credit, well that seems steep... are you sure it said greater? mind ya 2% interest is pretty good, im 6.5% on my line of credit...

The amount on the Line of Credit sounds like payment not the interest, you should check it. The 19% is common but you can get no fee cards everywhere.

Bank of Montreal changed our account recently and what I thought was the minimum was suddenly 50% higher and I got a ton of service charges for two months before I caught it. Between that and this other deal with their forming a group with policies in violation of the Human Rights Charter (let's not get that started) I am shopping around.

Bank of Nova Scotia or the local Credit Union look like the best and aren't in the BMO discrimination group. As for the Credit card the Canadian Tire money back card, the Credit Union has a Master Card and BNS Visa with different options. American Express isn't accepted at some places but let's me keep my airmiles.

I have been busy and am not sure that these will be useful but these tabs are open in another window and it might be a start.

Canadian tire refund (they also have Canadian Tire "cash")
https://www.ctfs.com/Products/Credit...ageMasterCard/
Bank of Nova Scotia
http://www.scotiabank.com/ca/en/0,,36,00.html
Credit Union
http://www.choicerewards.ca/cards/co...ards/index.jsp

http://duca.com/myMoney/Listing/Loans/MasterCard


Some of the discussion on Credit cards etc. came up on this thread on saving money.
http://ontariofishingcommunity.com/f...howtopic=77701

That's interesting because it is the Bank of Montreal that sent me the letter.

fishy Steve: that what it says : " 2% monthly or $50.00 - whichever is greater"

mosquito: that is the interest

"The 19% is common but you can get no fee cards everywhere." I know this but we had a deal for 10 % and no annual fee . I didn't realize they could change the terms whenever they wanted. What really bugged me is that they just did it - took out the annual fee. No notice , nothing. I could have not even noticed it.

I will look over the links. Thanks.

What do you get back from the card asides from the lower interest rate if you need it? it doesn't sound like you need that specific card. Maybe find a new card that pays you. I like you don't carry debt on cards. I use PC Mastercard and get free groceries from time to time but I'm thinking of switching to a travel rewards card.

They probably did notify us.....maybe... one line on the back of a statement or bill at some point. Sort of like the small print, if you don't see this and don't scream... (using a childish voice) we are going to screw you. (na na na voice).

If you pay off the credit card each month the airmiles or refund no fee cards seem like the best to me. I use an airmiles card AND American Express airmiles card and using the coupons they send the points add up. Every 95 miles allows you to save $10 so I use the card for almost everything I can and just pay it off as soon as I get the bill.

Sharon,
My take on it. If you don't carry a balance on your credit card switch to a no fee card. You can shop around and see what cards offer things you may find useful. Some offer rewards (air miles, cash back, groceries, CTC money) some give you things like common carrier insurance on travel purchased on the cards, insurance on rental cars and other "perks".

On your Line of Credit I highly doubt that is the interest rate. That looks to me like the minimum monthly payment. If you owe $100 your minimum payment will be $50 not $2 this month and your balance next month will be $50 (roughly...it will be slightly higher...maybe a buck or 2 as some of the $50 payment will go to interest and the rest on your principle.)

FW

Right . I forgot about subtracting the 50 paid. Thanks. I will look into a no fee card.

ya payment makes more sense i.e if your balance was $5000 your minimum payment would be $100 (2% of 5000)