Tim's Credit Card

[GreyGhost]

Best way it was simply explained to me is ‘remember…if you miss a payment the interest doesn’t accrue from due date of payment. It accrues from date of purchase.’

That opened my eyes.

Same as interest accrues from day of withdrawal, not from credit card invoice date.

Haven't carried a balance since. Maybe paid $150-200 in interest on credit cards my whole life.

LOC for this home Reno is a different story!

Also, if you underpay, interest is due on the entire amount. Owe 4100 and pay 4099 and you pay interest on 4100. Ouch.

 

[mimico_polak]

Also, if you underpay, interest is due on the entire amount. Owe 4100 and pay 4099 and you pay interest on 4100. Ouch.

Yes! I forgot that little nugget also!

The problem is the banks don't explain those things to you...but they're in the fine print. Not sure about everyone here, but I sure as hell don't read all the fine print.

 

[Jampy00]

Yes! I forgot that little nugget also!

The problem is the banks don't explain those things to you...but they're in the fine print. Not sure about everyone here, but I sure as hell don't read all the fine print.

The banks obligation is to provide the fine print, it is the consumers obligation to either read and understand it or realize the consequences for not doing so. Not saying it is right, just "the way it is", it is a predatory system that usually gets younger people introduced to a lifetime of debt with little no understanding of how they got into it or how to get out of it, they just tend to blame the "big banks" for their financial pitfalls and keep making minimum payments.

 

[mimico_polak]

The banks obligation is to provide the fine print, it is the consumers obligation to either read and understand it or realize the consequences for not doing so. Not saying it is right, just "the way it is", it is a predatory system that usually gets younger people introduced to a lifetime of debt with little no understanding of how they got into it or how to get out of it, they just tend to blame the "big banks" for their financial pitfalls and keep making minimum payments.

Agree. Not the banks fault I choose not to read the fine print. But it’s easier to blame the bank than take ownership for our lack of care.

 

[nobbie48]

Best way it was simply explained to me is ‘remember…if you miss a payment the interest doesn’t accrue from due date of payment. It accrues from date of purchase.’

That opened my eyes.

Same as interest accrues from day of withdrawal, not from credit card invoice date.

Haven't carried a balance since. Maybe paid $150-200 in interest on credit cards my whole life.

LOC for this home Reno is a different story!

"No payments for two years" means you can bank the money, collecting the interest, for two years BUT it is from the date of the sales contract, not the day the furniture was delivered. They can be many months different and the rate atrocious. You saved a few percent in taxable interest but have to pay 60% in after tax income.

The charges go back to the contract date and the debt has been sold to a private lender. The friendly sofa salesman can sympathize but can't lift a finger (but he knew).

 

[Ash]

The fine print is intentionally difficult to read. Estimates on literacy vary wildly depending on the source, but something like 24% of adults in Canada are functionally illiterate, and something over 40% score in the lowest two levels of literacy. Those folks are at a distinct disadvantage with the way the information is presented.

Literacy - Wikipedia

en.wikipedia.org

 

[Mad Mike]

My understanding is this is partially correct. The balance is a claim against the estate, if the estate has no assets, the balance is uncollectable and goes away. If the estate has assets, my understanding is it has to settle liabilities prior to distribution to heirs.

Outstanding credit balances are charges against the estate and must be settled before assets are distributed - including credit cards. The only exception is a joint card (a card with a co-applicant, co-borrower, or co-signer), that balance may be excluded from the estate becoming debt to the joint card holder. This does not happen to additional cardholders as they have not agreed to be liable to the bank.

One cannot use a deceased persons credit card. If they do, the debt will be charged to the estate, but the estate can charge those who used the card.

 

[Mad Mike]

Yes! I forgot that little nugget also!

The problem is the banks don't explain those things to you...but they're in the fine print. Not sure about everyone here, but I sure as hell don't read all the fine print.

That's not part of the fine print. Banks make it clear 'balance in full' to enjoy the interest waiver.

 

[Mad Mike]

used 'properly' a credit card is a true gift, my BMO world elite gets me travel ins./ flight cancelation ins/ often an upgrade on rental cars . Sometime hotel discounts. My cashback VISA gets me cashback on groceries and fuel.

I use my CAA card and get a three cent discount, then pay VISA and get cashback , using the cards for work my monthly expenses are often in the 5-8k range , and I collect all the points . It helps

I used to deal credit cards... my advice was to have 2 and sometimes 3.

1) Primary Card. Find the highest tier card you qualify for and get that card. These generally come in 3 tiers:

• Basic rewards card that gives you cash or points. These tend to be beginner cards, no annual fee, basic insurance benefits, credit limits of $2000 or less and deliver rewards worth about 1% of spending.
• Premium card - Mid tier cards best for those spending up to $2500/mo on credit cards. qualification is usually $60K income and $5K credit approval. $100-200 annual fee, enhanced benefits, may have perks like gas discounts, rewards about 2%.
• Privilege cards - Top tier cards, best for those spending more than $2500/mo on credit cards. Qualification is usually $150K personal or $200K combined income and $25K credit approval. $300-1000 annual fee, enhanced benefits usually focussed on travel and insurance, may have additional convenience perks such as early access to event tickets, airport lounges, and free hotel/car upgrades. Rewards about 2.5%. TIP: You can qualify for these cards if you have a spend of $25K/year and do not meet the income minimum. Great for sales reps and others who use their cards for a lot of company-reimbursable spending.

2) Low interest card. Credit companies offer low interest cards. These usually have no annual fee, or interest discount of 8-10% over a regular card. This is the card to own if you carry a balance as the discount in interest is 3x the value of any perks/points/cash back you get on a rewards card.

3) US Dollar card. Most banks offer a no fee no perk US Dollar credit card. Using a card denominated in CAD when paying in USD, costs you at least 5%, often more in fees and FX. This is double the perks/points/cash back you get on a rewards card.

 

[Mad Mike]

I hope somebody from a bank chimes in , this is the second time I have heard about this , Bob had several million in assets , the CCs apparently went away .


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I used to deal with this at the bank. Upon death, all debts are settled from the estate first. Whatever is left gets distributed according to the deceased's will or a probate court order.

If Bob's millions were joint with a survivor, the survivor gets those assets, no claim can be brought against them by creditors. In this case his personal estate may have been insolvent -- creditors get left behind while his wife enjoys the millions.