Location: God's own country
Posted on: 25-10-06 12:34:32
CD's
I own a particular master card.
I was having a balance of around $ 2000 to be paid.
I then took a promotional offer of 4.9 % per year to a tune of $5000 (Amount of SI per month to be around $21).
As soon as i took it, i paid back $2500. My understanding was that $2000 of the amount would have been taken to pay back my credit balance (Which was the $2000 outstanding) and the remaining of $500 was the min. monthly balance to the loan. I was schocked to see a Intertest of $87 for that month. So what those people have done is that they took my $2500 to pay off my loan and had subjected the outstanding credit amount of $2000 to an 18.5% interest rate. This is how these people cheat in the fine print to gain money.
So my advice to desi's is :
Donot take a promotional offer with a low rate of interest on the credit cards which you would normally use to buy stuff for credit. If you do then, all the payment that you do will be taken to pay off the loan leaving all the items that you bought for credit to be subject to a 18.5% interest rate.
Remedy :
So now i have applied to a citibank master card giving a promotional rate of 0.9% till oct.2007/ What ever balance transfer that i get, I will use it to pay my high interest credit card. I will never use the Citibank master card for any transaction but will only be paying the min. reqd. amount every month.
TK A
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I am a Gents and not a Ladies.
how come u land into troubles all the times!!!
I dont understand these numbers much. I did not understand your post as well.
But for Credit I follow -
1. Don't keep too many plastics (One Master, One Visa should be enough) in your wallet.
2. Resist Shop Cards (Sears, Future Shop). I have Sears but I bough appliances worht 7k in one shot. So it made Little Sense in going through Sears Card and opting for 1 year interest free deferral payment.
3. Dont just pay Minimum Balance ... Pay complete amount.
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Mumbai Maazi Ladki ...
Yes and the golden words are to check the fine print for this MINIMUM BALANCE payment .Sometimes they take it for granted and you have to specify that you wish to pay up the whole amount if the card is linked to your chequing a/c or something.
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Fido.
TK does not land into problems but problems follow him.
He shares his experience and pitfalls which is good in a sense. Many of us may have faced similar issues but never shared it or seeked opinion. Such type of blunders are commonly done by non-accountants or non-finance guys
Why dont we share these ?? I appreciate TK that despite every odd he faces he bewares the others from making the same mistake. Its ironic though that people ridicule him ... or is it that we do appreciate him inwardly ??
Guys , I need a maiden credit card .Please advise which one should I go for - an unsecured credit card having no or minumum anual fees . I was considering TD Bank (with whom I have a chequing a/c) , PC Finanical and President Choice (is that also PC ??) .
Please recommend even if it is none of the above.
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Fido.
Location: God's own country
Posted on: 25-10-06 15:01:50
Fido,
Since you are in a job now, You should qualify for an unsecured credit card. The best that i have found is the PC mastercard. It gives you 1 % credit on all purchases that you buy that you can use at No Frills. CIBC also offers a 1% cash back card (at the end of the year).
Donot apply on line. Go to No Frills/ Loblaws (assuming that you have one in Halifax) and there will be agents to sign you on for one. You will also get a gift of a box of cookies or a large soft drink.
Even for people without jobs, PC Master card gives an Unsecured credit card. The Min. credit amount that will be given is $5000.
You can opt for many credit cards and try to play with the money got through promotional offers (Note my advise above and donot use the cards for purchasing stuff while you have taken advantage of the promotional rate offered by the same card. Also note that promotional offers have a end date and you should settle the amount before that date or you will be charged 18.5% rate from day 1.
Citi Bank master card now offers 0.9% promotional rate till oct.2007 (plus a 1% one time fee for the amount taken advantage of).
And one final advise.: Donot play with money through credit cards or do money play around with credit cards or have too many credit cards if you intend to make Canada your permanent home/ plan to buy a house. It may affect your credit history through fine prints/ carelessness.
TK A
Sidenote : PC financial master card allows an Individual to have only one of it's credit card. While i was new in canada, I used to go to Loblaws every week and sign up for a PC Financial master card. I used to get a $4 worth of cookies. And every week i used to get a rejection letter saying that i can have only one card at a time. I left the signing up due to boredom when they started subsituting $0.47 worth of PC soft drink bottle and also when the price of cookies fell to $1.97 as sign up gifts.
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I am a Gents and not a Ladies.
