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Credit Cards

Statistics Credit Card 1 Credit Card 2 Credit Card 3


American Express Aspire Cash BMO Air miles
Platinum world elite
MasterCard MasterCard
Annual Fee No annual fee No annual fee $120
Grace Period 21 Days 25 days 21 days
APR 19.99% on 19.8% 19.99% on
purchases and purchases, fees
22.99% on funds and other charges
advances and 22.99% on
cash advances and
balance transfers
Credit Limit $15,000 $2,500 $25,000
Finance Charge 2.9% 3.3% 2.7%
Method of Payments and Payments and Payments and
Calculating Purchases made Purchases made Purchases made
Finance Charges on the card on the card on the card
Transaction Fee No transaction fee No transaction fee No transaction fee
Fees for Late 23.99% and/or $29 charged once $29.00 overlimit
Payment 26.99% if your account fee & $48.00 fee
balance exceeds charged for each
your credit limit at dishonoured
any time during payment
the billing period.
Other Features 1 reward point for 1% cash rewards Earn 1 reward
every $15 spent on all purchases mile for every $10
(Air Miles) in credit card
purchases
1. Which credit card has the highest annual percentage rate and how much is
it?
The BMO Air miles world elite MasterCard and American express card both have
19.99% on purchases, fees and other charges but BMO has 22.99% on cash
advances and balance transfers while American express has 22.99% on funds
advances.
2. What method is used to calculate the monthly finance charge for the first
major credit card?
The method used to calculate the finance is the payments and purchases made on
the card.
3. When does the finance charge begin to accrue on the credit card from the
local department store?
The finance charge accrues on the credit card with the payments and purchases
made on the card.
4. Do any of the cards have annual fees? If so, which one(s) and how much is
the fee?
The BMO Air miles world elite MasterCard has an annual fee of $120.
5. Is there a transaction fee on any card? If so, how much is it?
No transaction fee on any of the cards.
6. Is there a minimum finance charge on either of the major credit cards? If
so, how much is it?
The minimum finance charge is 2.7% on the BMO Air miles world elite
MasterCard.
7. Does the first major credit card charge a fee for late payments? If so, how
much is it?
The BMO Air miles world elite MasterCard charges $29.00 over limit fee and a
$48.00 fee charged for each dishonoured payment.
8. What is the grace period on the credit card?
American Express = 21 days, Aspire Cash Platinum MasterCard = 25 days, BMO
Air miles world elite MasterCard = 21 days.
9. Rafael wants to buy a new CD player that costs $450. According to his
budget, he can afford payments up to $62.00 per month. Which of the three
credit cards youve found would you recommend that Rafael use to purchase
the CD player? Why?
I would recommend the Aspire Cash Platinum MasterCard because it offers 1%
cash rewards on all purchases and Rafael can afford to pay higher than the
minimum payment which is very beneficial. Also there is no annual fee and a low
credit limit which is great for 1st time credit card users.