University:
College of the Holy Cross
Course:
ECON 110 | Principles of Economics
Academic year:

2023
Views:

430

Pages:

2
Author:

Aliana Middleton

NAME: Calli Credit Card Comparison BLOCK: C Explain/define the following terms: Credit – the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future Credit Card A credit card is a payment card issued to users to enable the cardholder to pay a merchant for goods and services, based on the cardholder's promise to the card issuer to pay them for the amounts so paid plus other agreed charges. Annual Fee – Any fee that is charged on an annual (yearly) basis. One of the most common occurrences of an annual fee is the fee that is charged by some credit card companies to their credit card holders, simply for having the credit card. Interest Rate – the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding. Minimum paymentThe smallest amount of a credit card bill that a consumer can pay, to remain in good standing with the credit card company. Making the monthly minimum payment on time is the least a consumer needs to do, to avoid late fees and to have a good repayment history on his credit report. Grace Period – If you have a grace period, you are entitled to at least 21 days from the time you receive your bill to pay off the new balance before incurring finance charges. The payment due date must be the same every month. The credit card company cannot change it. Answer the following questions. Why would a credit card company let you borrow money? ~When you take a loan out of the bank Credit Card #1 Credit Card #2 Credit Card #3 American aeroplanplus gold card American aeroplanplus platnuim card BANKING INSTITUTION Amex bank of canada Amex bank of canada Amex bank of canada TYPE OF CARD visa visa visa ANNUAL FEE 60 120 500 INTEREST RATE 30% 30% 30% you can get air miles Every aeroplan mile is $1 card purchase No spending limit NAME OF CARD (Ex. Visa, Mastercard, etc.) PERKS/BENEFITS American exspress aeroplanplus car What card do you prefer and why? Explain in multiple sentences your reasoning. American exspress aeroplanplus card because its the cheapest and you still get 30% interest What card do you NOT prefer and why? Explain in multiple sentences your reasoning. American aeroplanplus platnuim card because it is 500 dllars alone just for the card and the interest is high but you can get the same mount with a cheaper card

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