Credit cards – Blog Campcee Wed, 22 Sep 2021 13:36:10 +0000 en-US hourly 1 Credit cards – Blog Campcee 32 32 Financial experts urge credit card users to switch as APR hits record 26% Wed, 22 Sep 2021 13:36:10 +0000

The typical cost of a credit card purchase outside of a 0% introductory offer has reached the highest level yet in the records of a financial information website.

Between early June and late August 2021, the average purchase APR (annual percentage rate), including card fees, stood at 26%, the highest of Moneyfacts records that began in June 2006.

The selection of lower rate cards has worsened and there have been card withdrawals as well, Moneyfacts said. The findings were released as households face a cost-of-living crisis, with multiple pressures including soaring energy prices and other costs and impending cuts in universal credit.

Moneyfacts said there have been improvements to interest-free acquisition cards, now offering 316 days at 0% on average, down from 285 days in June.

Balance transfer fees also fell to 2.1% on average, from 2.28% a year ago, and the lowest since June 2018, when the average was 2.07%.

Rachel Springall, Financial Expert at Moneyfacts, said: “The cost of a credit card purchase outside of a 0% introductory offer has hit an all-time high due to a combination of changes.

She added, “As buying interest rates rise and 0% offers fluctuate, it is important that consumers stay on top of market developments and change where appropriate. “

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These are the credit cards with the happiest customers Tue, 21 Sep 2021 19:43:50 +0000

A tip for finding the right credit card: consider one with no annual fee.

I suggest it after reading the latest JD Power Credit Card Customer Satisfaction Study. Customer satisfaction with a no-fee credit card is much higher than that of customers with annual fees. On a 1000-point scale, the no-charge cards received a customer satisfaction score of 747, while the charge cards scored 707.

Just over a fifth of card customers polled by JD Power said they changed their primary card in the past 12 months to avoid annual fees, up from 16% in 2020. The pandemic may help explain this trend – some households are in financial difficulty. and need to reduce costs, and others do not travel and therefore cannot use the rewards generated by the paid cards.

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Still, I wonder if there is anything to be said for a card that generates rewards without costing you an annual fee which typically goes up to $ 120 to $ 150 per year. Find out what’s available in the free category on websites like CreditcardGenious, GreedyRates,,, Savvy New Canadians, and Young & Thrifty.

The credit cards with the most satisfied customers come from Tangerine Bank, with a score of 822 out of 1,000. Canadian Tire and PC Financial followed with scores of 800 and 796. The industry average was 766. Give your opinion on the best credit cards in Canada by voting on the RewardsCanada website.

The biggest problem with customer service comes as no surprise – it’s poor service from call centers. JD Power said more and more card customers have noted cases this year “of being transferred, put on hold, requested multiple times for the same information, or having difficulty understanding the rep.”

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Rob’s Personal Finance Reading List

Now is the perfect time to renovate

The surge in wood prices at the height of the pandemic is over. If you waited, you win.

The best cashback sites

The Savvy New Canadians blog examines ways to make money shopping at specific retailers. Here is a similar list from

Why it’s a good thing that stock trading is treated like a game

A refreshing and contrarian take from a finance professor on the gamification of stock transactions by Millennials and Gen Z during the stock rally of the past year and a half. He argues that turning investing into a game is part of a process that will make young people better investors over time.

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Strange times in the housing market

It’s all about a land rush in Peoria, Ill., A Rust Belt town that has seen better times. People all over the United States have bought homes without seeing them. The reason: These inexpensive homes are their best chance of owning, and sometimes flipping, a home.

Ask Rob

Question: What is the cost of a financial planner? I was quoted between $ 6,000 and $ 8,000 as a base charge. I think it sounds high.

A: It sounds high, unless you have complex family estate needs – tax and estate planning, for example. While researching this column on the cost of a financial plan, I found that planners’ fees often range between $ 1,500 and $ 4,000.

Do you have a question for me? Send me. Sorry, I cannot respond to each one personally. Questions and answers are edited for length and clarity.

Today’s financial tool

US personal finance website NerdWallet has launched a Canadian operation offering beginner-friendly information on banking, mortgages, credit cards and more.

The cashless zone

Rolling Stone has updated and refreshed their list of the top 500 songs. More than half of the songs did not appear on the old list.

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Tweet of the week

Chinese real estate developer Evergrande’s debt problems rocked the stock market at the start of the week. here is a useful thread to familiarize you with the company and its current difficulties.

The truth about mortgages

What happened to these higher rates? What are the lowest rates currently? Where will they go next? Introducing Lower Mortgage Loans, a new bi-weekly take on what’s happening in the Canadian mortgage market by mortgage strategist Robert McLister. You can read the first one here.


What i wrote about
  • Canada’s first ETF designed specifically for retirees has been around for a year now – here’s what we learned
  • What Would Your Family’s Finances Look Like If You Were As Flippant About Debt As Federal Political Parties?
  • The most exaggerated warning in personal finance has been that rising rates will crush borrowers

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Even more coverage from Rob Carrick:

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SBI Cards is down as Carlyle throws stocks, but credit card industry rebounds Tue, 21 Sep 2021 06:50:00 +0000
  • SBI Cards is the second largest credit card issuer in India.
  • As of July 2021, one in five credit cards issued in India were issued by SBI Cards.
  • With the rebound in the company’s credit card business, find out what analysts have to say.

The SBI Cards share price fell more than 4% on Tuesday, September 21 after US-based private equity firm The Carlyle Group offloaded a 3.4% stake in the company, mopping up approximately 3,267 crores in markets.

The drop in the SBI Cards share price today is in line with expectations, as the Carlyle Group price range was 1,021 to 1,072. The shares were trading around 1,025 by 11:00 am on September 21.

SBI Cards share price since AugustESB / Business Insider India / Thrive

The Carlyle Group had a 15.89% stake in SBI Cards when the company was listed on the Indian Stock Exchange in March 2020. Since then it has reduced its stake on several occasions and, with the most recent sale, its stake. fell to 3.14%.

However, for existing investors in the business, good news is on the horizon.

Edelweiss analysts are optimistic about the company and its future prospects. “We view SBI Cards as a conceptual stock delivering high growth and returns from the only publicly traded player of its kind for the foreseeable future. It would thus permanently command a premium granted to a few Indian stocks ”, indicates a report by Edelweiss dated 15 September.

It’s not just Edelweiss analysts who are optimistic about the company. Here are some brokerage recommendations for SBI cards:

Brokerage Recommendation Target price Upside down
Edelweiss To buy 1350 32%
ICICI Direct To buy 1,200 17%
Motilal Oswal To buy 1,200 17%

Credit card business is rebounding

SBI Cards saw a strong comeback in the June quarter, reporting strong profit growth and lower bad debt provisions.

Here is an overview of some of the main measures of financial performance of SBI Cards:

Details June-21 Mar-21 June 20
Net interest income ₹ 924 cr ₹ 828 cr ₹ 1.138 cr
Net profit 3,046 cr 1754 cr ₹ 3933 cr
Net postcode 0.9% 1.2% 0.4%

Source: Company reports

Although its performance has still not returned to the levels of the previous year, SBI Cards recorded a substantial improvement in all three measures compared to the previous quarter.

Motilal Oswal analysts predict it will only get better from now on.

Details FY22 (est.) FY21
Net interest income 4,006 cr ₹ 3,884 cr
Net profit ₹ 1,664 cr 985 cr
Net postcode 1% 1.2%

Source: Motilal Oswal

Given that SBI Cards is the country’s second-largest credit card issuer, this bodes well for both the company and its shareholders.

SBI Cards is down as Carlyle throws stocks, but credit card industry rebounds
Credit card market share in July 2021RBI / Business Insider India / Flourish

“Spending started showing gradual improvement from June 21st. The same is expected to increase further, as economic activity picks up and restrictions ease, ”said a Motilal Oswal report dated July 24.


Collapse of Evergrande, one of China’s biggest real estate developers, ‘not a Lehman moment’, but fear could haunt India’s steel and metal stocks

SBI Cards, Adani Ports, HCL Tech, and other top stocks to watch for September 21

All the things that took Reliance Industries shares to an 11-month high and above the coveted ₹ 15 lakh crore mark

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Carlyle sells 3.4% stake in SBI Cards for $ 443 million Mon, 20 Sep 2021 19:00:21 +0000

MUMBAI : Private equity firm Carlyle Group will nearly halve its stake in SBI Cards and Payment Services Ltd by up to $ 443 million, or ??3,267.2 crore, under the terms of the deal as seen by Mint.

CA Rover Holdings, an entity of Carlyle, which held a 6.5% stake in the credit card issuer as of June 30, will sell approximately 32 million shares, or a 3.4% stake in the company, through a block operation.

Carlyle will offer the shares at an indicative price range of ??1,021 to ??1,072.3 each.

On Monday, shares of SBI Cards closed at ??1,071.70 on BSE. Shares have risen nearly 26% year-to-date.

Bank of America and Citigroup are advising Carlyle on the transaction.

This follows Carlyle’s sale of a 5.1% stake in SBI Cards for ??4,811 crore in June, while in March it offloaded just over 4% in the credit card company for about ??3,800 crore via bulk transactions. Sales of units followed the public listing of SBI Cards in March of last year.

Carlyle sold a 10% stake in SBI Cards for just over ??7,000 crore, marking the largest private equity outflow through a first sale of shares in India.

SBI Cards began operations in 1998 as a joint venture with GE Capital Corp. In December 2017, GE Capital sold its 40% stake to the state-run State Bank of India and Carlyle.

Last month, Carlyle embarked on a block transaction to sell its remaining stake in life insurer SBI Life Insurance Co. Ltd. for around $ 289 million, Mint reported.

For the quarter ended June 30, SBI Cards achieved a net profit of ??305 crore, a decrease of 22% from ??393 crore a year earlier.

The drop follows a surge in bad debts for SBI’s card business after the second wave of covid disrupted businesses in the June quarter.

Total income increased to ??2,451 crore during the quarter, from ??2,196 crores a year earlier.

SBI Cards saw its gross non-performing outstandings more than double to 3.91% of gross advances as of June 30, from 1.35% a year earlier.

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In Your Corner: What’s the Difference Between Good Debt and Bad Debt? Mon, 20 Sep 2021 09:04:11 +0000

There are many types of debt you can take on, whether it’s a new car, buying a home, getting a business loan, or using your credit card for a financial emergency.

Some debts are considered “good debt” while other debts are considered bad.

So what’s the difference? And how do you avoid bad debts?

Melissa Leong, author of “Happy Go Money,” said that good debt is debt that goes into something that will improve your financial situation in the long run, like student debt or a mortgage.

Credit card debt in Canada


Percentage of Canadians over 18 with a credit card.


Percentage of credit card holders who pay off their card each month.


Percentage that carry a balance.

Source: 2019 Canadian Financial Capability Survey

Meanwhile, bad debt is debt that does not positively contribute to your financial future and may even negatively impact your financial future like credit card debt.

However, good debt can turn into bad debt if you’re not careful, she said, and debt vehicles, including credit cards, aren’t automatically bad debt.

For example, if you take the biggest mortgage you can get and get poor, it’s bad debt, Leong said, because the cost of your mortgage prevents you from saving for other things such as your child’s retirement or education.

If you pay off your credit card every month, there’s nothing wrong with that debt.

So how do you know if you have good or bad debt?

“Every time you take on debt, it has to be part of a bigger strategy,” Leong said.

It means managing the numbers, factoring in future expenses, and not incurring debt just because you’re entitled to it.

After all, debt is still debt, Leong said – and debt is stressful.

“Your debt is still money that is taken from you every day,” she said.

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Prepayment: How to use your excess money optimally Sun, 19 Sep 2021 19:00:00 +0000 However, in the case of a car loan, it is ideal to repay with additional money as a car loan would be at a higher interest rate than a home loan without any tax benefits and, finally, a car. is definitely a depreciating asset. whereas in general a house is an asset that appreciates.

In an age when fixed income products offer lower returns and stock markets remain foamy, individuals should use their excess cash to prepay long-term debt such as outstanding credit cards, debts and loans. personal, auto and real estate loans.

Experts suggest that if an individual can generate after-tax returns higher than the current interest rate on a home loan, then they should invest in the excess money. They suggest that stock valuations are stretched and returns can be mixed and investors who start investing in stocks now shouldn’t expect much higher returns. Before prepaying loans that contribute to long-term asset building, an individual should secure sufficient emergency funds to cover expenses for one year and adequate life and health insurance coverage. If this is not done, in an emergency the person may need to take out a personal loan, which attracts a much higher rate than a home loan.

However, in the case of a car loan, it is ideal to repay with additional money as a car loan would be at a higher interest rate than a home loan without any tax benefits and, finally, a car. is definitely a depreciating asset. whereas in general a house is an asset that appreciates.

Prepaid real estate loan
As equity investments have yielded higher returns, one can record profits and prepay part of the mortgage. Experts say the ideal strategy in this bull market is to stay invested with occasional reservations of partial profits and shift some profits to fixed income or prepay loans with higher interest rates. As interest rates on home loans have fallen over the past two years, prepaying is ideal as a rise in interest rates will place an additional burden on the borrower.

Experts suggest that if individuals are unable to make a lump sum payment, they can opt for a systematic withdrawal plan from their mutual fund investments and use the monthly proceeds to increase the EMI. The EMI increase can be requested at any time and there is no charge for such a request. Additionally, for an employee, the increase in EMI helps as the borrower progresses in their career and higher compensation packages that will result in higher disposable income.

In a home loan, the interest portion is prepaid. Thus, a borrower must start prepaying a certain amount in the first year of the loan. Paying early later does not save much in terms of interest payments. Banks do not charge any prepayment penalties on floating loans and banks will accept prepayment if it is made from their own funds and as proof they will ask for a six month bank statement.

Before repaying a mortgage loan early, it is necessary to evaluate the tax advantages of the mortgage loan. The Income Tax Law provides for a tax deduction of interest in the case of self-employed up to Rs 2 lakh and up to Rs 1.5 lakh on the repayment of principal under Article 80C.

Clear credit card contributions
Any excess money must be used to pay the credit card dues. Rolling credit by paying the minimum amount owed is not a good idea as banks charge an interest rate of between 35% and 45% per annum, depending on spending, amortization and banking habits. use. In fact, rolling credit is much more expensive than even a personal loan, which can be used at 13-15% per annum.

If you have more than one credit card, you must first pay the premiums on the card that charges the highest interest rate. This will reduce the individual’s interest expense, as unpaid contributions on cards with a higher interest rate will accumulate more interest. So, once the credit card bill with the highest interest rate is paid off the excess money, it must then switch to the card with the least outstanding balance.

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BONOKOSKI: The long and sad journey with that first credit card Sat, 18 Sep 2021 22:38:22 +0000

More than half of Canadians say they are only $ 200 a month from insolvency

Content of the article

Put on the hurtful music. Take out a few fancy glasses and open the right bottle of single malt scotch.


Content of the article

Do not be shy. It’s my dream, not yours.

“So what’s bothering you?” Didn’t I hear you say.

“Hur-rump,” I finally answered.

“My left leg appears to weigh around 200 pounds. And I have to drag it.

“I walk over to that old chair in the corner to relax. Looks like the Springer and Romano duo have that game up their sleeve,

“Wake me up when this is over.”

“Who?” Someone asked me. “The ball game or the election? “

“The game, of course.

The Blue Jays have been on a roll lately, beating the hapless Orioles 6-3 with Bo Bichette scoring 5 RBIs and making him eligible for this year’s Roberto Clemente award.

They are my refuge.

Countless Canadian households were able to weather the economic blow of the pandemic last year thanks to unprecedented government financial assistance and loan deferral programs.


Content of the article

But the imminent end of such support threatens to trigger a sharp turnaround for borrowers and consumers.

We know how it works,

In the latest Consumer Debt Index poll from MNP LTD, Canada’s largest insolvency firm, just over 53% of Canadians polled said they were at most $ 200 a month from being unable to pay all their monthly bills and debts. This represents a jump of 10 percentage points from December, as well as a five-year high.

“We have seen that financial aid measures related to the pandemic have provided some leeway over the past year, but we are now seeing a reversal,” said Grant Bazian, president of MNP LTD. “The anxiety Canadians feel about making ends meet – or being unable to do so already – tells us that we could eventually see an avalanche of households falling behind on their payments or defaulting on their payments. loans, mortgages, car payments or credit cards. “


Content of the article

According to the quarterly survey conducted by Ipsos, 30% of Canadians say they are already insolvent, with no money left at the end of the month to cover their payments.

On average, respondents said they only had $ 625 left after making their payments, down $ 108 or 15% from December.

A quarter of Canadians surveyed say the pandemic has pushed them into more debt. This includes 20% who said they used savings to pay bills, 14% who took credit cards, 7% who used a line of credit, 3% who took out a bank loan, and 3% who took out a bank loan. have put off mortgage payments.

“Those who take on more debt are increasingly vulnerable to interest rate hikes in the future,” Bazian said.


Content of the article

“They might find that their debt becomes unaffordable when this happens.”

Given the low interest rate environment, six in ten Canadians said now is the time to buy things they might not otherwise be able to afford. Almost half said they feel more comfortable taking on debt than usual.

We apologize, but this video failed to load.

Yet 51% of Canadians said they were worried about their ability to pay off debts if interest rates rose, and just over 33% said they feared rising interest rates could pushes them into bankruptcy.

“Unfortunately, using credit is a knee-jerk reaction among many Canadians,” Bazian said.

“For those affected, this is probably a good time to stop thinking about debt as a solution when it can actually become a trap.”

For me, it started during the cool week at Ryerson over 45 years ago when a pretty blonde employee installed an RBC VISA card for me.

She was too young to shoot by then and has probably piloted the coop ever since.



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Take these essential steps before canceling a credit card Sat, 18 Sep 2021 15:00:34 +0000

There may come a time when you decide that you are ready to cancel a credit card. Maybe you don’t like customer service, or you’ve found a different card that better meets your needs. In some cases, canceling a credit card that you think isn’t very useful makes sense. But before you embark on this journey, here are some important steps to take.

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1. See how long the card has been open

Canceling a credit card that you haven’t opened for a very long time isn’t a big deal. But canceling a credit card you’ve had for 10 years is another story.

A key factor that goes into calculating your credit score is the length of your credit history. Keeping long standing credit card accounts open is actually good for your score, so before you cancel a card, see how long you’ve had it in your name. And consider keeping it if it can help keep your credit score intact.

2. Check if the card charges an annual fee

If you have a credit card that doesn’t work for you and comes with a high annual fee, then canceling it could make a lot of sense, even if that card has been open for a while. But if there’s no fee on hand and you’ve had it for a while, then you might as well keep that card.

And even if you do not have if this card has been open for so long, it still adds up to the total spending limit on all of your credit cards. The higher your spending limit, the more it can improve your credit score by keeping your credit utilization rate in favorable territory. This ratio measures your credit card balances to your total line of credit, and keeping that not-so-good card open means keeping the spending limit it gives you. (Plus, it never hurts to have this map handy in an emergency.)

3. If there is is fees, see if it’s negotiable

You never know when a credit card issuer may be willing to lower or waive their fees, permanently or for a period of time. Before closing a credit card, it’s worth having this conversation and seeing what your options are.

4. Make sure you have used all of your reward points

You may decide that one of your credit cards is just not worth keeping. But before you close your account, be sure to redeem any reward points or cash back rewards you are entitled to. In fact, don’t just use these perks – wait until you make sure you receive your reward item in hand or your cash back arrives in your bank account before canceling your card.

In some cases, canceling a credit card won’t really have an impact on you. But in other cases, closing a credit card account can have consequences. Before taking this step, check these key items off your list. This way, canceling your card will not damage your credit or lose the financial rewards you are entitled to.

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Apple card owners struggle to pre-order the new iPhone 13 Fri, 17 Sep 2021 15:47:41 +0000
  • Apple Card owners say they can’t pre-order the iPhone 13 with the payment method.
  • Some were forced to buy the new model on another credit card, losing 3% in cashback.
  • Apple Cards provide benefits to avid business customers who regularly purchase its products.

Apple card holders, the company’s most loyal users, are struggling to use their cards to pre-order the all-new iPhone 13.

Customers post error messages online when they attempt to checkout with their Apple Card on the company’s online store. Some said they were forced to use another credit card, losing the benefit of the 3% cash back that came with the card.

Apple did not immediately respond to Insider’s request for comment.

The Apple Card was launched in 2019 and works as a stand-alone credit card designed for use with Apple Pay and the iPhone Wallet app. The card is issued by Mastercard with a credit provided by Goldman Sachs.

Its cashback bonus and other perks have attracted the biggest fans of Apple, who regularly buy the company’s products.

The iPhone 13, announced at Apple’s virtual event this week, will begin shipping on September 24.

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]]> 0 Small Business Credit Card vs. Business Credit Card: Which Is Best For Your Business? Thu, 16 Sep 2021 15:51:00 +0000

As you grow a business, having a credit card can help you manage your cash flow, grow your business credit, access special credit card rewards, and more.

When choosing a credit card for your business, you might ask yourself which type of card is best for you: a small business credit card or a business credit card? While the two have similarities, they offer different benefits and features and are designed for different types of businesses.

Keep reading to find out what small business and business credit cards are, how they differ, and how to decide which one is right for you.

What is a small business credit card?

A business credit card is a card that helps businesses of all sizes manage their spending. Business credit cards can be used by entrepreneurs without employees or large companies with many employees and high incomes.

Business credit cards have a straightforward qualification process that typically requires business owners to provide a personal guarantee, which means they accept responsibility for the business debt on the credit card. Many business credit cards allow businesses to add employees as authorized users, as well as set spending limits and track their employees’ purchases.


The inconvenients:

What is a business credit card?

A business credit card is a card owned by a qualifying corporation or limited liability company (LLC). These cards are designed for large businesses that have millions of dollars in annual revenue, high annual expenses, and multiple employees. Business credit cards allow businesses to issue multiple employee cards and allow the business to easily track spending and set spending limits for their employees.

Business credit cards are tied to business finances. To qualify for these cards, you will need to prove that your business is creditworthy and will likely need to share financial statements to prove income, expenses, and ability to pay.


The inconvenients:

Small Business Credit Card and Business Credit Card: What’s the Difference?

There are several key differences between small business credit cards and business credit cards:


With a small business credit card, the business owner is often directly responsible for the credit card debt. This means that if the business goes bankrupt or cannot pay its debts, the business owner is responsible.

But in the case of a business credit card, the business is responsible for its debts. The business owner is not personally liable.


Small business credit cards are widely available. Anyone with a business of any size can apply, and as long as you have enough personal credit to qualify, then you can open a credit card.

Business credit cards, on the other hand, have more stringent eligibility requirements. In most cases, card issuers require businesses to have at least $ 4 million in revenue to be eligible. Some issuers may also require a certain amount of annual expenses or a certain number of employees.


Some small business credit cards charge an annual fee, but many are completely free. Even those that charge a fee are usually capped at less than $ 100. On the flip side, business credit cards tend to charge higher fees because of the extra features they offer.

Credit impact

When you apply for a small business credit card, as a business owner, the credit card issuer is likely to run your credit to determine if you qualify for the card. Plus, in many cases, the card issuer will report your business credit card activity to the credit bureaus, meaning your business expenses can impact your personal credit.

When you apply for a business credit card, the card issuer will rely on your business creditworthiness to determine if you qualify for the card. And rather than reporting your expenses to your personal credit, they’ll report them to your business credit.


Many small business credit cards come with reporting features that make it easy for business owners to track their spending and those of their employees. But these features are even more robust with business credit cards.


Many small business credit cards come with cash back rewards and travel rewards similar to what you would find on personal credit cards. These rewards allow business owners to earn extra cash and benefits over spending they already have. Business credit cards tend to offer less rewards.

Should you get a small business credit card or a business credit card for your business?

Wondering if a small business credit card or a business credit card is right for you? A corporate card can be extremely beneficial if you own a large business with millions of dollars in income and many employees. It reduces your personal risk, makes it easier to manage employee expenses, and more.

That being said, not all business credit cards are suitable for all businesses. Credit card issuers typically require businesses to have millions of dollars in revenue before they are eligible for a business card. Additionally, the advantages of business credit cards are outweighed by some disadvantages, such as higher fees and lower rewards potential. If your business has lower incomes than is typically required, only a few employees, or enjoying the rewards of your current small business credit card, a business card may not be right for you.

Small Business Credit Cards and Business Credit Cards FAQs

Does a business credit card affect your personal credit score?

No, a business credit card will not affect your credit score the same way as a small business credit card. This is because the business, not the individual, is responsible for the debt.

How do I qualify for a business credit card?

To be eligible for a business credit card, your business must be both legally and financially established. They are often only open to businesses with millions of dollars in revenue and a satisfactory business credit history.

What’s the best small business credit card?

There are many credit cards that small businesses can choose from to help them manage their cash flow. Check out our roundup of the best business credit cards on the market right now to help you choose the right one for you.

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