Consumer Credit - Things Beginners Should Know

Oct. 14, 2011 - PRLog -- Consumer credit or consumer debt forms include credit cards, store cards, car loans, personal loans, credit lines, mortgages and retail loans. The scope of different credit types is large, even if thinking globally rather than limiting it to the Canadian market. Here is a brief overview of credit cards offered in Canada, together with an review of secured personal loan you can look into.

Credit cards include a variety of options, such as balance transfer, low interest, Personal back cards, rewards cards, business and auto/ gas cards and more. Your individual needs will determine the type of card you choose. One option is the Aspire Gold MasterCard. The benefits are many - you earn reward miles (one mile for every dollar charged to the card), 1,000 anniversary bonus points a year, 5,000 bonus points with the first purchase you make, and no annual fee. Bonuses can be redeemed for travel, Personal, merchandise, gift cards, and a variety of other items. On the downside, the interest rate, both annual and on balance transfers, is a whopping 19.80 per cent. The rate on the Platinum Plus MasterCard credit card is slightly lower - 17.99 percent annual, with 0 percent over the first 10 months. Customers who choose this credit card will enjoy the fact that it goes with no annual fee.

Another option is the Smart Personal MasterCard credit card, which is also featured with no annual fee, but the interest rate is set at almost 20 percent. Cardholders earn up to 5 percent Personal back if purchasing gas and groceries during the first 6 months and up to 3 percent on buying gas and groceries thereafter. They can also earn up to 1 percent for other net retail purchases you charge to your credit card. The Smart Personal MasterCard credit card goes with an interest rate of 1.99 percent on Personal advances and balance transfers.

Another type of consumer credit is personal loan with bad credit - http://www.yourloan.ca/loan-articles/personal-loans/. With this kind of consumer credit, you can apply for a personal loan with a fixed or variable interest rate, as well as fixed monthly payments. If you cannot make up your mind, consider the fact that with fixed rate loans, the interest rate is fixed during the loan's term. You can benefit from this arrangement, because increases in interest do not affect the loan payments. Conversely, variable rate loans can help you take advantage when interest rates are low. Your monthly payments do not change, but if the rates decrease, a larger amount of your payment goes toward the principal, thus enabling you to pay off your loan faster. Alternatively, if the rates go up, you have the option of switching to a fixed rate loan for the rest of your loan term. If you have poor credit, you can also look into a variety of bad credit loans.

Finally, mortgages are another type of consumer credit. Different mortgages are offered, including endowment mortgages, repayment mortgages, and interest only mortgages. The most common variety is the repayment mortgage while endowment mortgages are not commonly offered in Canada.

If you are interested in calculating interest on personal loans? Visit this loan guide to get more information. - http://www.yourloan.ca/loan-articles/how-to-calculate-int...

# # #

Loans Canada is dedicated to all types of loans available to Canadian residents and Canadian businesses. http://www.yourloan.ca/