CU TIP: Credit Card Conundrums

Did you know?

• Hidden conversion fees: Are you aware that credit card companies charge a “currency conversion fee” when you make purchases outside Canada, including purchases made online? This is in addition to the currency exchange rate and it is not usually itemized on your statement. Before your next vacation, you may want to check with your credit card company to see if their “currency conversion fee” is competitive.
• The problem with partial payments: Even if you make a partial payment on your credit card balance from the month before, you will still be charged interest on the full amount if you don’t pay off every last penny.
• Paying the minimum leads to paying the maximum: If you have $10,000 on your credit card at 18% and just pay the minimum each month, it would take you 23 years to pay off that debt!