HomeMy WebLinkAboutThe Lucknow Sentinel, 1988-12-14, Page 15Use credit cards
carefully for Christmas
The saying goes that it is better to give
than to receive. During the holiday
season many Canadians use their credit
cards to purchase gifts, but Consumer
and Corporate Affairs Canada tells us
that if you are giving without knowing it,
that's another matter. This can happen if
someone charges purchases to your
credit card account without your permis-
sion, or if you don't fully appreciate the
interest costs charged for using your
credit card.
Recently, the Minister of Consumer
and Corporate Affairs, Harvie Andre, an-
nounced that his Department would begin
providing Canadians with regular infor-
mation on the cost of using their credit
cards. "Most consumers do not know the
real cost of using credit cards and end up
paying more than they should."
Since the Minister's announcement the
Department has published a brochure,
"Choosing a Credit Card - Tips to
Remember," sponsored a federal/provin-
cial discussion paper on credit card in-
terest charges, and released regular
bulletins on credit card costs. More
recently, the Minister announced a joint
industry and government initiative to
distribute information to consumers on
how to protect themselves against credit
card theft and fraud.
Most of us are aware of the potential
cost of losing a credit card. But what
about'the costs of using one? Did you
realize, for example, that when you pay
only part of your bill, you are generally
charged interest on the full amount?
(Some department stores will subtract
the amount of your payment before
calculating interest if you pay more than
half the amount.) Also, most credit card
companies such as VISA and Mastercard
charge interest from the day you make
your purchase. Department stores, on the
other hand, start the interest clock tick-,
ing at the date of your monthly
statement.
Thus, the way interest is charged on
department store cards may offset their
higher interest rate of typically 28.8 per-
cent. This would be the case if you pay
off your Christmas purchases within a
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few months. (Typical rates for VISA and
Mastercard range from 17.25 percent to
18.9 percent.) Of course, you can avoid
interest charges entirely if you pay the
full balance within the "grace period."
This begins at the date of the monthly
statement and is usually 30 days for
department store cards and 21 days for
VISA and Mastercard. Otherwise, be
aware that your credit card is a relati< <-
ly expensive source of credit.
Some cards have additional charges
such as transaction fees or annual fees.
You can save on credit card costs by
keeping well informed about the terms
and conditions that apply to the cards
you use. This information is provided
with your monthly statement, and you
can contact the credit card issuer to
clarify any aspects that you find
confusing.
To avoid being the victim of credit card
fraud, here are a few tips to keep in
mind.
•Examine each sales draft before sign-
ing it to ensure that your receipt includes
the total amount of your purchases, in-
cluding taxes, so that additional amounts
cannot be added later.
•Avoid signing blank sales drafts and
make sure that an incorrect draft is
destroyed. After every purchase, destroy
your carbons to prevent others from us-
ing information obtained from the carbon
paper.
•Some individuals may take offence
when a salesperson checks the signature
on their card against the sales draft. But
this is done for your protection.
•Watch your card after giving it to a sales
clerk, and check that the card you get
back. is your own. It is easy for sales
clerks and waiters to give you the wrong
card when they are in a hurry.
•Keep all sales receipts and check
them against your monthly statement.
Report any .discrepancies immediately-.
•If your credit 'card is Lost or stolen,
report it to the card issuer immediately. '
If you find it after reporting it lost or
stolen, notify the card issuer before you
use it again.
Lucknow Sentinel, Wednesday, December 14, 1988—Page 15
BARRY W. REID B.A.
CHARTERED ACCOUNTANT
•Financial Accounting
•Audi'
• Personal & Corporate Tax Consultation
•Personal Financial Planning
•Manual & Computerized Bookkeeping
•Mortgage & Amortization Schedules
306 Josephine St. Winghal NOG 2W0 Office: 357-1522
LUCKNOW
BUSINESSES
will be open
EVERY EVENING
Monday, December 19th -Friday, December 23rd
'TIL 9:00 P.M.
For your shopping convenience
PLEASE NOTE: Businesses will be closed
Monday, December 26 & Monday, January 2
Some businesses will close
Tuesday, December 27th
Applies to full -frame negatives.
Luck now
C41
110 1?6 135
& DISC ONLY
SPECTRUM makeo a Pax ote, 4i cx
Prices in effect December 19 -24/88
UMBACH PHARMACY
528 3004
ar
c'7)
•
WEEKDAY
•MORNINGS
6:00
to9:00
•