Financial Services _Çô Client Services RFC121 Chapter Notes - Chapter 6: Annual Percentage Rate, Effective Interest Rate, Payment Protection Insurance
26 Oct 2016
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Choosing a source of credit: the costs of credit alternatives. Avoid credit in two situations: you do not need or want a product that requires financing, one you can pay cash. Paying cash is always cheaper than credit. Some stores may even have discount for cash. Final payment date: borrowed on financial assets from lending institution. Trade off assets are tied off until the loan is paid back. Medium-priced loans: banks, trust companies, new car loans, used car loans, home improvement, credit unions. Usually sympathetic to borrowers with legitimate payment problems. Offer same range of consumer loans as bank and other financial. Expensive loans institutions: convenient, most expensive, retailers, banks through credit cards, car dealers, appliance stores, department stores, finance companies. Lend to people who cannot get credit from banks or credit unions: by law, canada no lender can charge higher than 60 percent per annum, mastercard and visa cash advance.
