Any contract you enter into for the use of a credit card or line of credit must indicate the credit rate. This rate indicates the applicable credit charges based on your use of the credit. Credit charges include all of the amounts you have to pay in addition to the amount borrowed. This is what it costs you to use the card.

Among other things, credit charges include:

• interest;
• the premium for an insurance contract taken out through the merchant;
• the rebate;
• the commission.

Calculating the credit charges: purchases

When you reimburse your account balance in full before the payment due date indicated in your statement of account, you do not pay any credit charges, other that for cash advances.

However, if you do not pay your debt in full, credit charges will apply. These charges are calculated from the date of the end of the preceding period.

Refer to the page titled Minimum Payment: Maximum Intere$t to find out the amounts that apply to your situation or to try a simulation.

Difference between a cash advance and a purchase

What happens if you use your credit card to get a cash advance? A cash advance is different from a credit card purchase. It is an amount of money that you are withdrawing from your card. In that case, the credit charges are calculated as of the date the cash advance was taken. This means that fees will be charged for this loan, even if you reimburse it in full by the due date.

Credit rate increases

A financial institution is allowed to increase your credit rate. To do so, the institution must send you a notice at least 30 days before the increase comes into effect.