Borrowing money, or purchasing goods or services on credit, involves costs. Usually, the longer the term to reimburse the merchant, the higher the costs.

Credit charges

Credit charges include all of the fees you will have to pay, in addition to the amount borrowed or the amount that is financed. Credit charges include interest, administration fees, brokerage fees, insurance (other than automobile or home insurance), etc.

Check how much these credit charges add up to. They are also expressed as an annual percentage: the credit rate.

The real cost of credit

Think about checking how much your contract will really cost you. For example, is it worth borrowing $2,000 but have to reimburse $2,700 in total?

Evaluating your ability to pay

The merchant is required to evaluate your ability to reimburse the credit applied for.


Last update : August 25, 2020

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The information contained on this page is presented in simple terms to make it easier to understand. It does not replace the texts of the laws and regulations.