When you finance a purchase on credit, you have to pay credit charges.
What are credit charges?
Credit charges include all of the fees you have to pay, in addition to the amount financed. Among other things, they include:
- interest;
- insurance (other than automobile insurance, among other things);
- administration fees.
The amount of the credit charges must be indicated in your contract.
What is the credit rate?
In your contract, the credit charges are also expressed as an annual percentage: the credit rate. There is only one case where merchants can change this rate: you entered into a contract with a variable rate.
The credit rate is used to calculate the maximum credit charges you will have to pay over the course of your contract.
Last update : May 3, 2021
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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.
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