When you borrow money, you have to pay credit charges in exchange.

What are credit charges?

Credit charges include all of the fees you have to pay, in addition to the amount borrowed. Among other things, they include:

  • interest;
  • death or disability insurance;
  • administration, brokerage or storage fees;
  • the value of a discount granted to a consumer who pays cash.

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 must remain unchanged for the entire term of the contract. The credit rate is used to calculate the maximum credit charges you will have to pay over the course of your contract.


Last update : June 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.