Question 1

How does credit card interest work in Canada?

Accepted Answer

Most Canadian credit cards charge 19.99% annual interest on purchases and 22.99–24.99% on cash advances. Interest is calculated daily: divide your rate by 365 (daily rate = 0.0548%), then multiply by your average daily balance. Interest is charged only if you carry a balance past your statement due date — pay in full every month and you are charged $0 in interest. The minimum payment trap: if you owe $5,000 at 19.99% and pay only the minimum (~$100/month), you pay ~$5,000 in interest and take ~10 years to pay off. Always pay in full, or as much above the minimum as possible.

Question 2

How do I dispute a credit card charge in Canada?

Accepted Answer

Contact your card issuer directly (by phone or secure message) within 30–60 days of the statement date. Explain the dispute: unauthorized charge, merchant error, item not received, or quality not as described. The card issuer will open a chargeback investigation. Visa/Mastercard/Amex rules give you strong rights — merchants must prove the transaction was authorized and fulfilled. Provide any documentation (screenshots, emails, receipts). Most simple disputes resolve in 2–5 business days; complex ones take up to 45 days. You are not responsible for unauthorized charges you report promptly.

Question 3

What credit card insurance benefits do Canadian cards include?

Accepted Answer

Premium credit cards often include valuable built-in insurance: Purchase protection (90–180 days for theft or damage), extended warranty (doubles manufacturer warranty up to 1–2 years). Travel cards additionally include: Travel medical insurance (10–21 days of emergency medical for cardholders), trip cancellation/interruption, flight delay, baggage delay, car rental collision, and sometimes hotel burglary. The coverage varies by card and has exclusions (pre-existing conditions, travel against government advisories). Always read the certificate of insurance. For a family, these travel benefits can be worth $500–$1,500/year, often justifying a $120–$150 annual fee alone.

Question 4

What happens if I miss a credit card payment in Canada?

Accepted Answer

Missing a credit card due date has several consequences: (1) You will be charged interest from the statement date on the entire balance. (2) You may be assessed a late payment fee ($35–$38). (3) Your promotional interest rate may be revoked. (4) After 30+ days late, it will likely be reported to Equifax and TransUnion, damaging your credit score — a single 30-day late payment can drop your score 50–100 points. (5) Repeated missed payments can lead to account closure and collections referral. If you miss a payment, pay it immediately and contact the issuer — many will waive the first late fee for customers with good history.

Card Type	Purchase Rate	Cash Advance	Balance Transfer Promo
Standard cards	19.99%	22.99–24.99%	0–3.99% (limited period)
Premium rewards cards	20.99%	22.99–24.99%	Varies
Low-interest cards	8.99–12.99%	12.99–19.99%	Varies
Store/retail cards	19.99–29.99%	24.99–29.99%	N/A

Credit Card Basics Canada: How Credit Cards Work, Interest & Fees

Credit card interest at a glance

Credit card basics articles

How credit cards work

Managing your card

Problems & disputes

Getting out of credit card debt

Insurance

Getting your first card

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