Here you will find all agreements, benefit details, amendments and insurance certificates for CIBC credit cards The amount of interest charged to you by a lender is determined by several factors. These include the policy rate, the type of lending product, the amount you want to borrow, and how long the funds will be repaid. However, your “creditworthiness” or your ability to repay the credit is paramount to a lender. Before extending any type of credit, a lender will carefully consider your income, the amount of debt you already have, and your repayment history. In order to cover the risk and costs associated with granting credit, a lender calculates interest or service charges to the borrower according to the agreement. These additional costs – the cost of credit – consist of any amount exceeding the amount borrowed (the capital). The constitution and maintenance of good credit is essential for the use of credit products for major purchases. Keep your credit in good condition by respecting the terms of your agreements. Missing payments, late payments, or significantly exceeding your authorized credit card limit will negatively impact your credit privileges in the future.
Any form of credit you carry, regardless of your amount, is an important part of your credit history and can affect your creditworthiness. To get a copy of your credit information, go directly to one of the credit bureaus: Types of credit are covered by two main categories: secured in which the borrower mortgages a particular asset (such as investment or a house) as collateral; and unsecured, by borrowing funds without collateral. Given the reduced risk to the lender, secured forms of credit typically offer lower interest rates and higher credit limits. Credit is a deferred payment agreement between a borrower and a lender that facilitates access to repayment funds at a later date. Common types of credit include installment loans for large purchases such as a home or car, as well as revolving credit agreements, including credit cards and lines of credit. Access to credit reduces the burden of paying cash directly for expensive items, so you can spread out expenses over time. Credit is what makes it possible to buy important items such as homes and cars for most Canadians, even for those with considerable savings.