Photo via flickr user chuckthewriter
General Electric (GE) recently announced they are spinning off their successful North American retail credit card division. The IPO (Initial Public Offering) of GE’s credit card division, soon to be known as Synchrony Financial, is set for this week. GE has decided to sell off its retail credit card division in an effort to concentrate on its core competencies. What does this mean for credit cardholders? Could better rewards be on the way? Let’s take a look.
Photo via jreed (CC BY-SA 2.0)
It would be a major understatement to say that the last few months have been easygoing for the bullseye brand. Most recently in May 2014, the CEO of Target resigned under mounting pressure after a major security breach and losses of almost $1 billion for its Canadian expansion.
Contactless payments offer consumers a faster, more convenient way to make everyday purchases. Instead of inserting or swiping your credit card, you can wave your MasterCard PayPass or Visa payWave; the purchase is then authorized, processed and billed in one fell swoop – no signature required!
While contactless payment saves time, some consumers don’t feel at ease with the new method of payment. What if your credit card is lost or stolen? Could fraudsters go on a shopping spree at your expense? Some consumers have gone as far as asking their credit card issuer to disable contactless payment.
Bank of Canada chief Stephen Poloz and Senior Deputy Governor Carolyn Wilkins
If you have a variable rate mortgage, you can relax. The Bank of Canada has decided to yet again to hold the overnight lending rate at 1 per cent. It has been nearly four years since the key interest has been frozen at 1 per cent. This marks the longest stretch in Canadian history interest rates have remained the same.
If you dream of being a homeowner one day, it’s important to understand how to calculate debt service ratios. With home prices sky-rocketing in major cities across Canada, paying for your home with savings is no longer possible for most homebuyers.
A mortgage can help make your dreams of homeownership a reality a lot sooner. Banks use debt service ratios when reviewing your mortgage application. Good debt service ratios can mean the difference between your mortgage application being tossed in the approved or rejected pile.
Not all debt is bad. Sometimes carrying debt makes sense. With home prices hitting the stratosphere in many cities, it would take the average homeowner years to save up enough to pay for their home in cash. In fact, Millennials are struggling just to save the minimum five per cent down payment. Home prices have ballooned to 10 times the median income, over double the ratio in the 1980’s. In this case, taking on a mortgage makes sense.
