In: Accounting
FINDtwo different credit card applications (e.g., online, at restaurants, etc.).
COMPAREthe two credit card offers by completing the chart below to describe key features of each.
Credit Card Feature |
Card #1 |
What is the name of the Credit Card? |
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What is the APR (annual percentage rate)? Is it fixed or variable? |
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Penalty APR and trigger events when it is charged |
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Annual fee |
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Late fee |
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Over-the-limit fee |
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Transaction fees (balance transfers, cash advances, etc.) |
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Grace period |
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Method for computing account balance |
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Rewards for use |
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Other features |
Credit Card Feature |
Card #2 |
What is the name of the Credit Card? |
|
What is the APR (annual percentage rate)? Is it fixed or variable? |
|
Penalty APR and trigger events when it is charged |
|
Annual fee |
|
Late fee |
|
Over-the-limit fee |
|
Transaction fees (balance transfers, cash advances, etc.) |
|
Grace period |
|
Method for computing account balance |
|
Rewards for use |
|
Other features |
Which card offers the best deal and why?(write a paragraph below)
Name of the card |
Moneyback HDFC Credit Card |
Citibank Rewards Credit Card |
APR | 3.49% per month | 3.25% per month |
Fiexd/ Variable | Fixed | Fixed |
Annual fee | Rs. 500 | Rs. 1000 |
Late fee | 10% of amount outstanding | Based on balance outstanding slab wise |
Transaction fee | 2.5% of amount withdrawn | 2.5% of amount withdrawn |
Grace Period | 3 Days | 3 Days |
Rewards |
|
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From the above comparison its fairly clear that the Citi Rewards Card is a better deal for 2 major reasons, firstly its rewards and benefits are far more widely spread across spending avenues hence better from a customer stand point. Also because its monthly interest rate is less than the HDFC credit card thus relatively cheaper.