Question

1. With a credit rating over 500, you should have no problem getting approval for credit purchases. Select one: True False

2. Which of the following is most accurate about interest rates in Canada? Select one: a. Payday loan companies provide a necessary service and have permission to charge above the maximum loan rate in Canada. b. The maximum interest rate that can be charged on a consumer loan in Canada is 60 percent. c. Charging a rate of 3 percent for a seven day payday loan is legal in Canada. d. In Canada, the regulation of payday loans is the responsibility of the federal government only.

Answer 1

1. With a credit rating over 500, you should have no problem getting approval for credit purchases.
Ans : False
( Generally, the credit bureaus consider any rating score over 650+ to be a “good” credit score.)

2. Which of the following is most accurate about interest rates in Canada?
Ans : (B). The maximum interest rate that can be charged on a consumer loan in Canada is 60 percent.
(Reason : As per Criminal Code of Canada sets the maximum allowable annualized interest that may be charged at 60% – interest charged above that level is considered usury and is a criminal offence.)