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Tag: Credit Card

  • What happens if I don’t pay my credit card bills?  – MoneySense

    What happens if I don’t pay my credit card bills?  – MoneySense

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    If you’re struggling to make your minimum credit card payments, you’re not alone. Unexpected emergencies can sometimes leave us short on funds to make the minimum payment on a credit card. According to Equifax Canada’s 2023 Market Pulse Consumer Credit Trends and Insights report, nearly 35% of Canadians carry balances on their credit cards from month to month. However, there are potential consequences for not paying your credit card bill on time. So here are the steps you can take to minimize the impact.

    Note that credit card companies may respond differently to missed payments, ranging from a tersely worded letter to potential legal action, depending on your issuer and your situation. In this article, we’ll explore the implications and ways to manage your credit card debt.

    What are the immediate consequences of not paying a credit card bill?

    If you don’t pay your minimum credit card balance, there could be different outcomes depending on the type of credit card you carry and the credit card issuer. Missing a couple payments will usually result in a hit to your credit score, as well as penalty fees like late charges and potentially a higher interest rate. If you miss more than one payment, the credit card company may also close your card. 

    Review your credit card agreement to ensure you are aware of your obligations and any potential penalties. If you miss payments, the credit card company may do any or all three of the following, according to the Canadian government:

    1. Revoke promotional interest rates.
    2. Increase interest rates in general.
    3. Cancel the credit card.

    Will my credit score be impacted if I don’t pay?

    Payment history is the biggest factor in calculating your credit score, so a late or missed payment can definitely impact it. Your credit score indicates creditworthiness for lenders, meaning it influences the loans you may qualify for, the interest rate you’ll pay, what you can buy on credit, and maybe even where you work and where you live. 

    Typically, one missed payment won’t end up on your credit report for at least 30 days after the payment due date. If you make the payment before that point, you might incur penalty fees, but your credit score likely won’t suffer. However, if you don’t pay your credit card for longer than that, your credit will take a hit and hinder your ability to qualify for certain financial services in the future.

    Interest increases and penalty fees on missed card payments

    Depending on the terms and conditions of your credit card, you may have to pay a late fee if you miss a payment. Penalty fees can depend on your balance and what’s outlined in the credit card agreement. 

    In addition, you might face a penalty annual percentage rate (APR) if you miss payments by at least 60 days, resulting in a higher interest rate being applied for a period of time. And that can grow your debt even higher. These terms differ depending on the credit card issuer. 

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    Randolph Taylor

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  • Simplii and Diljit Dosanjh team up on eve of Dil-Luminati tour – MoneySense

    Simplii and Diljit Dosanjh team up on eve of Dil-Luminati tour – MoneySense

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    Fresh off an appearance at Coachella, the Diljit Dosanjh Canada tour starts in Vancouver on April 27, 2024 at BC Place—a night that’s expected to be the largest Punjabi show ever produced outside of India. The singer will also be the first ever Punjabi artist to perform at the venue. 

    With 8.5 million monthly listeners on Spotify alone, and 24 million followers across all his social media platforms, Simplii felt Dosanjh would be the perfect candidate to be its first-ever brand ambassador.  

    “We both share the same passion for inspiring and supporting new Canadians and helping people live life to the fullest,” said Kam Dhadwar, managing director at CIBC Capital Markets, in a statement. “Nearly a third of Canadian newcomers originate from India and with Diljit’s help, we hope to help them see themselves in the Simplii brand.”

    What the Simplii Dosanjh partnership means for Simplii clients

    As of yet, this partnership doesn’t seem to offer any special perks for Simplii Financial customers looking to grab tickets to the Dosanjh show in Vancouver. “At the moment, our partnership includes social content, ads, contesting, and advice for our clients,” Dhadwar says in his statement, “but we’ll share more on how the partnership evolves over time.” 

    What to know about Simplii and its entertainment perks

    Simplii Financial is one of Canada’s biggest alt-banks, with over 2 million Canadian account holders. It operates as an online-only institution, although clients can go to ATMs at any CIBC location, thanks to an ongoing partnership. Pitching itself as a bank for newcomer Canadians and international students, Simplii allows account enrollment from over 90 countries, same-day no-transfer-fee transactions to more than 130 countries, and foreign currency savings accounts, including for Indian rupees. It also offers high-interest savings accounts, chequing accounts and other products.

    While Simplii is a fairly no-frills banking option, its Simplii Cash Back Visa Card offers a decent 4% reward rate for select restaurants, bars, and coffee shops, although it has an annual cap of $5,000. It also grants 1.5% back on $15,000 worth of eligible gas and pre-authorized payments, and a no-cap, 0.5% back on everything else. This might not do much for a Dosanjh fan looking for exclusive access before the show, but it could help concertgoers save a bit of money on their big night out. MoneySense lists it as one of the best credit cards for newcomers to Canada.

    Are entertainment rewards worth it?

    Plenty of credit cards and financial institutions and banks in Canada offer entertainment rewards. These range from early access to select shows to cash back rewards on ticket purchases, flights, or other entertainment options like restaurants and bars. For someone spending as much as $2,361 on front-row tickets at Dosanjh’s Vancouver show, according to Ticketmaster, entertainment rewards can go a long way. But not all cards are created equal. 

    The Simplii Cash Back Visa Card doesn’t offer entertainment rewards for show tickets, although Simplii’s cardholder agreement says it may give special offers from time to time. These could, presumably, include access to tickets to special events. For example, RBC helped Avion Rewards members snag tickets for Taylor Swift’s Eras Tour.

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    Brennan Doherty

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  • Saving on purchases and for emergency funds, Canada’s extreme couponer shares her secrets – MoneySense

    Saving on purchases and for emergency funds, Canada’s extreme couponer shares her secrets – MoneySense

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    Now, being more budget-conscious, I love using my PC Mastercard. It allows me to earn PC Optimum points on my everyday purchases, everywhere I spend. And the best part is, not only can I redeem those points for free groceries and other essentials, sometimes I like to treat myself and redeem on items that I’ve been vying for, like a cute outfit from Joe Fresh or the season’s hottest perfume scent.

    What’s the best money advice you’ve ever received?

    There’s no way to “get rich quick.” It takes time and planning to grow your money and make it work for you.

    What’s the worst money advice you’ve ever received?

    It’s not necessarily advice, but just the peer pressure to measure up to others. This can cause individuals to make financial decisions that don’t work for them or their lifestyle.

    If you’ve ever experienced this, my piece of advice is whenever you are feeling FOMO (fear of missing out), take a step back and get a better understanding of your personal goals versus what the people around you are doing. 

    Would you rather receive a large sum of money all at once or a smaller amount of money regularly for life?

    Receive a large sum of money all at once. This way I can build a plan around the dollars I receive and make them work for me.

    What do you think is the most underrated financial advice, tip or strategy?

    Couponing. And I’m not only talking about the paper coupons you clip from newspapers. Couponing and budgeting has evolved a lot since, you can find an app for everything! Like the PC Financial app that shows you customized offers based on your spending habits.  

    My strategy is finding programs that fit your spending habits. From loyalty points programs, price matching or cash back apps, I recommend shifting to a strategy that works with your everyday purchases.

    For me, that’s the PC Mastercard and PC Optimum program. I’ve been using this program for years and it’s helped me save hundreds of dollars and save every month. By earning PC Optimum points everywhere I shop using my PC Mastercard, I’m able to fast forward to free and redeem on essentials like groceries, or reward myself with items I want, like face masks and makeup from Shoppers Drug Mart.

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    MoneySense Editors

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  • 6 Aspects Of A Balanced Person: A Complete Picture of Well-Being

    6 Aspects Of A Balanced Person: A Complete Picture of Well-Being

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    What are the six aspects of a balanced person? Physical, mental, emotional, social, work/financial, and meaning/spiritual. Learn more about each one and how to improve it!


    In life, there isn’t one single area that we need to focus on that is going to magically fix all of our problems.

    Instead there are multiple dimensions behind every “good life.” Each dimension requires our attention and each contributes to our overall happiness and well-being.

    Here are six aspects of life that come together to create a “balanced person.” By being more aware of these different dimensions in life, we can determine which areas we need to focus on more and work to improve.

    The different aspects of a balanced person include: 1) Physical, 2) Mental, 3) Emotional, 4) Social, 5) Work/Financial and 6) Meaning/Spiritual.

    If we focus too much on any one area, then we risk neglecting another one. For example, if you become solely focused on just work and money, you may end up spending less time taking care of your physical and mental health, or less quality time with family and friends.

    This is a common trap people fall into. They focus all of their energy and effort into one area in life while completely ignoring another. Often they need to reconfigure their core values and priorities before making a meaningful change.

    This is why practicing balance in all things is so important.

    Each of these areas is one piece of a much larger puzzle, and only when you have all of these areas working together harmoniously can you finally build a complete life that serves all of your needs.

    Here’s a detailed breakdown of each aspect of a “balanced person,” along with tips, tools, and practical advice on how you can start improving each one.

    While reading ask yourself, “Which aspect do I need to focus on the most right now? What’s one small change I can make to improve that area?”

    Now let’s dive in…

    1. PHYSICAL WELL-BEING

    health

    The “physical” aspect of life is all about taking care of our health, especially exercise, diet, and sleep.

    This includes what types of foods and drinks we consume on a daily basis, how often we exercise and keep our bodies moving, personal hygiene and cleanliness, as well as minimizing alcohol, smoking, and other harmful habits to our physical health.

    Our body is one of the most precious gifts we have – and without it we can’t exist. If we don’t stay healthy, we often can’t fully enjoy all the other aspects of life such as family, work, traveling, or leisure.

    Our health can often have a spillover effect into all the other aspects of our lives – for that reason, taking care of our physical health is often an essential first step on any road to self-improvement.

    No matter what the current state of our health is, it’s never too late to start changing our habits, even if it’s something small like stretching in the morning, taking daily walks outside, or starting an active hobby like Yoga, marathon running, or playing sports.

    A healthy body is a healthy mind. When we take better care of our bodies, we also feel more confident, motivated, and energized overall. That’s the beginning of bringing out your best self.


    Things to do:

    • Identify small ways to be more physically active. Often our days are filled with opportunities to be more active, we just need to take advantage of them. Try to cultivate an “everything counts” mindset when it comes to exercise, even if it just means taking a walk around the block, or stretching in the morning, or doing push-ups before lunch. Any physical activity is better than none at all – so seek out small and convenient ways to keep your body moving throughout the day. If you find yourself sitting for long periods of time, get up and do chores, take a walk around the office, or make a phone call while standing up. A sedentary lifestyle is one of the biggest risk factors when it comes to poor health, so finding any reason to stand up more is better than sitting.
    • Find exercise that “clicks” with you and your personality. Different things work for different people. Some people need to commit themselves to a gym membership to get themselves off the couch, while others prefer to work out in the comfort of their own homes. Your personality shapes what exercise you like, so it’s important you find activities that resonate and “click” with you, rather than trying to force yourself to do something you really don’t enjoy. All you need is that one hobby to take your fitness to the next level, whether it be finding an enjoyable sport (like Tennis, or Baseball, or Basketball), or even exercising through video games (such as Wii Fit or Dance Dance Revolution). Try to think of physical activities you enjoyed as a kid, that can often be a good place to rekindle motivation.
    • Keep a healthy and consistent sleep schedule. Sleep is one of the most important habits when it comes to your overall physical and mental health. Research shows that those who don’t get sufficient sleep (between 6-10 hours every night) often suffer worse health outcomes like a weaker immune system, higher risk of obesity, lower energy and stamina, and more stress and anxiety. If your sleep habits aren’t healthy or consistent, it will likely have a negative “ripple effect” on almost every other aspect of your day. When you’re tired and fatigued, you’re more likely to make mistakes at work or argue with your spouse. It’s important not only to get between 6-10 hours of sleep each night, but also to maintain a consistent schedule. If you don’t sleep much on the weekends, it’s difficult to “catch up” on those lost hours throughout the week. Try to go to bed and wake up around the same time each day if possible. Here are more important lessons behind a good night’s sleep, including recognizing that some people are natural “early birds” or “night owls,” and that’s something you need to recognize and work with.
    • Pay attention to your food and diet. There are many different diets out there to choose from – and people can have long debates about which one is better – but the most important thing is to not eat too much, especially junk food, fast food, soda, sweets, and lots of processed food. Use your commonsense. Experiment with different diet changes and see what works best for you. Different diets work better for different people – so there’s no “one size fits all” solution to what exactly you should eat or not eat. One simple diet change is to substitute all your soda/juice/sugary drinks with water instead. Drinking plenty of water is never a bad place to start – most people don’t recognize how dehydrated they can be throughout the day and how it effects them. If you’re trying to lose weight, one popular option you can consider is intermittent fasting where you allow yourself to eat for an 8 hour window each day and fast for the remaining 16 hours. You can also try the “One Meal A Day” approach, where you restrict yourself to just one big meal (with minimal snacking). In general, pay attention to how your body responds to the things you eat: What foods leave you tired and feeling like crap? What foods make you energized and feeling good?
    • Take care of personal hygiene and cleanliness. Proper hygiene is another important aspect of physical health. While it can seem like commonsense, basic habits like taking a shower, brushing your teeth, getting a haircut, trimming your nails, and washing your face are are all important things not to neglect. Not only does cleanliness prevent you from catching germs and getting sick, you also feel better about yourself when you present yourself in the best way possible (and smell good). Often we are surprised by how much better we feel after a fresh new haircut, or clean new clothes, or new cologne/perfume. When mental health is low, we sometimes neglect these basic habits out of laziness or apathy, which is why they are a crucial first step in self-improvement if we aren’t paying enough attention to them.
    • Minimize your bad habits. No one is 100% perfect and we all have a couple bad habits, whether it be eating too many sweets, or drinking alcohol, or staying up late, or smoking cigarettes. In general, it’s important to quit (or minimize) our unhealthy habits as much as possible. “Choose your crutches wisely.” Keep in mind the long-term consequences of your habits – while it may not feel like they are hurting you right now, their effects can often catch up to you in the future. When trying to quit any bad habit, identify your triggers and work from there to change to change your patterns. Often by creating more boundaries between you and your bad habits, you can overcome your urge to do them (until it’s no longer an automatic habit anymore). If you find that you have a serious problem with addiction or drug abuse, consider professional help (such as a therapist, psychologist, or counselor) – there are often local resources available in your area if you do a quick search.

    Please don’t underestimate the importance of keeping your body in the best shape possible. As Socrates famously said, “No man has the right to be an amateur in the matter of physical training. It is a shame for a man to grow old without seeing the beauty and strength of which his body is capable.”

    Physical health is about much more than just looking and feeling good about yourself – it’s about living a life of vitality and longevity. You can have everything else in your life figured out, but if you don’t maintain your health you won’t be around very long to use or enjoy it.

    2. MENTAL WELL-BEING

    mental

    If you don’t take care of your body then it will slowly deteriorate – and the same is true for your mind.

    Just because you don’t have to go to school anymore doesn’t mean you can’t keep learning new things, keeping your brain sharp, and challenging your intellect.

    Reading books. Learning about new topics. Having deep conversations. Attending lectures and workshops. Following the news. These are all commonsense ways to keep our minds active and continue to update our knowledge and belief system as we move through life.

    Learning is a lifelong endeavor. Balanced people are always seeking new things to dig into and learn more about like a new hobby, new game, or new skill such as painting, chess, learning a new language, or playing a musical instrument.

    In addition, research shows that continuing to challenge our brain is an important way to prevent cognitive decline as we get older, including lower the risk of dementia and memory loss.


    Things to do:

    • Read more books. Reading is one of the best ways to keep your mind sharp and learn new things. Nonfiction books about science, history, philosophy, or self help can grow your knowledge and broaden your perspective on life; and reading fiction has been shown to have many cognitive benefits such as boosting empathy, creative thinking, and expanding your vocabulary. If you haven’t read a book in awhile, try to make it a goal to read at least one book this year. You can start with a book you already own but never got a chance to read, or ask a friend for a book recommendation, or get a card from your local library and explore countless books for free. Find a topic or subject that interests you and start there!
    • Learn a new skill. Learning multiple skills is a hallmark of being a balanced and well-rounded person. It’s never too late in life to dive into something completely new, such as playing a musical instrument, learning a new language, writing poetry, painting, or playing chess. A jack of all trades mindset can make you stand-out from others in unique ways. Many people have a talent or passion for at least one thing, but when you start combining talents and cultivating multiple interests it shows your range and flexibility as a person. Don’t limit yourself. There’s no pressure to become a “professional” or “expert” in everything you do, just stay on a learning path, have fun while doing it, and enjoy seeing the growth as you go.
    • Watch documentaries. Documentaries are a fun and easy way to explore new topics and learn about interesting things you otherwise wouldn’t experience. Depending on what you like, there are many different subjects to choose from: history, sports, biographies, science, inspirational stories, or nature documentaries (which have also been shown to boost positive emotions like joy, gratitude, and awe). I’ve made a lengthy list of recommended documentaries which I try to keep updated as I discover new ones. Check it out and choose one that catches your eye!
    • Monitor your information diet. Our current world is overloaded with information, including a lot that is wrong, misleading, or straight up lies and propaganda. Now more than ever we need to pay close attention to the information we consume on a daily basis. Try to find trustworthy news and educational sites where you can easily verify what they are saying from other sources. Beware of going down esoteric “rabbit holes” where people only confirm their own biases and beliefs. Actively seek out information from multiple sides so you’re at least aware of different perspectives and counter-arguments. The information pyramid is a great guide on how you should prioritize certain sources over others. In general, a peer-reviewed scientific study should be given more weight than some random influencer on social media. Keep in mind it’s also possible to consume too much and become an information junkie, where you’re addicted to learning new things, but you never act on it or put it into practice.
    • Spend time in active reflection. Give yourself time to think and digest, even if it’s just for 10 minutes while sitting with your first cup of coffee in the morning. You don’t always need to be filling your brain with facts to be a smarter person, you also need to know how to step back and contemplate what you know. Active and engaged minds are always taking advantage of opportunities for everyday reflection when sitting on the bus, taking a shower, or walking the dog. Often your best ideas and insights come in moments when you’re not trying to solve a problem directly but just mulling it over in your mind. Schedule time for solitude every now and then and don’t be afraid to sit alone with your thoughts.
    • Learn how your mind works. One essential component to being a more intelligent thinker is knowing how your mind works. We naturally believe we understand ourselves best, but psychology and neuroscience can sometimes reveal counter-intuitive facts and tendencies. To start, our minds are very susceptible to cognitive biases and logical fallacies that can muddy our thinking and understanding of reality. One of the most common errors is black and white thinking, where we believe a situation needs to be either “A” or “B,” but a third perspective, “C,” is the more accurate view. Our minds like to over-simplify things when reality can often be more nuanced and complex. Show intellectual humility. Be open to being wrong and be open to changing your mind in the face of new evidence and experience.

    Take your education seriously. Maintain a healthy and active brain. Even if you were never a good student in school, that doesn’t mean you can’t improve your knowledge and intelligence, especially once you find subjects you are deeply passionate about. Benjamin Franklin once said, “An investment in knowledge pays the best interest.”

    3. EMOTIONAL WELL-BEING

    emotional

    In the “Mental” section we covered how to keep our brains active and be more intelligent thinkers, but there’s also a whole other side of our psychology that we need to pay attention to as well: our “Emotional” side.

    Emotions can often seem like something that we have limited power over, but being a more emotionally intelligent person means becoming more self-aware and learning how to better respond to our emotions in the moment.

    We can’t ignore our emotions or push them aside forever, they are a necessary facet of life and we must learn to navigate our emotional world effectively if we want to live the best life possible.

    Remember that emotions are a resource, not a crutch. Every emotion serves a function or purpose, and if we channel our emotions in a constructive direction we can make great things happen.

    One important lesson is that even negative emotions like sadness, anger, guilt, or fear are helpful to a better life if we approach them from the right perspective.


    Things to do:

    • Learn the basics of emotional intelligence. There are 4 fundamental pillars of emotional intelligence that we need to cultivate: 1) Self-awareness (recognizing our emotions when they happen), 2) Self-regulation (knowing how to respond to our emotions and channel them in a positive direction, 3) Empathy (being aware of other people’s emotions and internal states), and 4) Social Skills (knowing how to respond to other people’s emotions in a healthy and constructive way). Certain people may be strong at some of these and not for others. For example, someone may be really empathetic and caring, but not know how to regulate their own mood and emotions, leading to burnout and emotional fatigue. An emotionally intelligent person must work on all four of these pillars.
    • Improve body awareness. All emotions have a physical component to them. When you learn how to identify the physical sensations behind each emotion, you’ll be much more attuned to your feelings in the moment as you’re experiencing them. This helps you to be more aware of your feelings before acting on them, and to recognize how emotions often want to push or pull you in a certain direction (“do this” vs. “don’t do that”). Every feeling serves a different function depending on its emotional valence (“positive” vs. “negative”) and arousal level (“high energy” vs. “low energy”). With practice, this improved body awareness can also boost your intuition, making you a better reader of your “gut feelings” and what they are telling you.
    • Learn to channel negative emotions. Negative emotions can serve a positive function if you know how to respond to them in a constructive way. If you struggle with any specific negative emotion (sadness, fear, guilt, or anger), then create a plan for how you will respond to it the next time it arises. For example, “If I’m angry, then I’ll go exercise,” or “If I’m sad, then I’ll write in my journal.” Emotions are energy that can be channeled in multiple directions. Write a list of the many ways you can respond to any negative emotion. Remind yourself you have a choice, and you don’t have to keep following the same pattern between negative emotion → negative behavior. One popular technique is opposite action, where you intentionally do the opposite of what a feeling is telling you to do (to reverse the cycle of negativity).
    • Practice meditation and daily mindfulness. Meditation is a great avenue for better understanding and regulating your emotions. It teaches you how to step back and just observe your thoughts and feelings without needing to immediately react to them. This space between “feelings” and “actions” is crucial for being a more emotionally intelligent person; it’s the main principle behind discipline, willpower, and self-control. Never forget that just because you feel a certain way doesn’t mean you need to act on it. If you’re completely new to meditation, start with the 100 breaths meditation – a simple exercise where you just focus on your breathing. It’s also helpful to learn grounding techniques for when you feel overwhelmed, such as mindful stretching or a 5 senses meditation.
    • Embrace creative expression. It’s difficult to describe many emotions with only words so it’s important to embrace other ways of expressing yourself, such as through music, photography, dance, painting, drawing, acting, or film. Often when I meet people who don’t feel fully connected to their emotional self, they usually lack ways of expressing themselves through art and creativity. A creative outlet is often a prerequisite to better understanding and navigating your emotional world, even if you don’t typically think of yourself as a “creative person.”
    • Savor all of your positive experiences. Life is filled with many joys and pleasures throughout the day and we should try to savor them as much as possible. We have many positive emotions to choose from – joy, gratitude, peace, awe, excitement, laughter, and wonder – and there are a variety of activities that can lead to more positive emodiversity in our lives. Don’t just chase after the same positive experiences over and over again, seek new experiences, new hobbies, and new ways of enjoying life. Learn how to savor happiness as much as possible by being more present in the moment, creating positive memories, and reminiscing on good times.
    • Relax and manage daily stress. Last but not least, it’s necessary we cover stress management as an essential component to mental health and emotional intelligence. Stress is a normal part of everyday life, but if you don’t know how to manage it in a healthy way it can often have a negative influence on your thoughts, feelings, and behaviors by making you more sensitive, irritable, angry, and bothered (even by little things that don’t really matter). Recognize when to push yourself vs. when to step back and recharge. In the complete guide on daily stress, you’ll find a great framework for reframing your “fight, flight, or freeze” response by viewing stress as a signal to pay attention to and guide you throughout the day. Don’t underestimate the importance of your comfort zone and use it as a place to recharge after a challenging or overwhelming day.

    Emotions can “make us” or “break us” depending on how emotionally intelligent we are. They are a fundamental part of life, but we often have more power over them than we realize. Learn how to channel your emotions in a healthy and constructive way – become a master of them, not a slave to them.

    4. SOCIAL WELL-BEING

    social

    Healthy and positive relationships are an essential ingredient to happiness and well-being.

    No matter who you are, you crave some type of social connection; even the most introverted person on the planet will have a tough time finding happiness all by themselves.

    There used to be a time when I believed “I don’t need people to be happy, all I need is myself.” But over the years I’ve learned more and more that having social support and a sense of belonging is a basic human need that can’t be avoided.

    How strong is your current social circle? Here’s advice to get you started.


    Things to do:

    • Stay connected with friends and family. You should try your best to stay in touch with people who you already have a strong relationship with, especially family and old friends. There’s a simple power in checking in on people and preserving social connections you’ve already established. It doesn’t take much time or effort to show you’re thinking about someone: a simple text, email, or phone call is all you need to let people know you still care and value your relationship with them. You’d be surprised by how much other people appreciate you reaching out to them, even if you haven’t spoken to them in a really long time.
    • Embrace small social interactions. Every time you leave your home, there is opportunity for social interaction. To build your social muscles, embrace the power of 10 second relationships, such as saying “Hi,” to a neighbor or coworker, small talk with a cashier or cab driver, or sparking up a quick conversation while waiting for the train or bus. Research shows even super tiny social interactions can boost positive emotions and feelings of social connectedness. This can also be a great exercise for people who are very introverted (or have a lot of social anxiety) and want to start being a more social person. Make a plan to have a pleasant interaction with at least one new person every day.
    • Learn how to have endless conversations. One big concern for people when it comes to meeting new people is, “What do I say? What if I run out of things to talk about?” One popular technique known as conversation threading provides an excellent framework so that you never run out of topics to talk about. The basic idea is that every sentence contains multiple “threads” we can go down, and often the art of good conversation is being able to 1) Listen to what people say, and 2) Choose a thread to talk more about. Rinse and repeat and a conversation can go on forever. Also consider improvisation exercises so that you can be a faster and more creative thinker in the moment.
    • Improve communication and conflict resolution. It’s a cliché, but communication is everything in relationships. If you don’t know how to express your thoughts and feelings in an honest and constructive way, you’ll have trouble building genuine and healthy connections with others at home, work, or wherever you need to cooperate and work together with people. In romantic relationships, it’s important to know how to communicate your feelings without manipulating or being dramatic. In family and work environments, it’s important to know how to defuse heated arguments before they spiral out of control. The truth is people can be difficult and you’re not going to like everyone’s company. That’s natural. Conflicts have the potential to arise in any social situation, because people have different beliefs, values, and personalities that may be incompatible with each other. What’s most important is to teach yourself the best methods for conflict resolution so you can better navigate the complexities of your social world.
    • Find opportunities to meet new people. Most people make friends through work or school. Once we get older, it can become more difficult to find new connections or become a part of new social circles. Recent research shows that most adults claim to have “less than 5 close friends.” If you’re looking to expand your circle, there are many opportunities available to you. Depending on your likes, hobbies, and interests, consider going out more to music shows, bars, coffee shops, workshops, church/religious services, bowling leagues, adult education classes, sports events, or book clubs. Seek out local groups in your area or volunteer somewhere. You can also take advantage of websites like Meet Up to connect with like-minded people who live close-by. All it takes is one new friend to introduce you to an entirely new social circle. Be patient and don’t worry if you don’t initially hit it off with the first couple people you meet. Finding the right relationships that fit into our lives can take time.
    • Use social media and the internet to connect. The internet can be a great place to connect with like-minded people who we’d never meet in the real world. Online communities on social media, message boards, or video games can often provide a valuable source of social interaction, especially for people who don’t have many “real life” friends. The internet can be particularly helpful for connecting with others who have rare or eccentric hobbies, such as fans of a specific author, athlete, music genre, or comic book franchise. Unfortunately, many online communities can also become negative, competitive, and toxic (see the online disinhibition effect), so it’s necessary you build a positive digital environment that works for you. That doesn’t mean hiding in your own “echo chamber,” but it does mean cultivating a feed and followers who ultimately add value to your life and don’t subtract it. First focus on topics you’re naturally interested in such as science, technology, sports, or movies. Try not to be a passive consumer of information, actively enter conversations by asking questions or sharing knowledge with others. Often times we can build meaningful connections with people online that are just as important as those we find in the real world. However, while online relationships can have many benefits, we shouldn’t see them as a substitute for real world “face to face” interactions.

    Always remember that quality of relationships > quantity of relationships.

    You don’t need to be super popular or the life of the party to have a healthy social life. All you need is a couple really close friends who support you, trust you, and enjoy your presence. That’s everything you need to be socially satisfied.

    Healthy relationships are a fundamental aspect of happiness and well-being for everyone. Our need to belong to a “tribe” or group is hardwired into our brain, biology, and evolution. Like every other aspect of a balanced person, it can’t be ignored.

    Are your daily social needs being fulfilled?

    5. WORK / FINANCIAL WELL-BEING

    work

    Another fundamental aspect of a balanced person is work, money, and material concerns.

    At the most basic level, we depend on food, clothing, shelter, healthcare, and other necessities so we can live a healthy and dignified life.

    People that struggle to make a living can often hurt in many other areas: physical health (can’t afford good foods, healthcare, or medicine), relationships (can’t support family, no money for dating), as well as our mental and emotional well-being (stress, anxiety, and low self-esteem).

    Unless you win the lottery or have someone else to provide for you, finding a steady job or career is often one of the most focused on areas in life. From childhood up until we finish high school or college, we are constantly asked, “What do you want to do for a living?”

    A few people find jobs they love, many find jobs they like, and most find jobs they can at least tolerate. Balancing psychological needs with financial needs can be a difficult task depending on your current situation.

    While we don’t always get a choice in what we do for a living, there are important ways to give ourselves more power over our work life and financial life. Here are important guidelines to keep in mind.


    Things to do:

    • Focus on your strengths. Everyone has a place in this world where they add value. Before you decide what type of work you’d like to do for a living, it’s important to know what your natural strengths, skills, and talents are. If you’re friendly and good with people, you may excel at managing, customer service, or human resources type jobs. If you’re more introverted and creative, you may want to focus on writing, graphic design, computer programming, or freelance work. What type of activities are you typically good at (or at least above average)? What were your best subjects in school? What do you enjoy doing and why? Complete the strengths worksheet to discover more about your natural skillset. Ultimately, knowing your strengths will influence what types of jobs or career choices will suit you best – including where you contribute the most value.
    • Value education and experience. No matter what your job is, there are always new ways to learn and improve. The best workers in life are those who are always growing and mastering their craft. College is still an important part of education, but what’s even more important is to stay self-motivated and continue learning after school. Many people I know have landed successful jobs that had virtually nothing to do with what they studied in college. In several cases, they were people who taught themselves coding/programming, built a portfolio to show their work to potential employers, and climbed their way up the company ladder from there. All self-taught. You can also consider going to trade schools, workshops, mentorships, internships, and other forms of gaining knowledge and experience that are outside of the traditional college model. Any work experience is better than none at all – you just need to start somewhere and begin building yourself up.
    • Make the most of your job. While it’s rare for any of us to get our “dream job,” we can always make the most of our work life by being a good employee and doing our best. Use nudges to keep yourself motivated and productive throughout the day, learn mental strategies for getting things done that you normally “don’t like” doing, and make friends at work with bosses, coworkers, clients, or customers, because those are the people you’re going to be spending a lot of time with and it’s crucial you have healthy and functioning relationships with them. No matter what your job is try to see the underlying purpose or meaning behind it. What value does it add to the world? Are you proud of the work you do?
    • Live within your means. Regardless of how much money you make, one of the most commonsense rules for financial well-being is living within your means. This includes keeping a budget that you can maintain (for food, rent/mortgage, bills, gas, clothes, and leisure expenses), and not buying too much stuff you can’t immediately afford. Debt can be common at some point in our lives (due to student loans, credit card debt, medical emergencies, etc.), but try to be mindful to not put yourself in a hole that you can’t climb out of. Avoid luxury expenses that put you at financial risk. We sometimes over-extend ourselves due to social comparison and a “keeping up with the Joneses” mentality. We think if our friend or neighbor gets a brand new car or goes on an expensive trip, then we need to “one-up” them with a similar purchase. Many times people fall into massive debt because they are trying to chase status, fame, luxury, or exorbitant pleasures. In general, keep track of all your monthly expenses and find ways to cut back on spending that isn’t necessary. Learn about spending biases that can lead to overconsumption (like the allure of “FREE!,” the “Relativity Trap,” and “One Click” purchases). Big corporations are masters of psychology and persuasion. If we aren’t vigilant about our spending habits (especially if you enjoy retail therapy), then we’ll often fall for tricks that cause us to spend more money than we should.
    • Create a healthy relationship with material things. This article is about being a balanced person. Work and money are very important aspects of life, but materialistic beliefs can also backfire to hurt us. No one lays down on their deathbed wishing they spent more time in the office. Work-a-holics can end up focusing so much on their career that they neglect giving enough attention to their family, health, and well-being. Never forget that there is a lot more to a good life than just money and material things, despite what you may see glamorized in movies, TV shows, or commercials. Psychology research shows that after a certain point, increased wealth and income has very little effect on our overall happiness and life satisfaction. Being rich sounds awesome, but it won’t necessarily make you any happier than if you earned less with a stable and secure life. Take the materialism quiz to see if you have a healthy relationship with money and stuff.

    Remember, money is important but it isn’t everything.

    Financial well-being will often look radically different depending on the person. Certain people may be content with modest and minimal living, while others crave more luxury, adventure, and pleasure. Whichever lifestyle you choose, it’s necessary that money finds the proper role in your life without being completely consumed by it.

    One succinct way to define true financial well-being is “not needing to think about money all the time.”

    6. MEANINGFUL / SPIRITUAL WELL-BEING

    spiritual

    The meaningful or spiritual aspects of life can often be overlooked.

    We may occasionally ask ourselves big questions like, “Who am I?” “Why am I here?” or “What’s my purpose?” but we rarely translate these questions into our daily lives through action.

    For many people, religion is their main source of spirituality and meaning. Attending church, being part of a local community, prayer, and volunteering or giving to charities are common ways people boost meaning in their daily lives. Religion has been shown to improve happiness and well-being by creating a strong sense of purpose and community.

    However, we don’t need religion to have a meaningful life. There are many other sources of meaning, including art, culture, philosophy, literature, music, relationships, activism, introspection, and creativity.

    Where do you get your meaning in life?


    Things to do:

    • Learn the pillars of a meaningful life. One excellent guide on how to live a meaningful life outlines five different pillars to focus on, including 1) A sense of belonging (having healthy relationships with those around you), 2) A sense of purpose (feeling that you contribute to a larger whole), 3) Storytelling (the life story we tell about ourselves, as well as stories and myths about the world we live in), 4) Transcendence (experiencing “awe” and “inspiration” in the presence of great things), 5) Growth (having a sense that you are evolving and moving forward as a person). All five pillars contribute to a rich and meaningful existence.
    • Spend more time in nature. Nature reminds us that we are part of something larger than ourselves, a whole process known as “life.” Nature is a fantastic source of meaning because it continuously inspires positive emotions like joy, amazement, gratitude, and awe. The best part is that nature is all around us – we don’t need to plan a weekend camping trip to experience it – instead just pay attention to everyday nature that is all around you: trees on the drive to work, birdwatching in your backyard, or spending time in your garden over the summer. Having pets to care for is another easy and wonderful source of nature and connection, even if it’s just a small fish tank to maintain. Nature also includes enjoying the beauty of a nice view such as sunrises, sunsets, mountaintops, storm watching, and star-gazing.
    • Take a complete picture perspective. Finding meaning requires being able to look at things from a big picture perspective. What influence do your actions have in the long-term? What type of impact will you leave on the world after you die? When you keep the complete picture in mind, you recognize that even super small actions can add up and have big results in the future. Your life doesn’t begin at birth nor end at death, you are part of an intergenerational chain of cause-and-effect that has stretched thousands of years. That’s a powerful thought if you can see the true significance behind it.
    • Embrace art, music, and culture. Artists are the creators of new meanings, especially famous painters, musicians, filmmakers, photographers, authors, playwrights, and dancers. Pursuing a creative hobby of your own is one fantastic way to infuse new meaning into your life. You can also embrace art and culture more by going to museums, art galleries, music concerts, and theaters. A lot of beautiful art is archived in online art and cultural exhibits, so you can discover a lot of new inspiration by just sitting in the comfort of your own home. Artists of all forms teach us how universal the human condition is. It’s a huge inspirational boost when you realize a book written over a hundred years ago resonates exactly with how you feel today. One of my strongest memories is attending a music concert of my favorite band with thousands of others listening and singing along. Creativity is one of humanity’s greatest gifts and there’s a lot of wisdom, beauty, and feelings of universal connection it can offer us.
    • Signs, symbols, and synchronicity. A meaningful life can be more about feeling inspiration and empowerment rather than thinking only logically and factually about the world. Embrace things you can’t always explain. If you feel like you’re getting a “sign” from the universe, accept it. Our minds often think unconsciously through the power of symbols, especially through reoccurring dreams or nightmares that may be trying to tell you something important. Meaning can be created anywhere if you have the right perspective. Many of my favorite moments in life are when I experience synchronicity, which is finding a connection between two things that seem completely unrelated at first. For example, if I start reading a book and then someone brings up the same book randomly the next day, I try to see that as a sign that I’m on the right path. It may or may not be true, but it is a simple and easy way to add more meaning to the little things in life.
    • Have faith that life is good. Faith may not have any role in science, but it does play an important role in good living. At the end of the day, one of the most important beliefs we can have is that “life is good” and things will generally work out in the end. One of my personal favorite quotes is, “Pray to God, but row to shore.” It shows us to have hope and faith in life, but still take action and try our best in the moment. Both faith and action are necessary ingredients to a happy and fulfilling life. A belief in God or a higher power can make this whole process easier. However, even if you can’t bring yourself to accept “metaphysical” or “supernatural” ideas, at least try to sense the oneness and interconnectedness of all things. These ideas are an endless source of power, strength, and resilience, even in the face of incredible hardships and tribulations.

    A “meaningful life” can be one of the most difficult areas of life to improve, especially while living in a world that is filled with nihilism, hedonism, and materialism.

    However, once you build a strong spiritual core you can withstand almost any difficulty or hardship. It can empower you to a whole new level that non-spiritual people don’t usually have access to.

    CONCLUSION

    To sum things up we must invest time and energy in all six of these aspects if we want to live a happy and balanced life.

    Once again, these six aspects of a balanced life include: 1) Physical, 2) Mental, 3) Emotional, 4) Social, 5) Work/Financial, and 6) Meaningful/Spiritual.

    Which area are you the strongest in? Which area are you the weakest in?

    Keep this framework in mind as you embark on a lifetime of self-improvement. Try the Daily Routine (PDF) exercise and use this resource as a guideline.


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    Steven Handel

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  • What does opening or cancelling a credit card do to my credit score? – MoneySense

    What does opening or cancelling a credit card do to my credit score? – MoneySense

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    To close a credit card, the balance is $0. If there’s a substantial balance on the remaining cards, it’s going to increase the credit utilization ratio. And, if the increase is high enough, it will hurt your credit score. This is because the closed card’s unused credit limit no longer provides balance in the relationship between your other credit balances and credit limits. What you owe elsewhere can have a bigger impact than if you had a zero-balance credit card.

    Another thing: Closing an account means the creditor will stop reporting on your behalf your credit history on that card. If the card showed positive credit history, such as responsible usage and making payments on time, that history will gradually fade away and no longer bolster your credit score. 

    The reverse can’t be said. If the card showed negative credit history, closing the account will not erase the negative impact on your score. 

    Generally speaking, cancelling a credit card won’t improve your credit score, and you shouldn’t close a credit card unless you have a good reason, such as not trusting yourself to use the credit responsibly.

    Buyer beware: Welcome offers

    Many credit cards come with a generous sign-up bonus that helps you earn cash back, points, miles or a reduced interest rate. Welcome offers can be a great way to save money, especially if you already had planned on spending the minimum threshold to earn them. However, proceed with caution. 

    Read the fine print. Despite the enticing welcome offer of a credit card, your credit score may drop when you apply for a new card as a hard inquiry will be performed during the application process. Although your credit score will only drop a couple of points and will likely recover after a few months if you make your payments on time, it’s still a hit to your credit.

    Remember that welcome offers are one-time deals. While some credit card sign-up bonuses may save you money up front, the reality is that any rewards you earn aren’t worth incurring additional bills if you’re already struggling with debt. You should only consider a new welcome offer if you have paid off your credit card debt in full. If you have any debt, focus on paying that down—not short-term wins like getting a lower and very temporary interest rate.

    Opening and closing credit cards can impact how you use credit, too. Open multiple new cards, and you may end up with more credit than you can feasibly handle or keep track of. In addition, the allure of welcome offers may distract you from your financial goals. There’s impact on your credit score, and it’s critical to think about how having more or less credit affects your ability to live within your means and pay off your debt in full each month.

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    Doris Asiedu

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  • Credit card spends drop over 10% from festival spending-led peak in October

    Credit card spends drop over 10% from festival spending-led peak in October

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    After surging to a record high in October on the back of festival season-led accelerated discretionary spending, credit card spends normalised in November, falling over 10 per cent month-on-month.

    Spends for the month stood at ₹1.61-lakh crore, 10.04 per cent lower m-o-m. In October, they had surged over 25 per cent to touch the record of ₹1.78-lakh crore, according to data by the Reserve Bank of India (RBI).

    Most major issuers registered a double digit decline in spends during the month with spends for the top four issuers falling 7-19 per cent. ICICI Bank saw the highest decrease at 18.7 per cent followed by Axis Bank at 14.5 per cent.

    The share of e-commerce payments in credit cards spends fell to 63.3 per cent in November after steadily increasing for the past three months to 67.6 per cent as of October 2023. On the other hand, the share of PoS (point-of-sale) transactions jumped to 36.7 per cent in November after falling for the last three months to 32.4 per cent in October.

    Other major issuers such as Kotak Mahindra Bank, AU Small Finance Bank, DBS Bank India and Federal Bank too saw a decline in spends, whereas IndusInd Bank and IDFC First Bank saw an increase of 1.8-2.0 per cent m-o-m.

    Cards outstanding

    Even as spends declined during the month, credit cards-in-force continued to grow at a steady pace. Outstanding cards touched a new high of 9.60 crore cards in November, up 1.4 per cent from the previous high of 9.47 crore cards in October.

    The number of credit cards rose by 12.9 lakh during the month, lower than 16.9 lakh cards in October and 17.4 lakh in September, largely due to a decline in the number of cards for banks such as Bank of Baroda, Karur Vysya Bank, and SBM Bank India.

    Among the top four issuers, HDFC Bank was the leader in terms of increase in number of cards, breaking ICICI Bank’s three-month streak. HDFC Bank net added 3.2 lakh cards during the month to a total of 1.95 crore cards, maintaining its position as the largest card issuer in the country.

    SBI Card, ICICI Bank and Axis Bank all saw net additions of less than 2 lakh cards during the month. IDFC First Bank, IndusInd Bank, Kotak Mahindra Bank, RBL Bank and AU Small Finance were the other issuers to see strong net addition in cards.

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  • TD First Class Travel Visa Infinite Card review: Should you sign up for this travel rewards card? – MoneySense

    TD First Class Travel Visa Infinite Card review: Should you sign up for this travel rewards card? – MoneySense

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    The TD First Class Travel Visa Infinite isn’t necessarily the first TD travel card you think of, given TD’s deep relationship with Air Canada and Aeroplan—but it’s worth considering for its flexible redemption program and partnership with Expedia. You can use the Expedia For TD online portal to redeem rewards for flights, hotels and car rentals with virtually any carrier on Expedia. 

    Find your next credit card*

    • See cards tailored for you from over 12 banks and card issuers
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    You will be leaving MoneySense. Just close the tab to return.

    A hefty sign-up bonus, comprehensive insurance coverage and generous earn rates makes the TD First Class Travel Visa Infinite card a solid choice if you want to use your credit card rewards towards travel-related purchases.

    TD First Class Visa Infinite


    Get more details*


    The TD First Class Travel Visa Infinite Card


    Three things you need to know about the TD First Class Travel Visa Infinite

    1. You earn Points under the TD Rewards program
      You earn 3 TD Points per dollar spent on everyday purchases (1.5% earn rate), including gas and groceries. For travel purchases booked online through ExpediaForTD.com, you get three times the regular earn at nine TD Points per dollar spent (4.5% earn rate). T
      he TD Points system is easier to understand than the banks Aeroplan Credit Cards. Your Point values stay the same no matter where youre flying, so its easy to work out how much theyre worth. Plus, TD Points can be redeemed on any airline, not just Air Canada or Star Alliance Partners. While Aeroplan Miles are valuable, if you prefer simplicity the TD First Class card might be more up your alley.
    2. The card comes with an attractive sign-up bonus
      The TD First Class Travel Visa Infinite card comes with a generous sign-up bonus. The annual fee ($120) and fee for your first additional cardholder ($50) are waived for the first year; that’s a savings of $170, and with two of you earning TD Points, you can reach your goals faster. Earn up to 145,000 TD Rewards points. You’ll earn 20,000 TD points with your first card purchase, then another 115,000 when you spend $5,000 on purchases within the first 180 days. Earn a birthday bonus of up to 10,000 rewards points. Conditions apply. Must apply before May 28, 2023. For Quebec residents, please click here.
    3. Youll get travel insurance and discounted lounge access
      The TD First Class Travel Visa Infinite card comes with up to $1 million of travel medical insurance for the first 21 days of a trip, while trip cancellation, trip interruption, common carrier travel accident insurance, travel assistance services and delayed and lost baggage insurance round out the card’s benefits. For a premium rewards card, The TD First Classs insurance is fairly standard, however; so, if youre looking for more comprehensive credit card insurance, you could consider a card like the National Bank World Elite Mastercard,* which comes with up to $5 million in out-of-province-of-residence medical/hospital insurance for trips up to 60 days (if youre under 54).
      The TD First Class Travel Visa Infinite card also gives you a discount on access to Priority Pass.

    How to redeem your TD Rewards

    You can redeem your TD Points for travel in two ways: 

    The best—and most valuable—way is through the Expedia For TD online portal, where you can redeem 200 TD Points per dollar in travel credit (0.5%) and pay the balance of the cost (if any) using your credit card (you’ll also earn Points on this spend).

    Your other redemption choice is the “Book Any Way” option, which lets you book via other travel websites; however, your bookings can cost up to 25% more if you go this route. When using “Book Any Way” you’ll redeem at 250 TD Points per dollar (0.4%) applied as a statement credit on your first $1,200 in travel purchases and 200 TD Points per dollar (0.5%) for your travel purchases over $1,200. In comparison, with Expedia For TD, you’ll get a better and more consistent return of 0.5% on all your travel spending. 

    In both cases, the TD First Class Travel Visa Infinite card allows you to redeem for any seat on any airline. Additionally, you can redeem Points for rewards in small increments (minimum 200), so this means you don’t need to build up a large pool of Points before you’re able to apply them towards travel. 

    Finally, through the TD Rewards site, you can shop for items such as a Vitamix or a Dyson vacuum, or even gift cards. However, you won’t get the same value as you would booking travel. For example, a $50 gift card at Best Buy will cost you 20,000 TD Points, whereas you can use the same amount of Points for $100 in travel on the Expedia For TD portal.


    What are the best ways to benefit from this card?

    Ultimately, your best bet is to redeem Points for travel from ExpediaForTD.com. Generally, prices on the website are similar to those on the main Expedia website, and you’ll be able to redeem at the rate of 200 Points per $1. If you redeem Points for travel outside of the TD portal, your Points will lose up to 25% in value; however this could be a smarter route if you find a really good deal on another travel portal. 

    If you do find a better hotel or flight deal elsewhere, you have the option to price match, but there are some restrictions: you must have booked within the last 24 hours; your travel plans must be at least 48 hours away; and travel dates, and flight and hotel classes must all be the same to submit a claim.


    Are there any drawbacks to the TD First Class Travel Visa Infinite Card?

    There is a minimum personal income requirement of $60,000 or a household income of $100,000. However, this is a common requirement for many cards in the same category. 

    Other cards offer more incentive to spend in categories like groceries, dining and entertainment. The TD First Class Travel Visa Infinite card only offers three times the Points earn on travel booked through the Expedia For TD portal (4.5%)—everything else is at the base three TD Points per dollar (1.5%) rate. To compare, the Scotiabank Gold American Express has a five-times Points accelerator on restaurants and groceries (5% per dollar).

    Finally, the TD First Class Travel Visa Infinite card doesn’t offer airport lounge accessonly a 20% discount on a Priority Pass membershipand you’ll be charged foreign transaction fees. So, if you like to use airport lounges, or you often find yourself shopping in a foreign currency, you may want to consider a card that offers those perks. 


    Bottom line

    TD’s unique partnership with Expedia, accelerated earn rates and incremental Points redemption structure make the TD First Class Travel Visa Infinite card a worthwhile consideration for those who travel frequently.


    Get more details*


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    Winston Sih

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  • As most stores close for Thanksgiving, Black Friday may bring the biggest crowds since before COVID

    As most stores close for Thanksgiving, Black Friday may bring the biggest crowds since before COVID

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    Stay home and eat your turkey. Most stores, other than supermarket and pharmacy chains, aren’t open until Black Friday morning.

    The frenzied mall mobs characteristic of Black Friday — and Thanksgiving, until COVID shutdowns squashed that retailer move to out-compete one another — had faded even before the pandemic, with the growth of e-commerce and ever-earlier holiday promotions, which this year began well before Halloween.

    Despite evidence showing that shoppers recently have pulled back, data from consumer surveys indicate that overall spending is expected to hit unprecedented levels this holiday season.

    U.S. consumers, buoyed by a robust labor market, have demonstrated unexpected resilience even as they contend with stubborn inflation. But to pull off this spending feat, a significant number of shoppers are expected to rely on credit cards and buy-now-pay-later plans to fund their holiday spending this year.

    “They might buy fewer gifts because things are more expensive, but we expect spend to be up,” said George Noceti, a wealth advisor at Morgan Stanley. “So we think that this will be another banner year in terms of Black Friday, Cyber Monday, and all the discounting that goes on in January.”

    The National Retail Federation predicted that holiday spending will be up 3% to 4% from last year, reaching record levels between $957.3 billion and $966.6 billion. The increase in spending is predicted to slow from last year’s 5.4% boost, according to the trade group’s data.

    Online shopping is expected to be robust, starting on Thanksgiving.

    “Now it’s very online focused, and we’re really looking to see the online velocity surge on the major days like Black Friday and Cyber Monday,” said Vivek Pandya, lead analyst at Adobe Digital Insights. In line with recent years, e-commerce sites are expected to be inundated on Black Friday and Cyber Monday as consumers shop from the comfort of home.

    The four-hour window from 6 to 11 p.m. Pacific time Monday is expected to be the busiest shopping period of all, with spending projected at nearly $4 billion, according to Adobe Analytics data.

    Black Friday may not be the bellwether of the holiday shopping season that it once was, but overall retail sales during the season remain an important gauge of consumer health and a key source of retailer profits. Consumer spending on goods and services accounts for nearly 70% of the nation’s economic activity.

    Although retail sales and consumer confidence fell in October, people feel differently about the holidays.

    “We’re seeing disproportionately more optimism as it relates to holiday shopping versus regular day-to-day and regular discretionary shopping,” said Mrin Nayak, a managing director and partner leading holiday research at Boston Consulting Group.

    Consumers want major discounts, and they are likely to find them this year. Holiday discounting lagged in 2020 and 2021 in response to economic uncertainty and fueled by consumers’ increased savings during the stay-at-home era of the pandemic.

    Given the precarious situation of many consumers, retailers know that shoppers are demanding major discounts — and will hold out for the best deals. Analysts project that many shoppers will also rely on credit cards or buy-now-pay-later programs to finance their holiday purchases, a strategy that carries the risk of added interest and other costs.

    Many retailers offer buy-now-pay-later programs. And most buy-now-pay-later apps — backed by companies including Afterpay, Klarna and Affirm — let users split their final bill into four interest-free payments, an attractive alternative to using credit cards, which have an average interest rate more than 19%, according to November data from Bankrate.

    “The consumer is bargain-hunting this year,” Nayak said. “They are looking for deals to counter inflation, and they are looking to make sure that they’re shopping at places that give them really differential value versus the rest of the year.”

    The latest Adobe Analytics figures show that in the days leading up to Black Friday, retailers were already marking down products in popular categories: Electronics, appliances, toys and apparel were discounted on average more than 20%.

    “I think because we’re seeing this level of discounting that we’re profiling across these categories, it’s helping keep consumers incentivized to spend this season,” Pandya said. “But we’re expecting the discounts to get bigger and better on these major days between Black Friday and Cyber Monday.”

    Low unemployment is expected to help power the shopping season. The U.S. job market has remained steady despite pressure from rising interest rates, with employers adding an average of 204,000 jobs a month between August and October.

    “The unemployment rate is extremely low, so people are getting a paycheck,” Noceti said.

    Gen-Z and millennials are predicted to spend big this year, fueled by low unemployment and healthy wage gains in their demographics.

    “Labor markets have disproportionately favored younger generations that might have more disposable income this holiday season,” Nayak said. “And so we’re expecting to see that divergence in the consumer based on generation on willingness to spend.”

    One third of Gen-Z and millennials plan to spend more on holiday gifts than last year, according to findings from Boston Consulting Group. At the same time, only 20% of baby boomers plan to spend more, squeezed by inflation and fixed income budgets.

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    Carly Olson

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  • Video: Opinion | Your Rewards Card Is Actually Bad for You, and for Everyone Else

    Video: Opinion | Your Rewards Card Is Actually Bad for You, and for Everyone Else

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    This is a story about you and your favorite credit card, the one that earns you points. You use your card for everything. You pay off your balance every month. And you watch with glee as your rewards grow and grow and grow. And when it’s time to cash in, you announce that you’re going to get a family gift. And each member will get one vote. And then your daughter argues that the family needs another iPad. And your son has fallen in love with the ugliest garden gnome that you’ve ever seen. And so to break up the skirmish, you decide that you’ll be getting the frying pan. Because what brings the family together more than food? Marty is the answer. But let’s keep him out of this. And when they complain and say, “But that’s not what I wanted,” you look them in the eye and say, “This was never about you.” “It’s about us, all of us.” And then two weeks later your frying pan arrives. And you can’t help but smile because you kind of did get this for yourself, though you’ll never admit it. And you’re looking at the frying pan. And it’s staring at you and you at it and it at you and you at it. And you just have this split second where you think to yourself: Who actually paid for this? Who pays for all of this? Well, if you love your rewards card, then you’re probably not going to like the answer. Because you try to be a good person, you shop locally. And each week you buy, let’s say, $100 in groceries from MJ. When you swipe your card, that $100 doesn’t go straight to MJ. Instead, store owners are charged a series of fees, the largest of which is called the swipe fee. It’s set by the card network, usually Visa or Mastercard. And your bank uses it to pay for your rewards. The swipe fee is usually between 1.5 percent and 3.5 percent of your total. The more premium your credit card, the more that MJ is charged. Now, that might not sound like much. But it can add up. For small businesses like MJ’s, swipe fees can be one of their biggest expenses. And small stores like hers get charged higher rates than big-box competitors. In order to cope, store owners like MJ raised their prices. That means that all of us are paying more. But only those who have special cards are getting rewards. And here’s the catch: The wealthiest Americans tend to have the best cards that give them the most rewards, while poorer Americans are more likely to pay in cash or debit with no rewards or benefits. So what we really have is a system that forces everyone to pay higher prices in order to subsidize rewards that primarily go to the wealthy. So this rewards card, it’s really a screw-over-poor- people card. Every time you use it, you’re contributing to inequality, helping to drive up prices and further squeeze the most cash-strapped Americans, all so that you can get that free frying pan. You’re probably not benefiting from rewards as much as you thought. In 2020, the Federal Reserve found that the average American at every income level loses more to swipe fee price hikes than they earn in rewards. And of course, the poorest Americans are still getting handed the worst deal. On average, they pay five times more in price mark-ups than they’ll ever receive in rewards. Why are we stuck in this system? Why are swipe fees in the U.S. nine times higher than they are in Europe? Why do we have to pay so much just to pay? Well, it’s largely thanks to two companies, Visa and Mastercard. This system is their core business. It’s what they do for a living. And, sure, they’re providing a service and deserve to earn a profit. But these two companies control over 80 percent of the credit card market. With scant competition, Visa and Mastercard have faced little pressure to rein in swipe fees. The truth is for the vast majority of Americans, the best deal might not come in the form of a new piece of plastic but instead a new piece of legislation. That’s because Congress has the power to regulate swipe fees. In fact, in 2010, they did just that for debit cards. Remember the swipe fee on that $100 grocery purchase? If you paid with a debit card, it would have only cost MJ 26 cents. Dick Durbin, the senator who helped crack down on swipe fees for debit cards, has authored a bipartisan bill that would use competition to drive down credit card swipe fees. But the banks and credit card companies are, of course, pushing back. Right now, there are two things that you can do. First, call your senator and encourage them to support this bill. You can go to this website to find their number. Second, if you’re shopping at a small business that you want to support, remember that how you pay can make a difference. Using your debit card can save small businesses a lot in swipe fees. But the best solution might be elsewhere in your wallet. Increasingly, small businesses are offering discounts for cash payers. Avoiding this predatory system can be a win for both of you. And if those rewards are just too good to say goodbye to, well, then at least don’t go around telling people that you’ve never taken a handout, because you have. And the working class is paying for it. [MUSIC PLAYING]

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    James Robinson and Emily Holzknecht

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  • Q&A with Jeri Scheel on digital solutions at Fiserv | Bank Automation News

    Q&A with Jeri Scheel on digital solutions at Fiserv | Bank Automation News

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    Technology service provider Fiserv continues to invest in its digital solutions including its digital wallet platform, CardHub, which allows real-time controls, transaction monitoring, digital wallet support and enables digital issuance of new, lost and stolen replacement debit and credit cards. 

    Fiserv clients include Microsoft and Google, as well as banks like Fort Lauderdale, Fla.-based Evermore Bank and Marlborough, Mass.-based Main Street Bank. The technology provider has a “variety of clients already using the digital issuance solutions and is adding more every day,” Jeri Scheel, senior director of product strategy for digital solutions at Fiserv, told Bank Automation News.

    Bank Automation News sat down with Scheel to discuss digital issuance, adoption of the digital wallet and CardHub enhancements for digital card issuance, and more. What follows is an edited version of that conversation. 

    Bank Automation News: What is the state of digital wallet adoption today? 

    Jeri Scheel: Digital wallets are one of those areas that [have] really taken off as a result of the pandemic. A recent study, 2023 Global Payments Report, found in the last eight years in North America, digital wallets have become the leading online payment method. Digital wallet growth has actually come at the expense, to a degree, of cash. Cash use is down to 16% usage globally, and it’s expected to go down to 10% by 2026. So, cash is not king in this aspect. 

    Digital cards really help a financial institution meet cardholders’ unmet needs. Clients don’t have to go to a branch to pick up a card, they don’t have to wait up to 10 days to get their plastic, they don’t even have to be home to get the card. This is useful, for example, in high-stress situations when a card is lost during travel or when a card has been compromised. The client benefits because they can receive a new card digitally, and the financial institution benefits because the cardholder can start using the card immediately. 

    BAN: What are the benefits of the shift to digital issuance? 

    JS: The immediate benefit for digital issuance for financial institutions is revenue. Digital issuance means transactions, it means loyalty, it means engagement. FIs can issue a card and clients can keep transacting while they wait for a plastic card. 

    Additionally, FIs can avoid rush charges. If a client is on vacation or a business trip and needs a card, instead of shipping them a card, they can have immediate access to make transactions. 

    The Fiserv digital issuance product launched in March with a total of six clients. 

    BAN: How does digital issuance work? 

    JS: Within the digital experience, you get a text message, you click on it, and the card gets added to your digital wallet. When the plastic card arrives, there’s nothing else you have to do. If you don’t have digital issuance, and you get your plastic card, you would have to physically put it in the digital wallet. Whereas with digital cards, you’ve done it already. The CVV automatically updates in your wallet, and you have the plastic card available for your card-present transactions. 

    BAN: What is Fiserv working on in 2023 within the digital issuance space? 

    JS: Since March, Fiserv has issued about 15,000 digital cards and client and cardholder feedback has been taken very seriously. Through feedback, Fiserv has determined that one area that needs attention is the delivery of digital cards through text message. 

    When a digital card is delivered via text, the URL can be lengthy and might even be mistaken for spam. Fiserv is looking to convert the digital card URL into something more easily recognizable by consumers. 

    Get ready for the Bank Automation Summit U.S. 2024 in Nashville on March 18-19! Discover the latest advancements in AI and automation in banking. Register now.

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    Whitney McDonald

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  • George Santos Charged With Stealing Donor Identities, Using Their Credit Cards

    George Santos Charged With Stealing Donor Identities, Using Their Credit Cards

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    According to a new indictment, embattled Rep. George Santos (R-NY) stole the identities of campaign donors and used their credit cards to ring up tens of thousands of dollars in unauthorized charges. What do you think?

    “Stealing from wealthy Republican donors is actually pretty progressive of him.”

    Jake Hobbs • Code Developer

    “I always assume every politician I donate to owns me from then on.”

    Dennis Flusche • Unemployed

    “What was he supposed to do, earn the money?”

    Rosemary Castelli • Service Advisor

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  • FTC Issues Fines For Sassy Retail Employees Who Cut Declined Credit Cards In Half

    FTC Issues Fines For Sassy Retail Employees Who Cut Declined Credit Cards In Half

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    WASHINGTON—Cracking down on the common but unethical practice seemingly rampant in department stores, the Federal Trade Commission began issuing fines this week for any sassy retail employee who held up a customer’s declined credit card and cut it in half. “A lot of these snobbish retail employees seem to derive a sick pleasure out of dramatically snipping the credit card belonging to a self-described shopaholic in half, rather than the standard procedure of handing the card back and simply informing them it’s been declined,” said FTC chair Lina Khan, explaining that these workers got away with the practice for years by blaming the credit card companies, claiming “they told me to do that” on the phone when the shopper looked at them, shocked. “This has been happening since the early 90s, and it’s time we took it seriously—that’s why there will now be a $200 minimum fine for any gum-smacking cashier with scissors in their hand, no exceptions. It’s not only about financial privacy concerns, we also want to cut down on the mental anguish that a consumer is put through when these rude sales associates inform them that they must go and have a little chat with their manager, which they proceed to do behind a nearby door with a little window, allowing them to look back at the customer and snicker within view. These people need to learn that just because you work at a mall, you do not get to be a smug mean girl and get away with it.” At press time, the FTC had issued a warning to American consumers to be especially wary of any retail employee possessing a vaguely French accent and dressed in all black.

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  • Edward Jones taps Citi for BaaS | Bank Automation News

    Edward Jones taps Citi for BaaS | Bank Automation News

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    Wealth management company Edward Jones selected Citibank on Aug. 15 to provide bank accounts to its more than 8 million clients.  The St. Louis-based company will also integrate Citi Alliance, the bank’s lending service, into its platform to provide loans to its customers, according to an Edward Jones release.  “Citi has an industry-leading lineup of […]

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    Vaidik Trivedi

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  • Issuers seek relaxation on certain product categories for card network portability

    Issuers seek relaxation on certain product categories for card network portability

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    Card issuers have approached the RBI seeking relaxation for certain products from the revised guidelines on card network portability, due to the high costs involved.

    Card issuers, majority of which are banks, have sought that the central bank impose the mandate for network portability for each product category or segment but not each product, given the higher cost and operational burden involved and the impact on existing card partnerships.

    “Issuers are saying just leave network options at the core product level that is, credit, debit, and prepaid. There are diversified cards within core products like co-brands, premium cards, etc. Management of sub-products will definitely become a challenge because each bank has hundreds of sub-products based on the customer segment,” said Mohit Bedi, Co-founder and Chief Business Officer, Kiwi- India’s First Credit Card on UPI Platform.

    Network portability

    The revised draft framework on network portability mandates issuers to offer every card on at least two networks and not to enter into bilateral arrangements with card networks, effective October 2023. Five networks currently operate in India, namely Visa, Mastercard, NPCI-backed RuPay, American Express and Diner’s Club.

    “The differentiating factors for networks are pricing, extent of their acceptability and the rewards that they offer. Fundamentally if another network is better across any of these, people should have the choice to opt for it but today that option does not exist,” said Abhishek Kothari, CEO, Pepper Money India.

    As such, most issuers have also been offering cards across more than one network after the data localisation framework asked some networks to temporarily pause new sourcing. Subsequently, YES Bank, which was entirely dependent on Mastercard, was forced to tie-up with other networks.

    Exemptions sought

    Exemptions have been sought in certain cases where service providers have exclusive tie-ups with networks such as Visa with the JetMiles programme or Amazon, or RuPay network for FASTag.

    For example, the ICICI-Amazon credit card is issued on the Visa network because Visa worldwide categorises e-commerce platform Amazon as a separate Merchant Category Code (MCC), thus levying a lower interchange of about 1.65 per cent compared with other merchant categories.

    “It becomes tricky in some situations, for example, Diners Club, which works exclusively with HDFC Bank. The Diner’s card is not available with other banks because Diner’s Club has much better product features as a network too. Similarly, NCMC (National Common Mobility Cards) are on Rupay only, it’s a prepaid card. How will that work? So, it becomes a new challenge for other sub-product categories as well,” Bedi said.

    There is also the issue of proprietary cards such as American Express, which is both an issuer and a network and its ability to then issue cards on other networks.

    Issuers then prefer a certain network because their cost expense is lower, industry players said, adding that even on an overall basis, while the interchange on Visa and Mastercard is almost four times that on RuPay, the global networks reimburse issuers for marketing costs which is a big line of fee income for banks. However, RuPay offers the additional benefit of linking credit cards to UPI.

    “In India, where cards are expected to grow significantly, this will ensure fair competition for networks to exist. Amidst this, RuPay being a new network should likely benefit as there are legacy contractual arrangements in place,” Kothari said, adding that while for card issuers this could translate to onboarding new network partners and higher operational costs, it would also mean more features and offers for consumers.

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  • SBI Card enables RuPay credit cards on UPI

    SBI Card enables RuPay credit cards on UPI

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    SBI Card, the country’s largest pure-play credit card issuer, and the National Payments Corporation of India (NPCI) have announced the linking of SBI credit cards on the RuPay platform with the Unified Payments Interface (UPI). Starting Thursday, SBI Card customers will be able to make UPI transactions through their credit cards issued on RuPay.

    The functionality can be availed through registering the credit card with third-party UPI apps. This will further enhance the avenues for customers using SBI Card on the RuPay platform at UPI merchants, thus facilitating an enhanced, convenient, and seamless payments experience.

    Cardholders can enrol their active primary cards on UPI and make payments to merchants (P2M transactions) using their credit cards. This facility is free for customers.

    To ensure successful credit card linking with UPI, it is important to note that the cardholder’s mobile number registered with SBI Card should also be linked with UPI.

    As of June 2023, SBI Card had a cards-in-force (CIF) base of 1.73 crore, up 21 percent year-on-year as of June 2022.

    Commenting on the move, Rama Mohan Rao Amara, MD and CEO, SBI Card, said, “With this functionality, SBI Card customers will be able to use their SBI Card-issued RuPay credit cards on the UPI platform. Today, UPI has become a massive digital platform, enabling millions of transactions every day”.

    Flexibility

    This should give SBI Card customers greater flexibility and mobility along with hassle-free usage, he added. With this, the industry is going to witness a significant increase in credit card usage, Amara noted.

    Dilip Asbe, MD & CEO, NPCI, said, “The addition of SBI RuPayCredit Cards on UPI rails is a big milestone in the growth trajectory of digital payments in India. This partnership will enable seamless UPI payments for SBI RuPay credit cardholders, providing them with a digitally enabled credit card lifecycle experience”.

    With the rising demand for credit cards in the country, it becomes imperative to continuously build innovative payment solutions, such as linking RuPay Credit Cards with UPI, that are convenient, swift, and secure, Asbe added.

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  • Loan given to credit-card holders cannot attract GST: Calcutta HC

    Loan given to credit-card holders cannot attract GST: Calcutta HC

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    Loan given to credit-card holders will not be different from normal loan and will not attract Goods and Services Tax (GST), Calcutta High Court has ruled.

    The issue here was whether loan given to a credit-card holder should be treated as part of credit-card services or like any other loan provided by a financial institution. This issue is critical as a notification, dated June 28, 2017, exempts loan transactions from GST, but interest charged for credit-card services are not exempted. Earlier, a single judge bench had ruled that interest charged on loan given to credit-card holder is exigible to GST. Later, an appeal was filed.

    The appellant was offered a loan of ₹6.50 lakh being “increased pay lite loan” for 12 months with interest at the rate of 13 per cent per annum payable in 12 equated monthly instalments. The loan amount was disbursed by the bank by an account payee cheque. The entire loan amount along with interest was repaid along with GST.

    ALSO READ | GST Council meet on Aug 2 to finalise rules for implementing 28% GST on online gaming, casinos, horse-racing

    After going through all the facts presented and arguments made, both the judges, Justices IP Mukherjee and Biswaroop Chowdhury, recorded their remarks individually, before arriving at a common point that loan given to a credit-card holder is not part of credit-card services.

    According to Justice Mukherjee, if the loan was advanced to the appellant through use of the card, then one could have understood that the service was related to the card. In this case, the bank declared the appellant card holder to be eligible to receive loan. His loan amount was advanced by a cheque or draft issued by the bank.

    “That is to say, the loan amount was not generated by charging the appellant’s card. It appears in the monthly statement issued in relation to use of the card, that the loan amount was shown and the equated monthly instalment payable indicated. In my opinion, it was only a statement of account,” he said.

    “The loan transaction had to be taken as an altogether separate transaction. It had no relationship with the relationship between the appellant and the bank arising out of issue, holding or operation of the credit card. Hence, the appellant’s above transaction with the bank was a service which could not be termed as a credit card service and was not exigible to the Integrated Goods and Service Tax under the notification dated 28th June, 2017,” he said.

    ALSO READ | Credit card spends fall 2.4% in June after touching record high in May

    Justice Chowdhury observed that AaBanking Institution has a discretion whether to give loan to a credit-card holder but once it chooses to grant loan to a credit-card holder, it has to treat the loan similar to other types of loan, and cannot treat the same as credit card facility and charge goods and service tax on it. 

    The basic difference between loan and credit card is that the former is granted as a necessity and is a welfare scheme and the later is a facility granted to customers to get goods and services on credit from 3rd parties by availing the credit card cervices of the bank regarding payment. Thus, “loan and Credit Card Services cannot be equated,” he said.

    Accordingly, the bench directed tax department to immediately refund the GST paid by the respondent bank on account of the said loan transaction of the appellant to the respondent bank which in turn will refund the amount on furnishing proper accounts to the appellant.

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  • TD Bank invests in credit card solutions, digital experiences | Bank Automation News

    TD Bank invests in credit card solutions, digital experiences | Bank Automation News

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    TD Bank is investing in its digital experience as the bank upped tech spend in the first quarter and launched two new credit cards in May. The Cherry Hill, N.J.-based bank introduced monthly subscription-based, no interest credit card TD Clear and flexible payment credit card TD FlexPay, according to a release from TD Bank. The […]

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    Whitney McDonald

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  • Citigroup plans new credit card for use with multiple retailers | Bank Automation News

    Citigroup plans new credit card for use with multiple retailers | Bank Automation News

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    Citigroup Inc. plans to debut a new credit card with multiple retailers that consumers will be able use for larger purchases. The new card, known as Citi Pay Credit, comes from the lender’s retail-services unit and will be digital only, according to a statement Wednesday. Citigroup is lining up retail partners for the card and […]

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    Bloomberg News

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  • Credit cards outstanding up a record 29.6% in FY23 till end-Jan

    Credit cards outstanding up a record 29.6% in FY23 till end-Jan

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    The total credit card outstanding in the current financial year so far, has increased significantly, at 29.6 per cent, compared with last year, according to Reserve Bank of India (RBI) data.

    The credit card outstanding stood at ₹1,86,783 crore as on January 27, 2023, (first 10 months of FY23) as against ₹1,44,162 crore in the year-ago period. In the comparable period of FY22, credit card outstanding grew by 9.3 per cent compared with the previous financial year (FY21).

    “Credit card usage has recently surged due to an increased discretionary spending on vacation, travel, entertainment and consumer durables,” BIbekananda Panda, Senior Economist, State Bank of India, told businessline.

    ‘Dramatic shift’

    “Following the pandemic, the credit card space has undergone a dramatic shift as ease of payments, mass acceptance of credit cards without additional fee. An analysis of the RBI data shows that the spurt in credit card outstanding is primarily driven by positive factors,’‘ Panda added.

    According to Krishnan Sitaraman, Senior Director and Deputy Chief Ratings Officer, Crisil Ratings, this is “clearly a reflection of the economy bouncing back’‘ and rebounding well after the pandemic.

    “We see a spurt in card usage in hospitality, travel/leisure, utility bill payments, healthcare, education, consumer durables, and e-commerce in general. More than 60 per cent of the card spends are now for online transactions. There has been a growth in incremental spends as well as spend per card. Cards in force have also gone up. From an asset quality perspective, we are not seeing any material increase in delinquencies as of now but that is what will be important to monitor and manage if NPAs are to be kept under control,” he added.

    The incremental credit card spend in the current financial year so far (till January end) has gone up by 50 per cent along with an increase in spend per card. The current data should be read in the context of low credit card penetration in India, said Prasanna Tantri, Executive Director, Centre for Analytical Finance, Indian School of Business (ISB).

    “The total outstanding credit card balance is less than 2 per cent of bank credit and 2.5 per cent of our annual savings,’‘ he added.

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