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Sunday, February 21, 2010

Moving on with my fantastic projects and why you should say no to BMO Bank of Montreal MasterCard

Ok, I go laid off from BMO Bank of Montreal, but it doesn’t mean it will stop me in my projects. I am actually better this way when it come to BMO Bank of Montreal. Want to know why? BMO Bank of Montreal recently had another bad idea, after my laid off. BMO Bank of Montreal came recently with this: they had reduced the payment on its very disgusting BMO Bank of Montreal MasterCard to 2%. This new measure is being valid for BMO Gold Air Miles MasterCard, BMO Air Miles MasterCard, BMO Premium CashBack MasterCard, BMO CashBack MasterCard, BMO SPC Air Miles MasterCard, BMO SPC CashBack MasterCard, BMO Preferred Rate MasterCard, BMO Prepaid Travel MasterCard, BMO U.S. Dollar MasterCard and BMO MasterCard for Business.

Usually, on credit card, customers had to pay the minimum of 3% of the balance they own on the credit card. Now, thinking being smart, BMO Bank of Montreal is reducing the payment to 2%. What’s supposed to be a good gesture is really not. And I am going to explain why. Credit card debts are not good debts. By reducing the minimum payment of their credit cards to 2%, BMO Bank of Montreal is helping Canadians to increase their level of debts. And nothing more than that.

Ok, you might told yourself, the poor girl had been laid off from BMO Bank of Montreal and she has more than 20 000$ in debts. Yes, I have more than 20 000$ in debts. But those debts are good debts. The interest rate for those debts is not 19.5% like on regular BMO Bank of Montreal MasterCard. Ok, BMO Bank of Montreal offers a 11.9% interest rate on credit card, but they charge for it. The fee is 35$ per year. Is that being brilliant? No that’s being dumb.

And what BMO Bank of Montreal customers do not know, unfortunately, is that BMO Bank of Montreal is not welling to help reducing their level of debts. BMO Bank of Montreal is actually going on the exact opposite direction. BMO Bank of Montreal hidding message is: « please fully use your credit card, reach your limit and enjoy. You don’t have to worry about one thing; you’ll only have to pay 2% of the full amount due. » This is how BMO Bank of Montreal is helping Canadians: by creating more debts. Which is really really bad. The exposure to heavy debt can rise easily with this new payment rule.

Credit card debts are the worst kind of debts an individual can hold. When it comes to credit products, you need to play smart. Instead of having a credit card with BMO MasterCard that you are paying 35$ per month to have the too high interest rate of 11.5%, why customer do not turn to TD Canada Trust an open a credit line at 8% interest rate, free of charge by the way. Why customers are willing to pay 35$ for a higher interest rate while its possible to get a lower interest rate, at no extra fee, with another bank? You have one life, one credit life. Do not let it ruin by BMO Bank of Montreal MasterCard. Be smart. And don’t forget to beat the steel when it’s hot… ok?


Financial Cents said...

Not pleased with BMO eh? Good for you, you don't seem worried!

Anonymous said...

Pretty obvious this is purely emotional. If you have a credit card and use it properly (e.g. pay it off...) then the interest should not matter. The fact that they are discounting something that could cost you more is always a good thing. You don't mention that they are one of the best branches for TFSA among the big Canadian banks. Consumer beware... sounds like you've just got a grudge from being laid off.


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