Credit cards are becoming increasingly popular around the globe. Their procedures, requirements and structuring may vary from one country to another, depending on the market and central bank regulations. For example, Brazil is often mentioned to have the highest interest rates in the world. Their credit card rates can reach 10% per month, or 120% APR. Credit cards in India can include airplane hijacking insurance. Let's compare the credit card features and borrowing traditions in different countries.

Canada

Canada has nearly the same credit system as America: there are secured and unsecured credit cards, rewards credit cards, business credit cards and student credit cards. Average APR of Canadian credit cards is around 19%.

An applicant should be above 19 years and have a Sociable Insurance Figure. Credit history is an important factor in qualifying for a credit card. There are the same three reporting agencies: Equifax, TransUnion, and Northern Credit Bureau (an Experian company). However, there is a difference: a consumer may order a free copy of their credit report any number of times in a year.

The Government of Canada maintains a database of fees, features, interest rates and reward programs of nearly all credit cards available in Canada. The information is published on the Financial Consumer Agency website. It helps customers to compare the credit card features or find plastics that fully suit their requirements.

China

The number of credit cards issued in China jumped to 40 million in the past two years. However, China's tradition is "save first, and then spend". Due to the conservative borrowing habits it is extremely difficult to run business in that country. Banks try to attract new clients using special promotional actions. For example, Bank of Communications lets their customers make interest-free installment payments on purchases over 1,500 Yuan.

The interest rate is set by the Government: 0.05% a day, or 18.25% a year. Customers also pay a monthly service fee - about 0.7% of the purchase price. Cardholders who earn at least 50,000 Yuan a year can get a credit limit as high as 50,000 Yuan and grace period up to 56 days.

Russia

Nowadays there is a great progress in Russian credit system: requirements to potential lenders are becoming less strict, APR is going down, and credit limit is increasing. However, most Russian citizens still prefer to pay with cash. There are some towns where you can hardly find a store accepting plastics. That's why the most popular operation with credit cards is withdrawing cash through ATM.

Russian credit cards typically don't have additional perks and benefits. There are still practically no rewards programs or credit insurances.

Islamic countries

The credit companies in Islamic countries don't generate profit from lending money because they don't charge any interest or late payment fees. Islam prohibits any predetermined profit arising from the loan. However, there can be a small annual fee charged for credit card maintenance.

The credit card balance is paid through installments within a set period of time. Sometimes you may need to make a deposit before you get a plastic. A credit limit will be based on the amount you deposited.

According to the strict rules, Muslims can use their plastics only for 'Halal' purchases or services (permissible under Islamic laws). You cannot buy alcohol or cigarettes or use your plastic in nightclubs and casinos. Otherwise, the plastics can be immediately withdrawn.

Copyright © 2007-2010 www.unioncreditreport.com. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Share Opinion:

           

Comments

Cyril Jones, 12:16 AM, May 05, 2008
That\'s interesting! Thank you for information!

If you have something to say, please leave your comments below.

Your Name: *
Your Email:
Your Comment: *
Enter Number from Picture: *
* - Required Fields