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Credit card: sharp rise in rates to finance with plastic

2023-04-28T18:07:40.254Z


The new rise in interest rates ordered on Friday by the Central Bank raises the cost of credit. Paying the minimum of the credit card is more and more expensive . The decision of the Central Bank to raise the reference rate also had an impact on the rates paid for refinancing with the plastic. That is, if one pays the total amount consumed in the month, the cost is zero. But if one, on the other hand, pays the minimum or leaves a charge unpaid, that item generates an interest rate of 80%. U


Paying the minimum of the credit card is more and more expensive

.

The decision of the Central Bank to raise the reference rate also had an impact on the rates paid for refinancing with the plastic.

That is, if one pays the total amount consumed in the month, the cost is zero.

But if one, on the other hand, pays the minimum or leaves a charge unpaid, that item generates an interest rate of 80%.

Until last week they were three points less.

The impact in May is not due to the decision that the entity made this Thursday, but rather it is due to the increase decided seven days ago.

This last adjustment, on the other hand, will impact late statement payments starting in June.

Now banks and other financial institutions must

"notify cardholders of this limit prior to its application."

These rates apply to

debts of less than $200,000

.

If the amount exceeds that figure, each bank will charge a rate that may not exceed 25% of the rate charged for personal loans.

That is to say, if an entity charges a

100% rate for a personal credit, it cannot demand more than 125% to refinance with the credit card.

The Central Bank (BCRA) announced a rise in the interest rate for fixed terms and introduced a change, it is no longer for deposits of up to $10 million, but now they are

stretched up to $30 million.

At a time of such high inflation, in March it marked 7.7%, forcing in many cases to leave some consumption unpaid or even pay the minimum.

All the surplus earns interest that is increasingly expensive.

For what it is now it became more convenient to consume and cover the total payment of the month's consumption.

NS

look also

Fixed term simulator: with the new rate, how much do banks pay to invest $50,000 or $100,000

The 10 increases that will hit pockets in May

Source: clarin

All business articles on 2023-04-28

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