Given the reductions in interest rates of various financial institutions that went from 46% to 25%, this could encourage consumption and misuse of credit cards, therefore, you have to read very well and know the long-term cost term.
News Colombia.
In many homes, the monthly cash flow is difficult, so credit cards become immediate sources of financing, when in reality they are just a means of payment, but you have to know how to better manage it.
During the days, several financial entities decided to lower their interest rates, including Bancolombia, Davivienda, Banco Bogotá, Falabella and others.
In Falabella, these are the conditions.
“It may be a strategy of financial institutions in the face of such high delinquent portfolios, which means that banks have less liquidity to work with and one of the solutions is to lower the interest rate or they also seek to encourage consumption,” explained John Jairo Bustos , financial and tax advisor.
This, taking into account that Colombians are used to handling rates of 18.25% but given the increase of 45%, they have restricted themselves to the use of the “tazo”.
Five recommendations with the credit card
- Buy at a single installment, so you avoid generating interest.
- It is important to review the conditions of the credit card, since many have benefits such as cash back, miles, agreements and discounts.
- Look at the cut-off dates of the card and take advantage of it, because this way you can earn 50 interest-free days.
- Do not have many credit cards unless you are an organized person to know your cut-off dates and which card is best for you.
- They can raise your credit score or lower it; When you cover more than 30% of your credit and it is deferred to several installments, a message is sent that that quota is needed and that can subtract points.
In the case of banks that are offering a reduction of 25% or even less, read the conditions carefully.
It is necessary to know in detail, if it is for a short period, for which purchases it applies and for which quota of the TC this reduction applies. It’s not with everyone.
Reduction of interest rates: Alejandra Giraldo spoke with a financial analyst about the impact that this would have on consumption and gave recommendations so as not to fall into harmful use of credit cards.
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