Christmas: Which credit cards offer the lowest rates to finance purchases?

Christmas It is a time full of emotions and multiple purchases, such as decoration, gifts, food, among others. To finance these expenses, many citizens opt for a credit card, but it is important to know what interest rates financial institutions offer to get the most out of them.

According to data from the Superintendency of Banking, Insurance and AFP (SBS)interest rates in soles for credit cards in Peru exceeded 60% per year on average.

As of December 7 of this year, the average TEA (effective annual rate) of the 10 banks that offer this product reaches 58.39%.

However, if the other entities that offer the plastic (two finance companies and a rural savings and credit bank) are considered, whose average rates exceed 65% per year, the total weighted rate will be greater than 60%.

What financial entities have the lowest and highest rate?

People who have or wish to have credit cards in Peru should inquire about the interest rates to which they will agree to pay.

That is why we leave the information corresponding to the interest rates that are applied in financial entities as of December 7 with the SBS report.

Financial entities	Annual rate
Bank of Commerce	26.63%
GNB bank	33.08%
Scotiabank	41.58%
pichincha	43.46%
BanBif	50.44%
BBVA	51.66%
BCP	53.37%
Financial Oh!	59.59%
Interbank	63.26%
Crediscotia Financial	68.14%
falabella	74.92%
Ripley	75.56%
Cencosud Scotia	78.05%

What is the reason for the higher interest rate?

For Jorge Carrillo Acosta, a professor at Pacífico Business School, this occurs in line with the increase in all types of financing in the financial system due to the higher risk that is perceived by the situation and the rise in reference interest rates that the Central Reserve Bank (BCR).

Currently, the reference interest rate of the BCR it is at 7.50%, when in December 2021 it was 2.50%.

What are the recommendations for the use of credit cards?

Carrillo Acosta argued that during the Christmas holidays the use of credit cards becomes more relevant.

“For this reason, it must be used only under the modality of direct credit or total payment (everything consumed each month is canceled), since in this case the interest rate is 0%, and only the tax credit insurance will be paid.”, he explained

The specialist specified that, on the contrary, one should avoid consuming and paying in installments or revolving, since the financial cost is very high.