At the end of last week, the main financial institutions in the country decided to readjust their strategy to boost household consumption and opted to reduce credit card interest rates.despite the fact that the rates of the Banco de la República continue at their highest level in history.
(Average credit card interest rate was 39.6%).
With this, it seeks to boost credit, which has been slowed down due to high inflation.
However, beyond interest rates, there are other aspects that must be taken into account when applying for a credit card and that may be decisive when deciding whether or not to take it.
Also, remember that there are variations both in interest rates and in other aspects to consider, depending on the financial institution or the bank.
The grace periods, as well as the terms and duration of the credits are some very important variables when analyzing the use of a card.
The grace period corresponds to the time from the end of the billing cycle and payment due date and it is the time in which the balance of the card can be put in order to avoid charging interest.
(The options to deal with high rates on credit cards).
Keep in mind that this period is convenient with the date that you receive your income each month, otherwise it could generate headaches and uncomfortable calls when the payment date is passed.
Another aspect to consider is the debt limit, also known as the quota. It is important that each person knows theirs, because it is common for banks to grant you a higher quota than you could pay.
Experts recommend making limited use of a financial product, so it is important that you analyze this aspect when thinking about applying for a loan.
Discounts, insurance and commissions
In general, each financial institution applies commissions to customers who request cards. Review the conditions in each case to avoid future headaches.
(The banks that lower interest and the clients to whom it applies).
Also check if these credits have insurance that may vary from life insurance, travel insurance, insurance against financial fraud and insurance for the protection of purchases.
Finally, check if the entity offers alternative discounts or other benefits such as accumulation of redeemable points or return of a certain percentage.
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