The Central Bank set the new interest rate paid by credit card users - Infobae
Source:
www.infobae.com
January 09, 2024
Under the administration of Santiago Bausili, the monetary authority increased interest rates for credit operations.
From January 2024, interest rates for credit operations increase to more than 140%
The Central Bank made official this Monday the value of the interest rate that will be applied to credit operations for January. This will be 140.86% annual nominal.
In communication B, the monetary authority established: “The value of the interest rate of the financial system for personal loan operations without real collateral mentioned in point 2.1.2. of section 2 of the regulations on 'Interest rates in credit operations', corresponding to the information for December 2023, will be applicable for operations in the January 2024 billing cycle."
This rate will apply to those who do not pay the minimum monthly amount of the credit card and will be applied to the unpaid amount due. It should be remembered that the minimum payment is the lowest amount required by banks to maintain the credit card and not fall into default.
Meanwhile, according to Communication A 7937 of the Central Bank, the rate may not exceed by more than 25% the average figure of the financial system for personal loan operations without real collateral.
According to the Justicia Cerca website, there are some keys to keep in mind when using and paying the credit card to avoid inconveniences and interest payments.
As for the payment options that exist, there is the total payment which consists of paying the entire monthly installments and in this way, comply 100% with the terms agreed between the card and the client.
Then, there is the alternative of partial payment, through which an amount greater than the minimum payment is paid but not reaching the total . The difference between the full payment and the partial payment will be reflected as an outstanding balance. Interest will be calculated on this.
It is important to remember that if only the minimum payment is made, additional interest will be generated on the remaining balance, since the card will be financing the expenses.
The third option is the minimum payment, which entails the payment of additional interest that is calculated based on the time and the amount owed .
In order to avoid accumulating increasingly high debts, it is better to pay the full amount whenever possible or leave a smaller balance for refinancing.
On the other hand, it should be noted that if the user is late in paying their credit card, the entity cannot charge them a fine, but it can apply interest. Therefore, it is important to pay attention to the expiration date indicated on the summary.
If the statement expires and no payment is made, it will technically be “delinquent.” From that moment on, two types of interest will be generated: compensatory and punitive. The first are those that are applied directly to offset the debt over the agreed amount; The second are those that “punish” the default, applying surcharges to the pre-existing debt.
With the new regulations, this will be the reference for all fixed terms, that is, there will be no distinction between retailers and . The first universe of human beings who used this type of instruments for up to $30 million were validated with higher returns, something that will no longer continue in force.wholesalers
The BCRA board made other decisions in order to “clarify and simplify the monetary policy rate signal.”
Source:
El Banco Central fijó la nueva tasa de interés que pagan los usuarios de tarjetas de crédito
Bajo la administración de Santiago Bausili, la autoridad monetaria aumentó las tasas de interés para las operaciones de crédito.
www.infobae.com
January 09, 2024
Under the administration of Santiago Bausili, the monetary authority increased interest rates for credit operations.
From January 2024, interest rates for credit operations increase to more than 140%
The Central Bank made official this Monday the value of the interest rate that will be applied to credit operations for January. This will be 140.86% annual nominal.
In communication B, the monetary authority established: “The value of the interest rate of the financial system for personal loan operations without real collateral mentioned in point 2.1.2. of section 2 of the regulations on 'Interest rates in credit operations', corresponding to the information for December 2023, will be applicable for operations in the January 2024 billing cycle."
This rate will apply to those who do not pay the minimum monthly amount of the credit card and will be applied to the unpaid amount due. It should be remembered that the minimum payment is the lowest amount required by banks to maintain the credit card and not fall into default.
Meanwhile, according to Communication A 7937 of the Central Bank, the rate may not exceed by more than 25% the average figure of the financial system for personal loan operations without real collateral.
Keys to use the card
According to the Justicia Cerca website, there are some keys to keep in mind when using and paying the credit card to avoid inconveniences and interest payments.
As for the payment options that exist, there is the total payment which consists of paying the entire monthly installments and in this way, comply 100% with the terms agreed between the card and the client.
Then, there is the alternative of partial payment, through which an amount greater than the minimum payment is paid but not reaching the total . The difference between the full payment and the partial payment will be reflected as an outstanding balance. Interest will be calculated on this.
It is important to remember that if only the minimum payment is made, additional interest will be generated on the remaining balance, since the card will be financing the expenses.
The third option is the minimum payment, which entails the payment of additional interest that is calculated based on the time and the amount owed .
In order to avoid accumulating increasingly high debts, it is better to pay the full amount whenever possible or leave a smaller balance for refinancing.
On the other hand, it should be noted that if the user is late in paying their credit card, the entity cannot charge them a fine, but it can apply interest. Therefore, it is important to pay attention to the expiration date indicated on the summary.
If the statement expires and no payment is made, it will technically be “delinquent.” From that moment on, two types of interest will be generated: compensatory and punitive. The first are those that are applied directly to offset the debt over the agreed amount; The second are those that “punish” the default, applying surcharges to the pre-existing debt.
Other interest rates that the Central Bank modified
Weeks ago, the entity led by Santiago Bausili decided to apply a reduction in the interest rate minimum for fixed-term deposits from 133% to 110% nominal annual, “in a context of a significant surplus of liquidity and high inflation,” as they explained in a statement.With the new regulations, this will be the reference for all fixed terms, that is, there will be no distinction between retailers and . The first universe of human beings who used this type of instruments for up to $30 million were validated with higher returns, something that will no longer continue in force.wholesalers
The BCRA board made other decisions in order to “clarify and simplify the monetary policy rate signal.”
