Credit cards: how is the interest on installments and the minimum payment after the rate increase

The interest rate increase applied by Central Bank (BCRA) after knowing the information of inflation impacts the entire financial system, including purchases with Credit cards. Therefore, those who pay for their products and services with plastics will start to pay more for their consumption.

In this way, the differential rate for credit cards will go from 107% to 122%, after an increase of 15 percentage points. Along the same lines, the yield of the 30-day fixed term increased by up to $30 million, which rose to 133%.

In that sense, an expert source on the subject explained that with this new adjustment the BCRA sample provision in “seeking that the performance of the fixed term does not lag so far behind the consumer price index.”

In that sense, the founder of AsesorDeInversiones.com Alejandro Bianchi He told Ámbito that in addition to the card rates becoming more expensive, the subsidized rate of Ahora 12 became more expensive, which will be known on Monday. In this way, for those who make the minimum payment, they will have a higher financing cost, around 122%.

Forms of credit card financing

Now, when choosing the method with which to go into debt, it is important to take into account the different options that exist to take care of the home economy and choose the one with the lowest interest rate.

The most common forms of financing are personal loans and credit card payments.

In this context, the analyst F2 Financial Solutions, Andrés Reschinistated that under this scenario “with rates running behind inflation, it is very common to try to get rid of the pesos by purchasing durable or consumer goods and if it can be through card installments, the better.”

Likewise, he stressed that while real wages fall and financial conditions deteriorate, which is why “The margins of the cards often fall in real terms and each time it is enough to buy fewer quantities“.

Each user’s credit card has a purchase limit so that the customer can spend on different operations, paying interest only on the money actually used. in the messure that return the money A greater quota will be available, without exceeding the established limit, which will be related to the solvency that the bank considers the client has.

Card credit payment methods:

• Full payment: the total sum of that month’s summary is paid (all installments with interest included if any, plus bank administrative expenses).
• Partial payment: you can pay less than the total that arrives in the monthly payment of the card, but more than the minimum. There is the possibility of making partial payments. The difference with the full payment will be that the new outstanding balance will generate new interest, which will be calculated based on the amount that was outstanding and how long it takes to pay that balance.
• Minimum payment: Another option is to make a minimum payment, if you cannot raise all the money necessary to make the full payment. This option involves paying additional interest on top of the original interest, which will be calculated based on the time and amount owed.

If at least the minimum is not paid, the card will be blocked.