What do other banks say about lowering interest on credit cards?

The financial entities that issue credit cards began to analyze the commercial commercial strategy that was adopted yesterday Bancolombiathe largest bank in the country, that will lower the interest rate to 25% on purchases of half of the credit cards.

The reduction will apply to 1.3 million credit cards that have quotas of up to $3.9 million starting this Friday for credit cards Classic Visa, Classic Mastercard, American Express Blue, Young Mastercard and Ideal Mastercard.

(Bancolombia credit cards that will have a reduction in interest)

Customers with any of these cards will have a 25% annual effective interest ratewhich is below the current maximum rate of 46% annual effective.

The bank assured that it understands well-being as the ability for each person to have the conditions they consider necessary to live with adequate money.

(Bancolombia lowers interest to about 50% of credit cards).

“We have listened to the needs of the people and, being aware of the reality of the country, we have the priority of taking care of the financial well-being of Colombians. This is how our purpose materializes”, points out Juan Carlos Morapresident of Bancolombia.

When a person finances a purchase, the interest rate that applies to him is that of the day he bought. In this case, as of this Friday, an annual effective interest rate of 25% will apply, which translates into a nominal month in arrears of 1.88%.

(‘We disburse $2 billion for 270,000 women.’)

For edgar JimenezProfessor of Finance at Jorge Tadeo Lozano University“The announcement is interesting because the rates are set by the market with supply and demand and although it is the decision of a banker, other entities will replicate that or proceed with similar measures”.

In addition, he considered it novel since clients could move between entities through portfolio purchases in the face of competition for favorable rates.

(Bogotá launches a microcredit platform for entrepreneurs).

He clarified that the relief is for a segment, but it is important because of the magnitude that represents more than one million customers.

Mario Pardo Bayona, President of BBVA Colombia, said on March 9 that there is a decrease in the demand for credit and the slowdown of the economy is healthy so that there is reasonable growth since the one that occurred in 2021 and 2022 was unsustainable. “Interest rates will begin to drop in the following months“, said

BRIEFCASE