Reasons why banks lowered their rates on credit cards

With a usury rate that is at 46.26% and the cost of a large part of the credit cards close to that figure, the reduction in interest that the bancolombito decreed for about 50% of its plastics this Friday generated a domino effect in the banking market.

At the close of this edition, seven more banks announced a drop in their rates, in most cases for credit cards with limits of up to $4 million.

(Scotiabank reduces its interest rates to 20% effective per year).

The first to announce interest rate cuts was Daviviendawho said that taking into account that the most relevant purchases such as food, transportation, health, education, clothing, footwear and agricultural inputs are among those most affected by inflation, adopted the measure.

He announced that in order to “relieve the pocket of more than 40% of customers who have a credit card and seek to improve their flow of money on a day-to-day basis, La Casita Roja lowers interest rates on the aforementioned purchases made with a credit card classic passing rates from 46% to 20%”.

(The banks that lower interest and the clients to whom it applies).

Purchases made since March 11 will see this benefit reflected on your next statement. “We believe that prosperity in Colombia is built together. For this reason, the announcement seeks to support Colombian families in the responsible management of their money, improving their financial well-being and agricultural producers so that they continue to be a source of food within everyone’s reach.”, said Javier Suárez, president of Davivienda.

Subsequently, Banco de Bogotá, of Grupo Aval, added to the reductions in the interest of the cards and announced that the measure covers all its credit plastics, regardless of the quota or the purchase.

(BBVA Colombia and Banco Agrario lower rates on credit cards).

“Banco de Bogotá has supported Colombians, for more than 150 years, in all situations through which the country has gone through. Today we are not oblivious to the current inflationary context, and we ratify our commitment to households through the reduction in credit card interest rates, in order to promote and facilitate access to essential goods and services. We will continue working on strengthening our portfolio to respond to the needs of Colombians and be their ally at all times.”, affirmed Alejandro Figueroa Jaramillo, president of Banco de Bogotá.

As of Monday, March 13, Banco de Bogotá credit cards will have a special rate for purchases in the most relevant categories of household consumption. The special rate for this type of purchase will be 1.53% monthly nominal, which is equivalent to 20% effective per year, and represents a reduction of less than half of the current rate and applies to all credit card quotas.

(Davivienda lowers interest rates to 20% on credit cards).

Then the turn fell to Banco de Occidente, a subsidiary of Grupo Aval, which as of March 15 will reduce by 57% the rates for food and supermarket purchases made by all its customers, with any credit card, to Except for co-branding. With this measure, the interest rate for these categories will be 1.53% MV, that is, 20% EA

Cesar Prado, President of Western Banksaid “part of our organizational purpose is focused on making the development of people a reality. We materialize this today with the decision to reduce rates in these categories, understanding that the measure benefits many Colombian households and alleviates people’s cash flow”.

He agrarian Bank announced a rate decrease on your credit card Agro-inputs at 24.76% and no handling fee.

He Pichincha Bank it also lowered the interest rate for all credit cards to 20% EA.

Scotiabank Colpatria He said that he will lower the rate to 20% EA on credit cards for purchases in supermarkets, fuel at service stations and restaurants. The adjustment is equivalent to a drop of more than 50% of the interest on private, basic and classic cards and will apply as of March 14.

Findeter will reduce interest on your direct and rediscount credits. The reduction is 100 basis points for rates indexed to the IBR and 125 basis points for those tied to the CPI.

(Banco de Bogotá and Banco de Occidente also lower interest rates).

The president of Asobancaria, Jonathan Malagónsupported the call of President Gustavo Petro to lower rates for users.

“This is President Gustavo Petro. Despite the increase in liquidity and the high monetary policy rates, banks reduce rates for their users and from Asobancaria we subscribe to the government goals in terms of financing the popular economy”, Malagón pointed out on his Twitter account.

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