Visa and Mastercard credit cards announced an increase in tariffs to finance monthly consumption in installments after the Central Bank of the Argentine Republic, BCRA, decided to increase the rates of return in pesos.
From the first of October the Central Bank of the Argentine Republic, BCRA, raised term rates, and the consequence was that Visa and Mastercard credit cards decided to increase the cost of installment financing outside the official schedule Now 12.
The financing rates have gone from two to 24 installments. Meanwhile, the 12 installments have been increased to a TNA of 115%, a TEA of 193% and a CFT of 247%.
This increase is striking directly to those who cannot make ends meet and you have to apply for a personal loan or pay the minimum card, since interest increases because the cost of financing for the bank increasesbeing forced to pay more for deposits.
The 12 installments outside of Now 12, which last month had risen to a nominal annual rate (TNA) of 105%, an annual effective rate (TEA) of 168%, and a total financial cost (CFT) of 211%, they have now been increased to a TNA of 115%, a TEA of 193% and a CFT of 247%.
Hour 12which had a nominal rate of 59%, went to 64%but it is only for those cards issued by banking institutionswhich in many cases do not update the inflation limit, which is why the share they can consume is very small.
The plastic emitted from non-financial entities they have the same nominal rate of 115% as banks and the same effective rate of 193%, but the administrative costs are higherso the total financial cost, which is what, in the end, ends up getting paid, which was 268%, now it’s 320 percent.
Meanwhile, credit cards Cecosud, with which you generally have discounts on Disco, Jumbo and Vea, went from a nominal rate of 115%, an effective rate of 193% and a total financial cost of 320%, to a TNA of 125%, a TEA of 219% and a CFT of 380 per cent.