2023-07-12 20:31:00
By Mario Mendoza Rojas / @SoyMrMoney July 12, 2023 at 09:00 a.m.
Credit cards are not a “thing of the Devil” or an “evil entity” that puts you into debt, on the contrary, they represent an opportunity to bring your future fortnights to the present and, with it, buy a product or contract a service that today you need.
The secret, to get the most out of it, is to know which is the ideal or most convenient plastic for your economy, the one that covers your consumption needs and, most importantly, the one that charges you less interest and commissions for financial services what do you require
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All of the above, of course, without forgetting that credit cards are not an extension of your salary or income; that the healthiest thing is to buy only what you can afford and try to be total: cover the entire monthly payment; and if there is no other option, settle -always- a higher amount famous minimum payment.
How many credit cards are there in Mexico?
The Bank of Mexico (Banxico) reported that there are more than 100 different credit cards in the market, which are granted by banks and financial institutions that operate in the country.
The National Banking and Securities Commission (CNBV) reported that, at the end of December 2022, there were 31.6 million valid cards, used regularly, throughout the Mexican Republic.
While the National Survey of Financial Inclusion (ENIF) 2021, showed that 25.5 million adults have a departmental, self-service or bank credit card; number that is lower than those in circulation, because there are people who handle two or more plastics.
“For every 10,000 inhabitants, the states that top the list with the most credit cards are: CDMX, Nuevo León and Baja California Sur. Those that are at the end of the list are Guerrero, Oaxaca and Chiapas”.
— Citibanamex
How many types of credit cards are there?
The director of Financial Education at Citibanamex, Juan Luis Ordaz, explained that a quick and easy way to know the answer is through the classification published by Banxico:
Basic Cards: without an annuity amount, its main purpose is the acquisition of goods and services. This type of card allows you to make purchases for months without interest. Classic Cards: average annuity of 474 pesos and an average credit limit of 37,212 pesos. It offers basic benefits such as cashback and access to event pre-sales. Gold Cards: average annuity of 705 pesos and an average credit limit of 65,412. This type of card usually offers additional rewards programs and more robust insurance coverage. Platinum Cards : average annuity of two thousand 792 pesos and an average credit limit of 198 thousand 983 pesos. It offers premium services, such as tickets to VIP lounges at airports and concierge services: restaurant reservations, buying tickets for events, preparing vacations, arranging business activities and locating hard-to-find items.
Tips for choosing a credit card
To choose the ideal credit card that meets your consumption and payment needs, Citibanamex’s Director of Financial Education recommends:
Take into account your income and consider your debt capacity: 30% of your income after subtracting your fixed expenses. Remember that a credit card is not an extra income, it is a revolving credit product that allows you to finance yourself for up to 50 days. Be sure to consider the terms and conditions of the plastic you are going to purchase. Review the amount of annuity and, above all, the Total Annual Cost (CAT); the latter helps you calculate the total cost of financing a loan: interest rate, annuity, insurance and commissions. Hire a card that allows you to take advantage of all the benefits it offers: months without interest, preferential rates, points programs , miles on plane tickets and pre-sales, among others; If you don’t, you’ll be paying for something you don’t use. Once you’ve acquired your credit card, keep in mind two extremely important dates: cut-off date and payment date. The cutoff is the date on which the bank marks the end of a period of your credit cycle; usually you will have 20 days to pay. Your payment date is the deadline you have to cover your debt, either partially or totally. Consider being total and forget about paying interest. By covering the total amount of your debt, before your payment date, you will be financing yourself almost free of charge for up to 50 days. If you cannot cover the total amount of your debt, pay more than the minimum, otherwise you will incur default interest, which can go up to 120% annually. Check your account statement monthly. Whether printed or digital, this document will help you to know your balances and movements made during the current and previous periods. Lean on your bank’s app to keep better control of your income and expenses.
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