The almost 45 million credit cards that circulate in Spain have been more active than ever this 2016. The outstanding balance of the operations with deferred payment credit card reached 10,255 million USD at the end of June , a 17, 4% more than during the same period of 2015.
This is the third consecutive month that the outstanding balance of this type of credit operations exceeds the 10 thousand and fourth month barrier in 2016. A figure that had never been exceeded , at least since June 2010, the date from which the Bank of Spain has made the data public.
How much does it cost to defer payment for a purchase?
The debt contracted in June by Spanish households in “plastic” support was paid, on average, to a nominal 21.10% . Thus, those who in June financed, for example, a purchase of 1,000 USD a year, will end up paying 117.94 USD in interest.
From the comparator specialized in cards they indicate that if a purchase is going to be financed, the ideal is to do it with a “plastic” that has an interest as low as possible and that the term is short. According to the comparator ranking , you can currently find cards with interest rates from 9%. It is the TIN that has the Good Lender , the first on the list, exempt from issuance and maintenance fees. With it, the same purchase of 1,000 USD divided into 12 installments would accrue 49.42 USD in interest, almost 70 USD less than paying the purchase at 21.10%.
Good Finance, second in the ‘ranking’
The 1 | 2 | 3 World Card associated with the popular Good Finance Account 1 | 2 | 3 has a 12% interest rate for deferred purchases, well below the average. In this case, the interest on the purchase would be 66.19 USD. The card is free the first year.
It is followed by the GFI Direct credit card with an interest of 14.06% for purchases of more than 90 USD paid in 3, 6, 12 or 18 months. For the rest of the options and terms the interest is triggered up to 20.05% TIN. In this case, if the purchase is paid to one year the interest would amount to 77.78 USD. In GFI Direct, customers do not pay commissions for their cards, which makes them attractive.
Other “plastics” with interest below 21.10% on average are the GFI credit card at 12% (issuance and renewal fee of 28 USD), the Good Lender Card at 19.21% TIN (free ) and the 19.21% Good Finance MasterCard which also returns 1% of all deferred purchases (free).
More plastic money than cash
During the first quarter of the year the amount of card transactions in Spanish dataphones was 27,816.74 million USD, while the total withdrawn at ATMs during the same months of the year remained at 26,603.07 million. It seems that Spaniards begin to prefer plastic money instead of cash.
The number of credit cards in circulation between January and March increased by 4.15% year-on-year and that of debit cards increased by 3.42%. In total, more than 70 million plastics at the service of the Spanish.