Inflation and the rising cost of living have led to an increase in indebtedness. The cards Spinners are one of the most popular fundraising methods.
However, it is a risky option due to its high interest rates, which currently average 21,15%, thus continuing the upward trend started in 2021, according to him Asufin VI Barometer.
Marketed by banks as credit cards with monthly payments but with very high interest rates, the price of this financial product is around a 1% (0.98%) top to that of a year ago at the end of December 2022 Annual interest from 20,17%.
This rate increased for the second consecutive year, this is contrary to the new fine imposed by Law 149/2020, of March 4, where the Supreme Federal Court sanctioned WiZink and determined that interest in excess of 20% were interests And it is that this financing system has provoked some controversial controversies, because it comes with the danger of increasing debt.
As a result of the decision, the banking institution reduced this interest rate below the rate determined by the STF in 2020.
Otherwise, you will apply excessive interest on the loan. However, the market has now pushed prices up and down by imposing higher interest rates.
It should be noted that the TS did not consider the interest rate usury from 24.5% in its resolution of May 4 and no. 376/2022.
The prices exceed the 23%, 24%, 25% and even the annual 26%. Therefore, it reiterated that its APR should be compared with the APR of similar products at the beginning of the contract to assess whether the interest rate of the card is excessively high.
The courts based their judgments on a series of price reports issued by the Bank of Spain to determine what the normal price of money would be in this case.
The problem is that the supervisor does not edit specific price quotes for pre-2010 rotary cards.
The difference between the card models increases
The difference between the Revolver card and the others has also increased due to the increase in the price of the original card.
According to Asufin, yes in 2021 these plastics were a 2,46% more expensive than conventional plastics, in 2022 the difference will increase up to 3,15%.
Also, the average turnover rate is 21,15% per year, reaching an average of 18% for all credit cards. So the difference increased by 3,15% in relation to the previous year, when the difference was 2,46%.
The same occurs with loans with terms of 1 to 5 years, the difference between 21,15% and 7,51% amounts to more than 13,64%says the report. This means that, when it comes to financing large purchases, consumer credit is almost three times cheaper.
On the other hand, the costs associated with revolving cards contribute to the increase in these cards. Thus, renewable insurance increased its price to a 10%, due to its direct impact on the APR, as well as in the form of payment: the first thing that is amortized with the payment of the deposit is the interest, then the insurance and finally, the debt contracted.
The most expensive and cheapest card.
In the ranking of the most expensive cards The first two positions are occupied by the same BBVA bank, according to Asufin: After Gold and After, with an annual return of 36,34% and 26,37% respectively, plus an issue cost of 80 and 43 euros respectively .
In third place ranking is the card CaixaBank Visa & Go, with an interest rate of 22,42% per year, since it charges a maximum rate (TIN) of 20,40%.
The fourth place is the card of Instruments of Payment and Services Spymp Receivers (formerly Evo Finance Card) with an interest rate of 20,99%.
The most expensive card for a long time, Openbank Visa Diamond Infinite Credit, now ranks fifth (20,57% APR). It offers the lowest nominal interest rate despite the low cost of issuing 55€ (9,57%).
The cheapest newspaper is the Abanca Visa project, which charges a 11,85% per year and a nominal fee of 11,25%. Therefore, the survey data shows that the difference between the most expensive and the cheapest reaches 24,49%.
As for the other entities, WiZink announced changes related to its WiZink Gold card, eliminating minimum payments that only cover interest, and the Santander Bank stopped selling revolving cards.
For its part, ING has launched a new initiative with its credit card which, although not exclusively revolving, announces the so-called "flexible payment" for purchases over 90 euro, which can be divided into 3, 6, 12 or 18 months that charges them a APR of the 15%.