BC says credit card interest rate rose, but overdraft rate fell

According to the Central Bank, the interest rate revolving credit card average is higher when compared to December. This is because last month it was 318.3%, but now in January it is 318.9%. If the whole year is analyzed, a growth of 33.5 percentage points can be seen. This is because, in 2018, this rate was 285.4%.

On the other hand, overdraft interest rates are lower. The average fee charged last month was 306.6%. Now in January, it is 302.5%. When we investigate the whole year, we can see a drop of 10.1 percentage points. This is because, in the year before last, interest on the overdraft was 312.6%. Do you want to know more about the data released by the Central Bank? Then keep reading our article!

More details about the overdraft interest rate

Still according to the Central Bank, the annual interest rate on the overdraft will be around 150%. This percentage was calculated based on the interest limit of 8% established by the municipality on January 6th for this type of credit.

There was no other moment when the Central Bank took the decision to put a cap on the rate of a credit line with free resources. In case you didn't know, the interest rates on this type of credit operation are freely agreed upon and not mandated by law.

What about other lines of credit?

To the delight of Brazilians, rates on other lines of credit also dropped. Payroll loan interest was 20.6% in December last year. It now stands at 20.2%, reaching an all-time low. In addition to them, the average interest rate for the purchase of vehicles by individuals also decreased. If last month it was 19.3%, now it has reached 19.2%.

Final considerations

That said, we News Report we hope you understood the decrease in interest rate overdraft and the increase in credit card interest. Tell us what you think of these changes and whether they will help or hurt you in any way. Also, be sure to follow our website to read more articles related to the economy of the country and the world!

Source: G1