USEFUL GUIDE : IF YOU'RE A NEWBIE AND INTERESTED TO PROCESS THE CREDIT CARD IN MEXICO
Learning how to correctly use a credit card can help you manage your financial resources better. Such kinds of cards are commonly used in Mexico, 1 in 3 citizens has at least one but if you don't know how it works, it can give you a lot of headaches.
Credit cards in Mexico are characterized by giving you great advantages when making your transactions, such as being able to do so without the need for cash and being able to defer them to months without interest at times. In this way it seeks to satisfy the needs of the user, without needing to capitalize when using it.
Both classic and platinum / gold credit cards are designed with the same purpose but each has features that make them somewhat different from each other and for specific users. In this article we will discuss their importance, opening up causes, interest rates and commissions. We hope you will find that helpful.
A credit card is a service provided through a plastic that loans you money with the only condition that it is payable within a certain period of time. If the loan is not taken out after the deadline, interest will have to be paid. Since the bank lends money, the borrower has the obligation to return the total amount arranged within the prescribed time limit.
This type of cards in Mexico, regardless of whether it is classic q platinum / gold, gives you the ability to fund yourself for up to 45 days, depending on the card and the bank providing the service. Keep in mind that when they are used they all charge interest and fees, and the amounts differ between banks.
When applying for a credit card, the considerations you need to weigh are: total annual expenses, cash requirements, fees and consumption habits. When you analyze those parameters critically, finding the right one for your needs will be much simpler.
Our recommendations: the 3 best credit cards
Today, 1 in 3 people have a credit card, so if you are one of those two people who have no desire or need a credit card, then this article is certainly for you. You need to first compare and evaluate what each one gives you, so we'll show you below those who offer the best benefits to those who use them.
The cheapest Mexico credit card on the market:
The Simple Banorte credit card is considered to be the cheapest card on the Mexican market, as it charges just 28.1 percent CAT-wise. It offers benefits such as prior assistance and, in addition to being available for use in virtually any establishment during any journey, in some it even offers months of no interest.
As for fees, it only has an annuity of 120 MXN and includes a proof of 3,000 MXN of sales. Only that their limitation lies in the low credit amounts allowed for this kind of card.
Mexico's High-Income Credit Card:
It is one of the most competitive for high-income consumers in the Mexican market, its CAT is 46.7%. This offers benefits like 18 percentage points on all your transactions and support for all forms of trips. It also gives exclusive presales at important events in which the bank is taking part.
It has certain fees that you need to consider, such as an annuity of 2,314 MXN, a cash draw fee, and requires you to check revenue for a minimum of 50,000 MXN, obtaining a fairly large credit maximum.
Mexico's Medical Insurance Credit Card:
Credit card issued by bank Inbursa has a 26.2% CAT. It's one of the latest marketable cards. Its most significant benefit is the availability of professional health liability insurance , medical cost discounts in Inbursa insurance.
On the other hand, it has an annuity of 200 MXN, has a cash handling or disposition fee and requires a proof of income of at least 35,000 MXN. In addition to being accepted in a wide number of establishments it offers attractive credit amounts for cardholders.
Knowing the financial instrument:
Because we understand the service banks offer through these types of cards, you can find it much easier to use them without having to pay too much interest money. For this reason, we are going to delve further into such a used product in this section and we suggest that you pay attention to every detail.
What is a credit card and what is it for?
If you need to make purchases regularly because of the complexity of your jobs, but, your income is one or two times a month, a credit card is perfect for you. It is the most requested commodity for banks and aims to be able to indebte the cardholder with sums he can easily pay in the short term.
This kind of revolving credits, that is, once the balance has been charged, the credit will once again be fully available to you, they will provide you with a short-term available amount to be paid on the next cut-off date. It is 45 days in Mexico whereas it is between 35 and 40 days in other countries.
For eg, if your court date is June 2, you've also got a payment date that will be 22 of the same month for this example. If you make a purchase on June 5 you will have to settle the order until July 22.
Classic or Platinum or Gold Credit Card - What to Pay Attention to?
It is necessary to ask yourself this question for this type of financial product, bearing in mind that there is a great variety of them and that they are governed by different banks, each with its own characteristics. Therefore we describe the most used in Mexico in detail below.
Classic credit card.
It's the simplest and most basic product within that group. In general, in Mexico the allowed amount of credit is between MXN 5,000 and MXN 10,000.
It's centered for those who first request it, generally they 're young people who start their working life and don't have a credit history. There are two types of cards in Mexico, those that do not charge an annuity if used at least once a month and those that charge an annuity of about 500 MXN
Platinum or gold credit card.
As for this coin, it is 40,000 MXN or higher for those with an outstanding salary, usually in Mexico. We also have to have an impeccable credit history, that is, they have never had any kind of arrears in their payments, much less partial or total default on a loan.
The credit card is targeted towards adults with a strong work history. As for their advantages, they have support abroad and during your travels in Mexico. However, on average they charge an annuity of 1,500 MXN.
What is CAT on a credit card?
The CAT is the total annual cost, it is a controlled metric in general terms and it is the expense that a bank charges you as a percentage for using your expressed card. Of knowledge and comparison purposes, all the costs and expenses generated by a credit card are complete, and this is generated when a payment is in default.
In other words, this expense is a portion of your credit card's interest rate, fees and benefits. As a payment is due or there is a delay, this total annual cost increases because of the risk that the fee will not be charged.
A classic card's CAT in Mexico is 67.2 percent while it is 21 percent in Colombia, not more than 15 percent in the USA and Canada. The above is based on the financial instability that Mexico is going through, the peso's volatility, besides the fact that the probability of payment default is extremely high compared to other countries.
A very simple example to better understand this expense is that you are paid 672 MXN in Mexico, 210 MXN in Colombia and around 150 MXN in the USA and Canada for every 1,000 MXN when you use your credit card and you do not pay on time. The calculation is simple: the the the percentage in the CAT, the more expensive the card will be.
How does a credit card work?
It is a fairly simple process. It starts when you make any kind of transaction, either at a physical establishment or in an online store, and ends when you pay for that purchase you made directly to the bank. You will remember this:
It's a loan.
Each time you use your credit card, the one who actually pays the business is the bank; that is, the bank lends you the money, so you're going to be obligated to pay off the loan.
You have a payment date.
All cards have a payment date and an expiration date. The first is used to assess the start and end of a period which usually is one month. Whereas the second specifies the day the transactions made are to be paid. To stop being paid excessive interest and fees you can memorize your payment date.
There are 3 forms of payment.
You can make your payments electronically, through the bank app or directly at the branch to pay off your debt. You need a username and password for the first two, which you need to process at any branch of your choice bank, and for the last one, you only need your card number to make the payment.
How to process a credit card?
In Mexico, in addition to being the most convenient payment method for many, the issue of having, but above all, using a credit card is becoming more popular everyday. You can do it in two ways, to process one:
It's the most convenient and the least time-consuming way, as you can do it anywhere, so you don't have to be in a bank to inquire. This way, they will ask you to focus on one request for all of your information. As far as your data is concerned, they will ask for your full name, date of birth , address, RFC, CURP, data about your current job, seniority in it and your salary, two personal references, among others.
By this means, you will be attended by a consultant who will give you personal attention, in this case, you will be the one to fill in all the above detail. The advisor will later capture your request into the program.
In both cases, the bank must test you to determine whether you are a candidate to award you a credit card. We verify the authenticity of your submission, as well as of your work, within this study. The most important thing is to check your credit office, i.e. your payment actions on accounts or cards you have or have.
If approved, the branch of your preference will allow you to pick up your new card, displaying a valid personal identification. There they'll explain your card's service carefully, as well as the important dates we explained earlier.
Do you need a minimum income to obtain a credit card?
Answer is yes. Currently for this service a minimum income is expected among prospects. Banking institutions segment their market in three ways and, through this financial product, offer credit lines based on that.
Profit that is less than MXN 15,000. This form of revenue is the one most earned by banks, for which they offer a 5,000 MXN credit line. Additional for review of all of the above mentioned information.
Profit ranging from MXN 15,000 to MXN 30,000. The ability to pay the profit allows for wider credit lines. These range from 5,000 MXN to 40,000 MXN. When you make healthy use of your card, your credit line can increase.
Larger than MXN 30.000. They are the ones who use the credit card more often for this form of revenue and the ones with the best records in their credit office. And credit lines will grow to MXN 250,000.
It's worth noting that the higher the salary, the greater the credit on your new card. For example , the minimum amount issued by banks in Mexico is MXN 5,000, which verifies a minimum income between MXN 10,000 and MXN 15,000. That function extends even to those who ask for their first card.
All of your wages can be checked by payroll receipts or statements. Both banks in Mexico are demanding the last 3 months of that revenue. Finally , consider that your credit line, once your card has been approved as you use it and comply with your payments in a timely manner.
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