{"id":159662,"date":"2025-07-31T22:29:15","date_gmt":"2025-07-31T22:29:15","guid":{"rendered":"https:\/\/teknomers.com\/en\/the-running-streak-has-ended-and-interest-rates-are-climbing-in-august-using-your-credit-card-will-become-more-expensive\/"},"modified":"2025-07-31T22:29:17","modified_gmt":"2025-07-31T22:29:17","slug":"the-running-streak-has-ended-and-interest-rates-are-climbing-in-august-using-your-credit-card-will-become-more-expensive","status":"publish","type":"post","link":"https:\/\/teknomers.com\/en\/the-running-streak-has-ended-and-interest-rates-are-climbing-in-august-using-your-credit-card-will-become-more-expensive\/","title":{"rendered":"The running streak has ended, and interest rates are climbing in August: using your credit card will become more expensive."},"content":{"rendered":"\n
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With this change, consumers are likely to notice greater costs in their fees and in the financing of large purchases – Andean credit<\/figcaption><\/div>\n

The Rising Cost of Credit in Colombia<\/h2>\n

If you often finance your \u00a0credit card purchases\u00a0, you’ll want to pay attention to the latest financial developments. In \u00a0August\u00a0, Colombia experienced an increase in banking interest rates for this modality, marking an end to a two-month trend of falling rates. The \u00a0increase of 0.39 percentage points\u00a0 has raised the USURA rate to \u00a025.17%\u00a0, according to the most recent report from the Financial Superintendence.<\/p>\n

This uptick, although not dramatic, sends a clear signal: the cost of \u00a0credit in Colombia is becoming more expensive\u00a0 amid an uncertain economic landscape. To give context, in \u00a0July\u00a0, the rate had decreased by \u00a00.77 points\u00a0, and in \u00a0June\u00a0, it fell by \u00a00.49 points\u00a0. Consequently, this month\u2019s increase breaks a positive trend that had previously benefited consumers.<\/p>\n

Understanding Usury Rates and Their Implications<\/h2>\n

Recent adjustments mean that banks can charge \u00a0higher interest rates\u00a0 on consumption loans and credit cards. The \u00a0maximum limit\u00a0, known as the \u00a0usury rate\u00a0, is set monthly by the Superintendency as a legal cap to safeguard financial system users against predatory interest practices.<\/p>\n

Furthermore, the current banking interest for consumption loans and ordinary credits stands at \u00a016.78% annual effective (EA)\u00a0, which will remain in effect from \u00a0August 1 to 30\u00a0. This \u00a0percentage plays a crucial role in the usury calculation\u00a0, being derived by adding \u00a050%\u00a0 to the existing interest rate.<\/p>\n

Impact on Different Types of Credit<\/h2>\n

The increase in interest rates extends beyond just consumption credit; \u00a0all credit modalities have risen\u00a0. For instance, urban productive credit is now at \u00a052.20%\u00a0, while popular rural productive loans, primarily utilized by small producers in remote areas, have jumped to \u00a074.33%\u00a0.<\/p>\n

Analysts attribute these shifts to a combination of \u00a0factors\u00a0. One prominently mentioned cause is the fiscal state of the country. Diego Palencia, \u00a0Vice President of Investigations\u00a0 at \u00a0Solidus Capital\u00a0, emphasized, “The fiscal hole is serious.” Presently, \u00a0uncertainty\u00a0 regarding tax reforms, issues surrounding the sustainability of public spending, and pressure on the national budget have all contributed to an anxious financial atmosphere. This situation leads to a \u00a0more cautious\u00a0 and consequently, more expensive financial system for consumers.<\/p>\n

What This Means for Consumers<\/h2>\n

As a result of these changes, consumers may soon notice \u00a0increased costs\u00a0 in their monthly payments and financing for larger purchases. Moreover, the financial system’s current trajectory suggests that there is little room for relaxation in terms of borrowing costs. The rates are likely to continue fluctuating based on various factors, including \u00a0inflation trends\u00a0, the \u00a0monetary policy\u00a0 of the Bank of the Republic, and most importantly, the \u00a0overall fiscal environment of the country\u00a0.<\/p>\n

For individuals considering borrowing, it is advisable to compare options, scrutinize conditions meticulously, and refrain from financing to the limit\u2014especially in an economic climate where access to affordable credit appears to be diminishing.<\/p>\n

News in development …<\/b><\/i><\/p>\n


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General News – 2<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

With this change, consumers are likely to notice greater costs in their fees and in the financing of large purchases – Andean credit The Rising Cost of Credit in Colombia If you often finance your \u00a0credit card purchases\u00a0, you’ll want to pay attention to the latest financial developments. In \u00a0August\u00a0, Colombia experienced an increase in […]<\/p>\n","protected":false},"author":1,"featured_media":159663,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[149,2750,4200,11353,2685,451,1539,1540,3215,6387],"class_list":["post-159662","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mazagine","tag-august","tag-card","tag-climbing","tag-credit","tag-ended","tag-expensive","tag-interest","tag-rates","tag-running","tag-streak"],"_links":{"self":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/159662","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/comments?post=159662"}],"version-history":[{"count":0,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/159662\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/media\/159663"}],"wp:attachment":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/media?parent=159662"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/categories?post=159662"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/tags?post=159662"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}