Mexico: High Credit Card Rates Exceed Inflation by 12 Times

Edited by: Elena Weismann

Mexican commercial banks, particularly BBVA, control over 60% of the market, fostering abusive practices. Credit card interest rates for high-income clients reach 51.9%, exceeding March's inflation rate of 4.12% by approximately 12 times.

The average annual total cost (CAT) is 75.1%, significantly higher than the central bank's interest rate. Personal loan interest rates range from 30% to 65% annually, depending on the bank and client profile.

Experts suggest strengthening competition by including Fintech companies, strict regulation to limit intermediation margins, and financial education to empower users.

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