Many banks increase credit card interest rates up to 22%/year

Vietcombank, VietinBank and BIDV simultaneously increased credit card interest rates up to 22%/year, many other banks also increased credit card interest rates

Credit card interest rates enter new cycle of increase

From November 20, Vietcombank began adjusting the interest rates for international credit cards for both individual customers and SMEs. This is the first increase of the year and takes place in the context of the consumer market entering the peak period at the end of the year, causing the cost of capital of banks to tend to increase accordingly.

According to the announcement, Vietcombank's standard credit card interest rate increased from 18%/year to 22%/year. Gold card increased from 17% to 21%/year.

Platinum/World lines increase from 15% to 19.5%/year, while Signature and Infinite increase from 15% to 18%/year.

The Platinum Card for SMEs also increased to 19.5%/year.

Despite the increase in interest rates, Vietcombank's annual fees remain unchanged for each segment. The premium Visa Infinite card group has a maximum annual fee of VND30 million/year and is completely waived for customers in the Priority Diamond Elite category.

Signature cards cost VND3 million/year and are also waived for the Priority segment.

Mid-range cards like Visa Platinum or Mastercard World maintain a main fee of VND800,000/year.

Many other banks also increased credit card interest rates.

Not only Vietcombank, VietinBank has applied new interest rates from November 10.

Some international credit card categories of this bank increased from 18.5%/year to 22%/year, bringing the interest rate level close to the highest level in many years.

BIDV also announced adjustments from November 21. Standard cards increased from 18% to 22%/year.

The Platinum, World and Ultimate lines are adjusted to 20%/year, while the Signature and Infinite lines increase to 18%/year. The BIDV Visa Easy card has a smaller increase, from 11.5% to 12%/year.

Pressure on capital costs and peak consumption season are the main causes.

The simultaneous adjustment of interest rates by banks reflects two important factors. First, the cost of capital mobilization is on the rise again as credit demand and consumer spending demand increase sharply in the final period of the year.

Second, non-cash payment activities, especially via credit cards, are growing rapidly, forcing banks to adjust profit margins to compensate for risks and operating costs.

This development shows that credit card interest rates in Vietnam will likely remain high in the coming time, in line with the peak season consumption cycle.

In the context of rising interest rates, credit card users need to control spending reasonably, monitor statement periods and avoid overdue debt.

Although premium cards have many incentives, the new interest rate will significantly increase financial costs if there is a debt balance.

Categorizing your needs and using 0% interest when there is a suitable program will help reduce costs.

Source: https://baodanang.vn/nhieu-ngan-hang-tang-lai-suat-the-tin-dung-len-toi-22-nam-3310035.html