The answer to this question is simple: before deciding, quote and compare between the different credit card issuing institutions paying special attention to the Total Cost of Credit (CTC). This is recommended by the latest Sernac study, on cash advances and installment purchases with credit cards, which showed differences, in some cases, of more than 100% in the Total Cost of Credit.
The total cost of the credit includes interest
Taxes and commissions in general. But not only that. In addition to the specific fees charged for cash advances or installment purchases, there are other expenses associated with credit cards, such as maintenance expenses, which must also be taken into account.
Now with regard to what is more convenient, request a cash advance or make purchases in installments with your credit card for the dreaded March, the Sernac ensures that “in general it is cheaper to make a purchase in installments with a card than a cash advance . ”Let’s see why?
Differences in cash advances
114% difference in cash advances. For the comparison on card advances, SERNAC detected that the most expensive entity was Hites, with which you can end up paying a CTC of $ 454,590 for requesting a advance of $ 200,000 in 12 installments, that is, $ 242,544 extra.
Meanwhile, the cheapest card when requesting an advance in 12 installments for $ 200,000 was Capital Lender Bank’s Visa Dorada credit card, with a total cost of credit (CTC) $ 212,046. Just $ 12,046 extra. 92% difference in advances with retail cards. According to the SERNAC study, when requesting an advance of $ 200,000 in 12 installments with the CMR Falabella card (traditional / Visa / MasterCard) you could pay a CTC of $ 236,571.
Which represents the cheapest card in retail
Meanwhile, the most expensive card was Hites again, which reaches $ 454,590. That is, a difference of $ 218,019 extra.
76% difference in advances with bank cards. In the case of banking, the comparison detected that for $ 200,000 requested with the cheapest card in the business, the Golden Visa of Capital Lender Bank, $ 212,046 is paid, that is, $ 12,046. As the least convenient card in banking, it is the Master One from Cream Bank, which can represent a CTC of up to $ 372,954, which represents a difference of $ 160,908, 76% more than the lowest value.
Differences in installment purchases
Difference 77% in purchases with bank cards Now in the case of purchases in 12 installments in the amount of $ 200 thousand, a consumer could pay up to $ 160,103 extra when comparing the CTC of $ 208,022 of Capital Lender Bank (Visa Gold card) with that of Cream Bank (Mastercard One) that reaches $ 368,125.
Difference of 51% in retail cards. On retail related credit cards, adding tax, commissions and interest, the lowest total cost to pay is $ 232,166 CMR Falabella (Traditional / Visa / Mastercard) up to $ 350,861 with Hites card, with a difference of $ 118,695.