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How do credit cards work in Colombia?


It is almost understandable that we all have ever tried to purchase or have purchased a credit card and the purpose of this acquisition, has been to use this financial instrument as a tool for obtaining various benefits such as; have a flexibility in the payments of the goods or services we have purchased, have easy and immediate access to cash or maybe to acquire a credit life and that this allows us to demonstrate to the financial sector that in the future; More extensive credit studies can be carried out for the purchase of higher-value goods or services to meet some of our needs in a demanding market for consumer goods or services.


What should we be clear about when acquiring a Credit Card?


Having a credit card means having financial responsibilities and knowing these credit commitments will give you a clearer and more responsible view of the type of management you will have to give to these financial instruments.


Handling Fee


This is a charge that is made on a monthly or quarterly basis by banks, this value differs depending on the financial institution and the type of credit card membership you have purchased. If you want to know more details of this charge you can see it on the website of the financial superintendence www.superfinanciera.gov.co there you can find the main costs that the credit institutions collect in the T.C. for this concept.


Cash advance:


It is understandable that banks make a charge for this transaction, depending on the channel through which the financial movement is managed, some channels that we can find are cashiers, office, internet channels or other mobile applications that the bank has made available to you. The advance in cash the bank automatically differs it to a year or more periods and generally the interest rates for these tractions are higher than the other transactions.


Bank Fees


We can identify them as those items that financial institutions charge for making use of the variety of products or services they can offer us, we can identify these fees from a consultation of financial movements, by transfer between accounts or by withdrawing advances of money in other banks not belonging to the official entity with which we have our credit card.


Insurance – Protection


All financial products in credit aspects have a series of insurance for the peace of mind of the customer and the peace of mind of financial institutions, therefore in some cases these items must be taken over in a fixed monthly payment for insurance, although there are other insurance which is already included with the credit card and with the simple fact of using the means of credit payment, you will have access to each of the benefits that the bank has.


Advantages of having a Credit Card


1. You have benefits such as redemption of points or miles in different stores

2. You will have cash at your fingertips

3. You receive special discounts on the different trading platforms

4. You can buy memberships online and other types of applications

5. Can be used at national or international level


Disadvantages of having a Credit Card


1. If you don’t control the management of T.C. you can have economic difficulties

2. Too many financial products make your life turn around short-term debts

3. If you don’t compare the costs of financial institutions, you can even pay higher values



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Key words:

Credit card, handling fee, cash advance, Bank fees, Insurance, advantages, disadvantages LARM.



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