“It depends a lot on the risk of the type of credit: the higher the risk in the type of credit, the interest rate will be higher. The lower the risk, in the type of credit, it is lower and when I refer to risk, it is that it can fall into non-performing loans ”, said Ramón Martínez Juárez, professor at the Commercial Banking School (EBC).
What happens to those people who contracted a loan before 2021 when Banxico began to raise the reference rate? There is good and possible bad news. The first is that those who have a car or mortgage loan will not suffer the increase in the rate because this type of credit is fixed. But if they fall behind in their payments, the default rate will rise as the monetary policy instrument rises.
“The default interest rate is an additional rate that you are charged for being late, that is, you are going to pay the interest (on the credit) plus the default interest rate for being late,” explained Martínez. The expert advised reviewing the contracts to confirm whether the delinquency rate is variable or fixed.
In the case of credit cards, Martínez warned that plastics with three-digit interest rates are already beginning to be reflected, that is, greater than 100% per year.
What if I want a loan this year?
The first thing you have to check is if it is linked to the TIIE (Equilibrium Interbank Interest Rate). This rate is used as a reference for credits such as cards and follows the behavior of Banxico’s reference rate.
So, you should check if the interest they charge you is TIIE plus a certain additional percentage without forgetting the default rate.
For those SMEs or entrepreneurs who wish to request a loan, they must take into account that the increase will affect them, according to Gabriela Aguirre, Chief Financial Coach at Coru.
“The recommendation would be to try to settle these debts as soon as possible or change them at a fixed rate,” said the specialist, who warned that entrepreneurs are the ones who should be most careful about falling into arrears, since that bad behavior will limit them in the future. future.
“A person who is leveraged for his company or in his daily life, it is not convenient for him to have that “spot” (of poor payer) in the credit bureau; it can affect you in the future and it will last for at least seven years. “.
Tips for your portfolio in times of high interest rates
If you want a credit card, the advice of the experts is not to be afraid of it, since it is a good financial instrument, although you should try to pay your debt in full before the payment deadline.
Whatever the credit you are going to request, compare between more than three financial institutions, to find out which one suits you.
Avoid paying the minimum amount. Not only are you going to increase your debt, but you are going to create a bad mark on your credit history. Remember that banks and financial institutions lend more and with better conditions to people with a good track record.