Some banks have just informed customers about changing international credit card interest rate for individual customers.
Vietnam Technological and Commercial Joint-Stock Bank (Techcombank) announced simultaneously to raise interest rate for Techcombank Visa credit card, Vietnam Airlines Techcombank Visa standard and gold class.
Accordingly, from July 18, for the new cardholder group, this bank will raise interest rate for standard credit cards from 27.8 percent per year to 29.8 percent per year; gold card class increased from 27.8 percent per year to 28.8 percent per year.
For existing cardholders, the interest rate will increase from 26.8 percent per year to 28.8 percent per year with standard credit card; from 26.8 percent per year to 27.8 percent per year with Gold card class.
Vietnam Prosperity Joint-Stock Commercial Bank (VPBank) has also issued the Regulation on interest rate changes for VPBank credit card for individual customers.
Accordingly, for Classic Card, increasing from 3.75 percent per month to 3.99 percent per month for VPBank No.1 Mastercard; increasing from 3.19 percent per month to 3.49 percent per month for VPBank MC2 Mastercard.
For Titanium Card series, increasing from 2.79 percent per month to 2.99 percent per month for VPBank StepUp Mastercard and VPBank Titanium Cashback MasterCard.
Similarly, for Platinum Card series, increasing from 2.59 percent per month to 2.79 percent per month for VPBank Platinum MasterCard, VPBank VNA Platinum MasterCard, VPBank Cashback MasterCard, VPBank Priority Platinum MasterCard, VPBank Priority VNA Platinum MasterCard, VPBank MobiFone Platinum MasterCard.
In fact, credit cards are essentially a form of consumer lending. Currently domestic banks are mainly associated with international card organisations to issue international credit cards.
Currently, banks usually exempt interest on credit card spending for about 45 days to 55 days. Therefore, if the customer pays the full amount spent during that period, interest will not be charged. If the customer does not fully pay, the interest rate will be charged after the expiry of the interest free period, and may incur additional fees.
According to experts, to avoid being charged credit card interest rate, you need to pay part or all of the amount as soon as possible. In the interest rate calculation method based on the daily average balance, Interest is calculated on a daily basis, and depends on the outstanding balance at that day.
If you anticipate not being able to pay off the balance that month on the next month’s repayment deadline, you should not continue shopping in the following days. Because those transactions will be charged interest because you have not (or are able to) pay off the debt and you lose your interest-free benefit (within 45 days).
Normally, if you do not pay off your debt, it will take at least two months to regain interest free benefit.
