‘Card Loan’ interest rates likely to rise as household debt tightens

As the financial authorities decided to apply the Total Debt Principal Repayment Ratio (DSR) to card loans from January next year to strengthen household debt management, the possibility of an increase in card loan interest rates has increased. In addition, if you want to increase the credit card limit, the procedure is expected to become more complicated than now, such as having to submit data that can prove your income or repayment ability.

According to the credit finance industry on the 14th, if DSR is applied to card loans from January next year, the amount of card loans will be reduced by 20-30%, and the interest rate of card bonds will rise, and thus the interest rate will have to be raised. The financial authorities are known to have asked card companies to submit suggestions regarding the application of DSR to card loans. A credit card company official said, “If DSR is applied to card loans in January next year, the amount handled per card company will decrease by 100 billion won.

As of the end of September this year, the average interest rate on credit card loans by credit card companies according to the standard grade standard was 15.43% for Lotte Card, 12.93% for Samsung Card, 11.46% for Shinhan Card, 12.85% for Woori Card, 12.6% for Hana Card, 13.39% for Hyundai Card, and 13.39% for KB Kookmin Card. Card 13.5%, etc.

The application process as well as the interest rate for the card loan becomes stricter. Currently, credit card companies set the limit on credit card loans in consideration of the member’s recognized income. However, if individual DSR is applied from next year, credit card loan loans may come out less than expected. Another credit card company official said, “Originally, credit card loans were popular because of the simple structure of lending them according to their recognized income, but the situation will change from next year. If the loan does not come out as much as you need, you need to find a suitable financial company and apply for it,” he said.

Reference-www.khan.co.kr

Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *