Total Annual Cost (CAT)
Do you know what your credit card CAT is?
The Total Annual Cost (CAT) of your credit card is the amount you will pay within a year for the sum of the interest rate, the cost of the annuity, the term, amount of credit and an additional percentage for some other commissions in the use and benefits of your card.
In other words, CAT is mainly used as an indicator or reference to visualize the real cost of credit card financing.
Before applying for a credit card check the average CAT and before signing the contract it is recommended:
1. Compare the benefits offered by credit cards.
2. Compare insurance.
3. Read your contract before signing it.
4. Consider commissions.
5. Consider your monthly income.
6. Consider your credit history.
7. Use tools to compare credit cards.
All credit institutions are obliged to publish the CAT, both in their advertising and in their clients’ statements. This is in order to promote transparency on the costs of financing.
Bandala | Díaz | García we are a firm that proposes and executes solutions to the legal needs of our clients.