Your credit card charges you 5 times more than it should: the truth

Do you feel like your credit card is stifling you? It's not your imagination. An analysis reveals that banks in Mexico charge average interest rates of 51.9%, five times higher than the reference rate. We show you who's who in this business.

Millions of Mexicans use their credit cards as an essential financial tool, but few are aware of the true cost they are paying. An analysis of financial sector data reveals a shocking reality: Mexico's major banks charge an average interest rate of 51.9% on their "gold" credit cards, a level that is 5.7 times higher than the reference rate set by the Bank of Mexico ( Banxico ) and up to 13 times higher than the inflation rate.

This huge discrepancy highlights the high cost of consumer financing in the country and exposes a market practice that directly affects cardholders' pockets. While the central bank adjusts its interest rate to guide the economy, commercial banks maintain their interest rates at considerably high levels, generating substantial profits at the expense of their customers' debt.

To understand the full picture, it's crucial not just to look at the average, but to compare the Total Annual Cost ( TAC ) of specific products. The ACR is the most accurate indicator, as it includes not only the interest rate but also commissions and other fees. Below is a comparison table based on market data for 2025.

• Classical
  • Banorte: 155.3% (More Expensive)
  • Banamex: 144.7% (More Expensive)
  • Banorte Fácil: 18.1% (Cheaper)
  • Vexi American Express: 95.6% (Intermediate)
• Gold
  • Banco Azteca Oro: High (Not specified) (More expensive)
  • Santander Samsung Members: High (Not specified) (More Expensive)
  • Invex Despegar Gold: Low (Not specified) (Cheaper)
  • Banregio Banregio Card: Low (Not specified) (Cheaper)

Note: APR data are averages and may vary depending on each user's credit history and payment behavior. The table is a representation based on information available from public sources and financial comparators as of mid-2025.

The obvious question arises: if the Bank of Mexico lowers its monetary policy rate, why isn't this benefit passed on immediately and proportionally to consumers? Industry analysts point out that there is a systematic "delay" on the part of commercial banks in lowering their rates.

This phenomenon is due to a combination of factors. On the one hand, market inertia and the complexity of financial products make it difficult for consumers to compare and switch providers easily. Banks benefit from this lack of mobility, maintaining high profit margins. The credit card business model, in fact, is maximized when customers don't pay off their balance in full and fall into a cycle of paying interest on interest, a situation exacerbated by high interest rates.

On the other hand, it is argued that sometimes regulatory or public "pressure" is necessary for financial institutions to make adjustments. In the absence of this pressure, the tendency is to keep rates high as long as possible, even in an environment of falling reference rates.

"Only 44% of cardholders in Mexico are 'totaleros,' meaning they pay off their entire debt each month. The rest finance the high cost of credit, paying interest that far exceeds any reasonable standard."

Taking control of your finances and minimizing interest payments is possible. You don't need to be a financial expert, just adopt disciplined habits. Here are three key strategies:

• Become a "totaler": This is the golden rule. The only way to completely avoid paying interest is to pay off your card balance 100% before the payment deadline. Treat your credit card as a means of payment, not an extension of your income. If you can't pay the full amount, always pay more than the minimum to reduce the principal faster.
• Consolidate Your Debt: If you have debt on a card with a very high APR, explore options to transfer that balance to another card or a personal loan with a significantly lower interest rate. Several banks and fintechs offer debt consolidation products that can drastically reduce your financing costs.
• Negotiate or Change Your Card: Call your bank and request a reevaluation of your interest rate, especially if you have a good payment history. Argue that you have offers from other institutions with better terms. If they refuse, don't hesitate to cancel your card and switch to one of the cheaper options identified on the market, such as those shown in the comparison table.

Knowledge is power. Understanding the true cost of your credit card debt is the first step toward making smarter financial decisions and stopping feeding a system that profits from consumer debt.