Spanish
Santo Domingo. – The Superintendent of Banks, Alejandro Fernández W., recommended this Monday that credit cards be used only as an emergency mechanism or secondary resource, and not as the main source of financing for Dominican households.
During his intervention in LA Semanal con la Prensa, Fernández explained that the credit card works as a gateway to the banking sector, but that its interest rate of nearly 60% per annum makes it an expensive instrument if used as regular financing.
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"About 55% or 60% of users do not finance themselves with it, but rather use it as a means of payment and to benefit from loyalty programs. For those who need to finance their consumption, the alternative would be a usurious credit, which can reach up to 480% annually," he pointed out. The official highlighted that, despite a decrease in access to credit in previous years, currently around 2.6 million Dominicans and companies have financing, which represents an increase of more than 600 thousand people in the last five years. Fernández insisted that, although credit cards are useful for financial inclusion, they should be used responsibly. Prioritizing other types of financing, such as consumer or mortgage loans, is more advisable to cover the regular needs of households. "The credit card is a backup or emergency resource, not the first option to finance daily consumption," he reiterated. Finally, the superintendent emphasized that the supervision of the Superintendency of Banks and the Monetary Board ensures that access to credit is safe and orderly, promoting financial education and the responsible use of these instruments.
