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Santo Domingo.- In the first nine months of 2011 the Dominican financial intermediary companies issued 201,485 new credit cards, bringing the total in the country to around two million.
This represents an increase of 11% compared to the 1.8 million credit cards in December 2010, according to figures released by the Dominican Republic Commercial Banking Association (ABA).
The ABA says that these results prove that the banks have maintained their policy of converting citizens who had been excluded from the formal financial market into credit subjects.
“These new cards have given the facility to clients who are not forced to carry cash, contributing to their personal security and eliminating the risk of robbery”, said the ABA.
In 2010 credit card spending totalled over RD$95.58 billion, equivalent to 5.74% of national private consumption, according to Central Bank statistics.
It is worth highlighting that national credit card consumption rose from over RD$77.8 billion in 2009 to over RD$95.58 billion in 2010, “which demonstrates the public’s interest in using credit cards as a payment tool”.
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"who had been excluded from the formal financial market into credit subjects."
Boy if that doesn't say it all in a Monarchist Freudian way!
The banks are giving people "who had been excluded from the formal financial market" out of their civil duty and the kindness of their hearts, not for the obscene interests rates they charge.
I wonder what proportion of those cards were issued to public officials.
He bought the Rolex's in bulk and passed on some of the saving.
8% of the balance per month! Not per year...per month!!!!
I think I will risk carrying cash....if it is not the thief I can see...it is the one I cannot!
BTW...they seem to have all the numbers and figures...how about proudly mentioning the interest rate charged and how it is calculated. Now there would be some useful and eye opening (instead of wallet opening) information!
Get an account with a bank that automatically transfers what is owing on your credit-card from your savings account, at the end of the month before interest is due. Then you don't need to think about it, and never end up paying interest.
If you don't have enough in your savings account to cover it, then you are spending beyond your means. Then you should be using a debit-card instead.
Or Mike you could listen to this:
http://www.youtube.com/watch?v=iwDDswGsJ60
2 million represents the 20% who are upper class in this country...nothing new here. My card is just a second card on my wife,s account. Have to wonder how many others are as well.
Sometimes account-holders are taken with their card to an ATM then beaten till they give the PIN number, then disposed of when the account has been drained. Hence in some countries (eg. Brazil) have a much lower limit for withdrawals after 10:00 PM.
Also credit-card fraud is common. I suggest anyone traveling to the Dominican Republic, memorize the 3-didgit supplementary number on the back of the card, then scrape it off.
These cards waive interest for a year or longer. Those without debt can get rewards cards that provide rebates of up to 5% on purchases (for example, see http://www.smartbalancetransfers.....edit-card-rewards-offer-rankings/
I'm curious as to how different credit offerings are between our two countries.
Credit cards are not used here as much as USA or Australia. I use my Australian cards here so I don't know much about local cards, however I suspect they are very primitive and not very competitive. The rates they offer on deposit stock etc, is very poor, considering the exorbitant rates they charge on loans. They also slug you at ATMs.