Clipping of news on Brazilian Culture, Law and Citizenship
08/17/2016
This article was translated by an automatic translation system, and was therefore not reviewed by people.
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The reasons most cited for the choice was speed in credit approval, deadline for installment and lower interest rate
For the Newsroom
Compensation: Buy with a credit card is 'less painful psychologically' than pay cash
Although the use of the store card has increased in the last year, the share of non-performing this type of credit decreased (Jupiterimages / SEE)
Amid the high interest rate scenario and tightening of credit concessions, consumers decreased credit card ownership and increased the use of shops and supermarkets cards. The percentage of consumers who used credit card fell from 42% in 2015 to 40% in 2016. Since the total wearing store card and supermarkets increased from 25% to 28% in the period, the highest level in at least ten years. The data are from a survey of the Federation of Rio de Janeiro State (Fecomércio-RJ) in partnership with Ipsos research institute.
"The use of commercial establishments card has been growing since 2012. Increased trade partnerships with financial institutions. Establishments are increasingly involved in the payment. It is the retail having to reinvent themselves to not lose market ", said the economy manager Fecomércio-RJ, Christian Travassos.
Regarding the criteria for choosing the type of credit, 30% of consumers surveyed said prioritize the speed of approval and another 30% attributed the choice to the value of the plots. The store card usually just provide instant approval credit and also allows stretch over the payment period, which ultimately decreasing installments.
"You have a considerable margin of people still on the payroll, with conditions of credit taken, and who had no access to the card shop. At this point short blanket, this is a way to turn the budget. So they resort to this type of credit, "explained Travassos.
The other reasons most cited for the choice of credit were the deadline for installment (25%) and the lowest interest rate (22%). "It is more difficult to pass a bank credit to get credit in the store. The store credit depends exclusively on the shopkeeper. He thinks: 'I will increase revenue and take more risks. " Will limit each shopkeeper far as he is able and worth taking those risks, "said economist Boa Vista SCPC (Central Service of Protection to Credit), Flávio Calife.
lower interest rates
According Calife, the store card also has the advantage of usually have lower interest rates than those charged by credit cards in the event of default, which attracts more prudent consumers.
"There is a caution in the consumer try to avoid arrangements with very high interest rates. The interest (in the store card) are lower, it is the same as delay and pay a penalty of a payment of school or English course. Until consigned credit is more expensive, "said Ahlam.
Although the use of the store card has increased in the last year, the share of non-performing this type of credit fell. According to the Boa Vista SCPC, the store card was the source of 6% of bad debt in June this year, compared with a share of 9% of total non-performing in June 2015.
Travassos, Fecomércio-RJ, remember that the main reason for consumer credit by making is still a lack of money for cash payments. "The consumer does not pay much attention to the interest as it could provide. It is the availability and the time of having to stretch the blanket, "he said.
(With Estadão Content)
Source: See
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This article was translated by an automatic translation system, and was therefore not reviewed by people.