Grace delayed: big banks massively worsen credit card terms
In recent months, several large banks have worsened the opportunities for their clients to use credit cards, Izvestiya has found out. For example, they reduced the grace period and introduced new fees. In addition, market players continue to reduce the available limits on credit cards. In conditions of high rates , banks are simply unprofitable to give borrowed funds for free for several months, experts explained. When the conditions for plastic can improve again - in the material "Izvestia".
Which banks have worsened conditions on credit cards
Banks are making their credit cards less and less favorable - at the beginning of 2025, this trend has only worsened. Recently, MTS Bank reported that from February will reduce the grace period for all transactions from 111 to 51 days on cards "MTS Cashback", follows from the official message of the organization. The changes will affect cards issued from December 5, 2021 to March 22, 2022, as well as until September 7, 2021.
In addition, Sovcombank has changed the terms of one of its main products - card "Halva": it can be used to buy goods in installments in stores - partners of the bank, but for other outlets it works as a regular credit card. Since January 12, for withdrawal or transfer of borrowed funds from customers will be charged a fee of 399 rubles, even with the options "Halva.Ten" + "All and Everywhere". This follows from the official message on the Bank's website. Previously, such transactions were subject to commissions only in users of the card without subscription.
In addition, Gazprombank in recent days reduces the limits on its credit cards - this was reported by users of the forum "Keep Money!" and the People's Rating "Banki.ru". They stated that the maximum amount of borrowing could be reduced many times, but in most cases to a symbolic 10 thousand rubles. In this case, the reduction of the limit did not depend on the frequency of use of plastic.
The previous wave of reducing limits on credit cards was in December - then the changes were introduced by VTB, Sber and Alfa, "Izvestia" wrote earlier. Then with similar problems faced also clients of "Uralsib" and Renaissance Bank, follows from the feedback of forum users.
"Izvestia" sent inquiries to the mentioned banks, as well as other major players. VTB's press service specified that the Central Bank's policy has led to a tightening of conditions on all retail products, including credit cards.
Why banks worsen conditions on credit cards
Banks worsen conditions on credit cards because of the rising cost of funding - because the key rate is at a high level (21%), explained Freedom Finance Global analyst Vladimir Chernov. Against the background of the growth of the key rate, market participants offer higher and higher interest rates on deposits - according to Izvestia, they average 21%, but there are also offers of 25% for six months.
- Attracting funds to deposits is now more expensive for banks, so the income on the loan portfolio is gradually decreasing," he emphasized.
At the same time, the full cost of consumer loans is now a barrier - about 34%, wrote earlier "Izvestia". Therefore, borrowers tend to use credit cards more actively, as this is the only way to get affordable funds in debt, said economist Andrei Barkhota. Thanks to the grace period, customers can get funds and not pay for the use of interest - after its expiration, you can get a new card in another bank and start the process again. But it is not profitable for financial organizations.
- To compensate for the falling costs, banks can introduce new or increase old fees, cut loyalty programs or reduce grace periods,- said the expert.
At the same time, banks also cut limits in order to reduce the burden on their capital, said Ivan Uklein, Senior Director for Bank Ratings at Expert RA. Even unclaimed limits on credit cards require reserving (i.e. money attracted through deposits, which are now expensive).
The situation is also affected by the Central Bank's restrictions on the share of high-risk borrowers - those who spend most of their income on debt servicing, added Vladimir Chernov. For example, now a financial organization can have no more than 15% of high-risk borrowers among all its debtors. That is, a financial organization simply cannot lend money to borrowers who are too heavily indebted.
When credit card terms may improve
Nevertheless, credit card income is one of the most profitable for banks, said Vladimir Chernov of Freedom Finance Global. Interest on them is about two to three times higher than on ordinary consumer loans, and the full cost of the loan can reach 35-40% per annum. Even if a customer doesn't get to accrue interest because of the grace period, he or she may face fees for transferring or withdrawing funds, card maintenance or fees for additional services.
Since it is unprofitable to withdraw or transfer money from credit cards, Russians actively spend from them - and the bank in any case earns about 5-10% of income on credit cards thanks to commissions of 1-2% of all transactions of the client (this is the acquiring commission of the point of sale), said Vladimir Chernov. They are paid by the point of sale itself, where the purchase is made. In this case, credit organizations earn on the consumer activity of plastic users.
- At the same time, according to the statistics of large banks, about 90-95% of customers do not meet the grace period and pay interest at huge rates, - said Ivan Uklein from "Expert RA".
Although in absolute figures, the income from credit cards in banks may not be as high as other products, because the check on them is lower - but at the same time the product requires less investment, said Andrei Barkhota.
To attract new customers, banks in the future may begin to improve the terms of credit cards, concluded Vladimir Chernov. This is possible with a decrease in the cost of funding, when deposit rates will fall at least below the level of 20% - in this case, market participants will be able to allocate more funds for lending. This can be expected only after the key rate is lowered, which may happen not earlier than in the second half of 2025.
