Brazil credit card revolving interest rates fall to 436.2% in July

Average interest rates for credit card revolving credit in Brazil fell to 436.2% per year in July, down from 442.4% in June, according to data from the Central Bank. This represents a monthly decrease of 6.2 percentage points.

Interest rates for installment credit also declined, moving from 191.4% per year in June to 189.3% in July. When considering all credit card operations combined, the average total rate dropped from 97.3% to 91.6%.

Despite the decrease, revolving credit remains one of the most expensive credit modalities for households. The reported annual rates are statistical annualizations of monthly charges; they do not necessarily reflect the total amount a consumer pays, as many users do not remain in the revolving cycle for a full 12-month period.

Since January 2024, legislation has been in effect to limit interest and charges on revolving and installment credit. The law mandates that the total cost of these operations cannot exceed 100% of the original debt amount.