Term
CAT (total annual cost)
Costo Anual Total: the standardized measure in Mexico of what a credit really costs per year, fees included. Banxico requires it to be shown so you can compare offers.
In pesos: A card with 38% interest but a CAT of 60% is charging you a lot in fees on top of the rate. And the CAT is always quoted sin IVA: the tax on the interest rides on top of it.
Where to go deeper
4/4 6 min Read Your first credit card (and how not to wreck yourself) What the CAT really is, why the minimum payment is a trap, how the interest starts running, and what a credit history buys you later.More terms on the same topic
Educational content only: not financial, investment or tax advice. The numbers are examples to understand the idea, not a forecast or a recommendation.