Colombia card refinancing rates vary across banks

That matters because purchase-of-cartera programs are not just convenience products. They are one of the main ways households can escape high-cost card balances without missing payments, especially when spending rises around Halloween and Christmas. In a market where borrowing costs still vary sharply by lender, the cheapest refinancing offers can pull in higher-quality borrowers who already have payment histories, while weaker lenders are left competing on price or losing balances altogether.

The range is striking. At the top of the table, Finandina is charging 28.79%, Financiera Juriscoop 28.78% and BBVA Colombia 28.76%. In the middle sit major names such as Bancolombia at 18.30%, Bancoomeva at 19.56% and Banco Caja Social at 19.70%. The message for investors is simple: this is a margin-and-growth balancing act. Lower refinance rates can help banks win balances and deepen client relationships, but they also pressure yield if institutions are chasing the same pool of indebted households.

For investors watching the broader credit cycle, that competition comes as household debt in many markets is edging higher and borrowers are increasingly using new loans to service old ones. That is usually good for near-term loan growth, but it is not always good for asset quality. The banks that can selectively grow refinancing volumes without stretching underwriting standards are likely to emerge with stronger franchises. Those that rely on high rates to compensate for risk may keep income elevated for a while, but they also risk limiting demand and pushing borrowers back toward delinquency.

The long-term takeaway for investors is that card-debt buyouts are a window into bank pricing power, consumer stress and credit discipline all at once. If household spending stays firm and lenders keep competing for balance transfers, the winners will be the institutions with the lowest funding costs, the best risk models and the strongest customer retention. For consumers, the best move remains the old-fashioned one: compare the full cost, not just the monthly installment, and use refinancing only when it truly shortens the road out of debt.