Central Bank Achieves Significant Reduction in Credit Card Interest Rates!

Regulation on Credit Card Interest Rates by the Central Bank of the Republic of Turkey

The Central Bank of the Republic of Turkey (CBRT) is significantly reducing the costs of credit cards for consumers with the recent regulation on credit card interest rates. The communiqué titled "Amendment to the Communiqué on Maximum Interest Rates Applicable to Credit Card Transactions" published in the Official Gazette facilitates the determination of new interest rates.

New Upper Limits for Credit Card Period Debts

With the amendment, the upper limit applicable to credit cards with a period debt of below 25 thousand lira has been updated to 30 thousand lira. For credit cards with this limit, the maximum interest rate applied has been reduced from 39 to 14 basis points. Thus, it is expected that the costs of these cards will further decrease.

Innovations for Mid-Level Indebted Cards

For credit cards with a period debt between 25 thousand lira and 150 thousand lira, the new limit has been set between 30 thousand lira and 180 thousand lira. The basis points used in determining the maximum interest rate for cards in this group have been reduced from 89 to 64. These changes aim to relieve the financial burdens of mid-level indebted consumers.

Interest Rate Reduction Opportunity for High Indebted Cards

The upper limit for credit cards with a period debt of over 150 thousand lira has been increased to 180 thousand lira. The basis points used to calculate the maximum interest rate for these cards have been reduced from 139 to 114, aiming to provide consumers with more favorable interest rates.

Regulation on Cash Advance Interest Rates

In addition, the cash advance and credit account interest rates have been reduced from 4.50% to 4.25%. This situation provides a significant advantage for individuals who want to quickly meet their cash needs.

Entry into Force of New Interest Rates

The maximum contractual interest rates for credit cards have been determined as 3.25% for credit cards with a period debt balance of below 30 thousand lira, 3.75% for cards between 30 thousand lira and 180 thousand lira, and 4.25% for credit cards with 180 thousand lira. These rates will come into effect on January 1, 2026.