Avia Collinder, Business Writer

The names Keycard, Visa and MasterCard are all familiar to holders of plastic, but not as well known is just how many options or different types of cards are on the market and just how much credit is consumed by Jamaicans.

The banks generally approve card issues based on income or a person's net worth.

And since only a few cards are backed by cash, or 'cash secured', the cost of credit is expensive - starting at 29 per cent for local-currency cards, and 17.5 per cent for foreign-currency-denominated issues.

A Sunday Business survey among local banks identified 24 varieties of consumer credit cards, with limits as low as $5,000 to as high as $900,000 for Jamaican-currency-denominated cards.

Another six cards targeted at businesses are on the market, bringing total cards available to 30.

Lowest limit

The lowest limit on consumer credit cards is offered by National Commercial Bank on its Keycard Classic.

The most exclusive card category, the Platinum, is offered by invitation only, and in the case of at least one bank, a net income of a minimum of $450,000 per month - representing real assets after debt is subtracted - is required.

The platinum cardholder is offered credit limits of US$5,000-US$15,000.

The NCB Gold Keycard is also by invitation only, with a minimum credit of $350,000 offered.

FirstCaribbean Visa Platinum offers minimum credit of $300,000 but to qualify, your monthly pay must be in the same region.

The cards permit access to funds for any purpose - including shopping for consumer items abroad in the case of dual-currency cards.

The limit received will be determined by personal income and debt-servicing capability.

Credit-card receivables - that is, credit consumed but not yet repaid - reported monthly by the Bank of Jamaica, is used as a proxy to value the sector.

Credit-card receivables were reported at $16.88 billion. Scotiabank Jamaica said in February that it commanded 48 per cent of that market, and has laid claim to being the top issuer of credit based on receivables to October 2008, when receivables crested $16.2 billion.

Scotiabank this week provided more information, saying its client base for credit-card subscriptions was around 100,000, and that the amount of credit sold last year on its MasterCard issues alone amounted to $21 billion, up from $17 billion in 2007 and $13 billion in 2006.

Various interest rates

The bank also issues Visa cards.

Interest rates for consumers range from 29 per cent to 49.75 per cent annually, or between 2.7 to 4.8 per cent monthly for Jamaican-dollar-denominated cards; and 17.5 per cent and 18 per cent for USD-denominated cards.

A cash-secured card, if offered by the bank, can range up to 10 per cent cheaper, but not all banks offer the lower rate on cash-backed cards.

To qualify for a credit card, your income, as well as ability to service the debt, will be examined.

Carlene Bradshaw of NCB's Red Hills Road branch in Kingston explains that if, for example, you are paying more than 50 per cent of your salary in debt and mortgage payments, you may be refused a card.

But points in your favour might include length of time you have been working in your job and living in your community.

If you are successful in getting a card, it would be in your interest to ask about the interest rate applicable and the billing date - the date on which interest is applied and before which all amounts outstanding must be settled if you do not want to attract interest charges.

In addition to interest charges, there are membership fees, fees for cash advances, overlimit fees, and numerous other charges which will apply with added penalties for going over limit or failure to pay the minimum balance required. Payment in full within the billing period means that no interest is paid and no penalties attracted.

Elena Villafana Sylvester, vice-president of retail banking at the Bank of Nova Scotia, says that as much as one-third of the nearly 100,000 consumer clients pay no fees because they comply with usage guidelines.

Kerine Hamilton, marketing manager in the Business Services and Group Marketing and Communications Division of NCB, says subscribers to business credit cards tend to be more circumspect in meeting paying off their cards to avoid fees, and are especially conscientious "in the current economic climate".

The same, she said, goes for consumers, although she declined to indicate what proportion managed to avoid fees on a regular basis.

Scotiabank, however, says 30 per cent of its clients pay on time and avoid all charges.

Interest on credit cards, local banks state, is calculated on the daily average balance of money spent.

avia.ustanny@gleanerjm.com