CAT stands for Costo Anual Total. It is the number Mexican lenders must publish so borrowers can compare the real yearly cost of a loan. It includes the interest rate and most of the fees the lender charges.
Why the interest rate alone is not enough
Two loans can show the same interest rate and still cost different amounts. One may charge an origination fee, the other may not. One may compound interest monthly, the other daily. The CAT captures those differences in a single percentage.
Because the CAT is standardized, it is the cleanest way to compare offers when you use the same loan amount and the same repayment term.
How to use the CAT when you compare
Ask every lender for the CAT on the exact amount and term you need. Write the numbers down side by side. The lower CAT is usually the lower total cost, but only if the amount and term are identical.
A longer term can make the monthly payment smaller while the CAT stays high. Always look at both the CAT and the total amount you will repay.
What the CAT does not include
The CAT does not include late fees, insurance you choose to add, or costs that depend on how you use the money after you receive it. It also assumes you make every payment on time. If you expect to pay late or to refinance, the real cost can be higher than the published CAT.
The final CAT you receive after the lender reviews your income and debts can differ from the first number you saw. Treat the first CAT as a reference, not a guarantee.
Additional points to consider
Comparing options takes a few extra minutes but can save a significant amount of money over the life of the product. Write down the key numbers (rate, fees, total cost, term) for each offer so you can see the differences clearly instead of relying on memory.
Official websites update their terms regularly. The numbers you see today may change after the provider reviews your specific information. Always confirm the final figures on the provider’s site before you accept any offer or create an account.
If something is unclear, use the help or contact section on the official website. Reputable providers explain their fees, rates, and requirements in plain language. Third-party summaries are useful for orientation but do not replace the official information.
Take your time. Rushing an application or a signup because of a limited-time promotion often leads to choices that cost more later. A clear understanding of the total cost and the conditions is more valuable than speed.
Note: This site is independent and informational. Applications, decisions, and final terms happen only on the official website of the provider.