There are big differences in credit card costs – always take into account the annual percentage rate of charge

Less than one third of Finns compete for their own credit card. In most cases, the credit card chosen by your bank is the credit card. However, few people are familiar with the different types of credit cards and cost differences between banks. For a particular financing need, a regular loan may be a better financing option than continuous use of a credit card.

A study commissioned by Eugéniet showed that Finns are not competing for their loans or consumer loans. Only less than one third of Finns compete for their credit cards. The reasons for not offering a credit card were, among other things, simply not figuring out how to tender a credit card.

The credit card is taken from a bank


Where you have already done business. Of course, managing your money matters is clearer if all your accounts and cards are in the same bank. On the other hand, significant savings can be missed if credit cards are not compared or other financing options are considered.

We compared the most common credit cards offered by banks with the total cost of the cards. The total cost of credit cards is formed

  • of the reference rate,
  • margin,
  • account management fee and
  • monthly or annual fee.

In addition, the effective annual percentage rate of charge is a good indicator of the total cost of credit. We will briefly review these concepts below. An article we write on how to calculate a borrowing rate can also be helpful here.

The reference rate


The reference rate is the publicly quoted interest rate to which the loan is linked. Common reference rates are the Prime and Euribor rates. Euribor is the common reference rate for euro countries published daily. There are different Euribor rates and the name of the rate refers to the time when the loan rate is being revised. That is, the 3-month Euribor rate is revised every three months. The Prime rate is the interest rate set by an individual bank for a loan, which the bank may unilaterally change at its own discretion. Prime interest rates are influenced by general interest rates and inflation expectations.


Margin is the percentage paid by banks on the credit reference rate that covers the credit risk. Thus, for a credit card, the interest rate consists of the reference rate (eg 3 months Euribor) and the bank’s own margin (eg 10%).

Account management fee

Account management fee

Banks will charge an account management fee when the cardholder uses the card’s credit feature and reduces their debt with a minimum down payment. The account management fee is generally between € 2 and € 5 and is added monthly to the total cost of the credit.