What effective interest really means
Look at the interest rate, fees and repayment conditions together. A card with no annual fee can still have borrowing costs.
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Effective and nominal interest
Nominal interest is the stated borrowing rate before fees. Effective interest expresses the annual borrowing cost including relevant fees. Use the issuer’s full representative example to see the amount borrowed, repayment period, borrowing cost and total repayment.
Compare the same borrowed amount
The published examples use different amounts: Bank Norwegian NOK 15,000, Morrow NOK 12,000 and TF NOK 25,000, each over 12 months. Their cost totals are not directly comparable. Zero annual fee does not make interest-bearing borrowing free.
Purchases and cash follow different conditions
An interest-free purchase period depends on paying the full balance by the due date and the card’s conditions. Morrow and TF charge interest on cash withdrawals from day one. Check cash withdrawals, transfers and bill payments separately before using the card.