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How Does NordCard Creditlimit Work?

Peter has received NordCard Creditlimit amounting to 1000 EUR. 

Peter plans to use the allocated amount only when he needs extra cash. While Peter doesn’t use the allocated Creditlimit, he doesn’t have to pay interest

In winter, Peter plans to go on an annual trip to the ski resort, where he wants to spend 100 EUR from the allocated Creditlimit amount.

 

After Peter uses 100 EUR, 900 EUR from the allocated 1000 EUR still will be available to him. 

Peter plans to return all the used amount within 5 months, making only monthly minimum payments.

Peter could use the option of returning the entire used amount in the following month, thus paying less interest for the used Creditlimit. 

Peter knows that the information about his monthly minimum payments will always be available in his Online Banking system account. He also remembers that he has to make these payments not later than on the 15th date of each month

 

In the first month, Peter will have to pay 26.90 EUR of which 20 EUR is the repayment of the principal amount (2% of the allocated Creditlimit), and the remaining amount is the interest for Creditlimit (0.23% a day of the spent Creditlimit). 

Peter is sure that he won’t miss any payment, because, on the 1st date of each month, he will receive SMS messages notifying him of his payment amount. Thus, Peter will have 15 days to make his monthly minimum payments. 

WITH EACH FOLLOWING MONTH MONTHLY PAYMENTS ARE REDUCED

Since every month Peter returns 20 EUR of the spent Creditlimit amount, thus reducing the borrowed amount, and interest is charged on the used amount of the allocated Creditlimit, interest also is reduced. 

 

Peter knows that the repaid part of NordCard Creditlimit is once again available to him. He doesn’t have to fill in a new application form to get additional Creditlimit. 

Peter may return the entire spent Creditlimit in one lump sum, and thus reduce the interest charged on the usage of Creditlimit. He also may divide repayment of the spent Creditlimit in smaller payments, and thus make a bigger purchase, repaying it over a longer period of time. Peter knows that the repaid part of the spent Creditlimit will be once again available to him.

 

Having returned 100 EUR, the Creditlimit amounting to 1000 EUR will be once again available to Peter. 

Peter is happy, for he knows that NordCard is his reliable financial assistant.
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