I select Mastercard because it is easy to compare credits cards between the following countries.

I am looking the prices of Mastercard in Finland, Estonia and Norway. All banks have the same amount of interest-free days, when you can pay 15th of each month. Here the result, Finland and Norway:

Finland Nordea Mastercard Silver 3 month euribor + 8.5%
Estonia Nordea Mastercard Standard 18%
Norway Nordea Mastercard 19.5% p.a. while effective with e-bill (which you have to have) 24.87%

Confusion previously in interest-free days

Banks of Nordea Finland, Estonia and Norway advertise their similar cards differently. Bank Estoinia and Norway say you get "maximum 45 days interest-free time", while Nordea Finland says you get "on average 30 days interest-free time". In each bank, you can pay your shoppings at 15th of the next month so you get 45 days maximum in each bank if you buy your shoppings at 1. day of the month.

So the best way is to get credit cards from Norway (NOK) and Finland (EUR), since you get lowest interest rates there.

Assume that you want to pay always your bills before you must pay the interest.

I think the current interest of Mastercard in Finland is about 8.8%, while in Norway for the same card 24.8%.

Why is the interest so much lower in Finland than in Norway?

  • 1
    It is all about Pareto distribution, the small portion of customers make the profit for firms -- and if there is enough people willing pay high-prices, then there is no incentive to make costs down, MR=MC. I think this is very country-specific thing: some people like to pay things on time and so on.
    – hhh
    Mar 12 '13 at 21:37

3 month euribor is .201% today. So, 8.7% for Finland Mastercard. Card issuers' rates vary, and I've seen rates in the US from 8 or 9% right up to 24%, similar to the range you show.

If you plan to pay in full each month, I'd take the longer grace period regardless of rate. I can honestly say I don't know the rate on my card. I pay in full every month, never pay interest, so it might be 24%, but I wouldn't know without pulling up a statement.

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