Last updated: 20 May 2026
The nominal rate is the interest on the credit itself. The effective rate adds the fees and shows the real annual cost. Two cards with the same nominal rate can have different effective rates if their fees differ, which is why the effective rate is the correct figure to compare.
Forbrukertilsynet (the Norwegian Consumer Authority) requires the effective rate to be shown as prominently as the nominal rate in all credit marketing, precisely because it gives the honest picture of the cost. A standardised cost example must also be stated.
The key thing to remember: the effective rate only applies if you carry a balance. Pay the full invoice by the due date and the card is interest free, however high the effective rate is. If you plan to spread payments, choose the card with the lowest effective rate, such as Instabank at 21.66%.
Effective rate 21.66%, NOK 45,000 over 12 months. Cost NOK 4,963, total NOK 49,963.
Effective rate 29.89%, NOK 15,000 over 12 months. Cost NOK 1,695, total NOK 16,695.