Luottokorttiluottoa

Luottokorttiluotto, also referred to in English as a credit card overdraft or credit limit, is a facility that allows cardholders to borrow money up to a predetermined maximum amount on their credit card. The borrowed amount is drawn automatically when the cardholder makes a purchase that exceeds the available balance on the card. It is a form of unsecured revolving credit, meaning that the borrower can repay and borrow again without a new loan application, as long as they do not exceed the set limit.

In Finland, luottokorttiluotto is regulated under the Finnish Consumer Credit Act, which requires issuers to provide clear information about interest rates, fees, and contractual terms. The interest rate charged on the borrowed amount is typically higher than rates for loans, and late payment fees may apply if repayments are not made on time. The facility is often used for short‑term cash needs or emergencies, but excessive use can quickly lead to high debt burdens and affect a person’s credit rating.

Credit card providers determine each cardholder’s limit based on factors such as income, credit history, and overall debt profile. Cardholders can request a higher limit, but the issuer may require additional documentation or a review of the applicant’s financial situation. Responsible usage, timely repayments, and regular monitoring of the credit card statement are essential to maintain financial health and avoid arrears.