In doubt about credit costs?

If you have taken out a loan or are considering taking out a loan, you have almost certainly come across the term “credit costs”.

It is a very relevant trick when talking about loans and it is actually no matter what type of loan it is.

Whether you choose to take out a mortgage, consumer loan or bank loan, you will encounter the term.

It is therefore extremely important that you understand what it means if you are considering borrowing.


What are Credit Costs?

credit problem

You may have heard the term OPOP ? The APR stands for “annual costs as a percentage” and is a percentage of the total loan. It is an interest rate that indicates what your cost of the loan is, expressed as a percentage.

The same goes for credit costs, but this is expressed in a specific amount in kroner and penny.

So that’s just the amount that is behind the percentage in the OPP.


What are the costs of credit?

What are the costs of credit?

Credit costs include all the costs of taking out a loan. In fact, there are only two overhead costs, namely:

  • interest
  • fees

Unless this is a mortgage, where there are also contributions.



Interest is what you continuously pay to be allowed to borrow money from a lender (bank, finance company, mortgage institution and the like).

Interest rates are calculated in many different ways. You may come across terms such as nominal interest rate, debit rate and face value .

If you are confused about all the different interest rates, we recommend that you read our blog posts “Doubting interest rates? Here is the ultimate guide ”


As well as with interest, fees are also found in many shadows.

However, fees are opposite to the interest rate, usually something you pay in connection with the creation of the loan. However, there may be ongoing fees, such as a payment fee or similar.

The fees associated with taking out a loan vary greatly depending on the type of loan.

In general, mortgages, whether mortgage or bank loans, are known for having high foundation costs. This is partly due to a registration tax to the state.

Examples of fees are:

  • Things Opening Fee
  • Loan Case Fee (Establishment Cost of a Mortgage Loan)
  • establishment fee
  • end fee

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