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#1 does not apply. If your balance goes below zero, you start paying interest. It's a pretty high rate (12-18% or so), but nothing that will get you into troubl
by gpvos 15y ago
#1 does not apply. If your balance goes below zero, you start paying interest. It's a pretty high rate (12-18% or so), but nothing that will get you into trouble as long as you top it up within a week or even a month. There are no other overdraft fees.
#2: I don't know, I've never encountered a reward card. They're certainly not common here, probably don't exist at all.
#3: You have a point there, but interest on simple current accounts (as opposed to savings accounts) is often zero percent here, certainly not much higher than 1% or so.
(I live in the Netherlands.)
- guan 15y agoA little clarification, based on Danish conditions but I assume it’s similar in other countries: You can’t just overdraw indefinitely, you have an authorized overdraft limit. For some people the limit may be zero so they’re not allowed to overdraw. If you overdraw beyond this limit, you will pay a higher penalty rate and possibly also other fees. People with good credit can often negotiate a much lower rate than 12%.