Largest banks introduce new credit cards

TALLINN - Hansapank this week introduced the new credit card "Trump" with no fixed-limit period and 16 percent interest of used credit limit that should be paid by the date chosen by the client.

Hansapank's director Raul Parusk said the new card, available since Nov. 27 should be a pleasant innovation for the bank's clients who are not satisfied with present credit cards issued at Hansapank.

The head of the personal loan department, Aivar Jogi, said Trump-type cards are generally more popular than the charge cards that were available in Estonia before. The credit cards available at Hansapank before had a certain deadline on credit limit payback (usually the 10th of each month) and an annual fee of 200 kroons, but no interest of used limit, said bank spokeswoman Kristina Tamberg.

Parusk said the bank will probably launch an analogous product in Latvia and Lithuania in the near future. As of the end of October, Estonian banks issued 26,703 international credit cards, 16,887 of which were issued by Hansapank. A person older than 18 with a monthly income of at least 4,000 kroons ($216) can get a credit card in Hansapank. In the second major Estonian bank, Uhispank, a service similar to Trump with 18 percent interest has been available since this summer, according to the bank.

In response to the launch of a revolving credit card by rival Hansapank, Uhispank will cut the interest on debt under credit card installment plans and scrap the fee for opening an installment plan.

Jaan Tamm, director of Uhispank's electronic banking division, told BNS the terms and conditions of credit card installment plans will change from Dec. 1 for all international credit cards issued to private individuals. According to BNS, the main difference with the revolving credit card offered by Hansapank starting from Monday is that in Uhispank's case the interest count starts only from the following month's payment day. In comparison with Hansapank's Trump card, which is issued free of charge, and on which no fixed annual fee is charged, the Uhispank installment plan service will be available also to holders of Uhispank's ordinary credit cards and cards with a small credit limit.