Overview of Holvi’s credit card

How does the Holvi credit card work? 

When you sign up for a Holvi credit card, we open a separate credit account with its own IBAN and credit line in your name. Credit card purchases are charged to your credit account – not to your regular business (debit) account.

This helps you cover expenses now and pay them off later in flexible instalments over time. You can choose from 3 ways to pay off your credit balance:

• Repay next month
• Repay in 3 monthly instalments
• Repay in 6 monthly instalments

The Holvi credit card comes with a personalised credit line up to €5,000 and nominal interest rates between 8.0 – 16.6%.* 

*Credit lines and interest rates are decided by individual assessment when you apply for a Holvi credit card. Read more about our individual assessments.

 

Applying for a Holvi credit card

How do I apply for a Holvi credit card?

At the moment, the Holvi credit card is only available to a select number of sole traders. However, it will soon be available for general application. Sign up to our waitlist to hear when you can apply.

Once applications open, you can apply for a credit card by logging in at Holvi.com and going to Account settings > Payment cards > Order new.

 

Who can apply for a Holvi credit card?

The Holvi credit card is made to work seamlessly with features included in our Holvi Pro pricing plan – like expense management and bookkeeping prep tools that keep you tax ready. For this reason, it’s only available to customers on Holvi Pro. 

But don’t worry. You can apply for it on Holvi Lite and upgrade to Pro later, if your application is successful. Apart from subscribing to Holvi Pro, there are no other requirements to get your hands on a Holvi credit card. However, the outcome of your application is dependent on an individual assessment, which takes into account your credit score and other factors.

 

About the Holvi credit card

How does this differ from a Holvi Business Debit Mastercard?

When you buy something using your Holvi Business Debit Mastercard, funds are withdrawn directly from your business account. In other words, to use this card you’ll need sufficient balance on your Holvi account.

In contrast, when you buy something using your Holvi Business Credit Card, balance accrues in your Holvi credit account. You then pay off your credit balance in periodic instalments over a set period, as per your credit agreement. 

The Holvi credit card comes with a personalised credit line up to €5,000, which you can spend freely – regardless of the balance in your business account. 

 

Is it a virtual or physical credit card?

Both! You’ll receive a virtual credit card upon signing your contract. You can use it instantly to make online purchases – like hotel bookings and software subscriptions. Like all Holvi cards, it’s connected to your Holvi account and offers powerful tools to help run your business. It also has its own card number, so you can lock and unlock it for added security.

Both virtual and physical credit cards are included in your monthly fee, giving you options on how you split payments and track expenses. While they are two distinct cards, both cards share the same credit line and limit.

 

How long after applying will I receive my card?

After you’ve applied, it will take a few business days to process your application. If we make you a credit offer, you’ll receive an email and push notification prompting you to review and sign your contract.

Right after signing your contract, you’ll be prompted to order a physical credit card. It will arrive in approximately 14 days, and you can use it to make purchases in-store.

 

Is Holvi’s credit card contactless?

Yes! We’re a Finnish company, after all. Everything is contactless here, including your Holvi Business Credit Card. You can tap to pay anywhere around the world – wherever Mastercard is accepted.

 

Credit checks, credit lines and credit limits

How much is my credit limit?

Your Holvi credit card is linked to a personalised credit line set out in your contract. Our credit lines range from €1,000 – €5,000. A credit line is a fixed amount that you (the customer) can borrow from Holvi (a financial institution).

You can use your credit card to spend up to the limit of your credit line. For example, if your credit line is €3,000, you can spend a total of €3,000 on your Holvi credit card – but no more.

As you use your credit card, your remaining credit balance falls accordingly. For example, if you spend €100 of your €3,000 credit line, you’ll have €2,900 worth of credit left over. However, your credit automatically renews once debt is paid off. So as soon as you pay off the €100, you’ll once again have €3,000 available credit to spend. 

 

How are credit lines and interest rates determined?

Credit lines and interest rates are determined by an individual assessment when you apply for a Holvi credit card. In this article, you can read more about our credit checks and other factors taken into consideration when making a credit offer.

 

What is a credit check, and is it free?

Our credit checks are free and do not impact your credit score in any way. They’re part of any credit card application. The purpose? To help us compare industry standard lending rates against your individual creditworthiness. This way we can make sure that our offer is appropriate for both parties – helping you stay debt-free.

 

What else informs our credit decision?

On top of our credit checks, our individual assessment is based on:

Your history as a Holvi customer

Before making a credit offer, we take a look at your payment and income history with Holvi. Positive behaviour as a Holvi customer can improve your chances of being approved, so make sure to never miss a payment!

Expense to income ratio

We take your average monthly income and subtract your average monthly expenses to calculate what's left over. This way we know you’ll be able to repay the minimum amount.

If you’re interested, you can read more about this calculation in our blog post on how to use a credit card responsibly.

 

Where can I find my credit limit?

The quickest way to find your credit limit is by logging into the Holvi app on your mobile device. You’ll spot the Holvi Business Credit Card section on the home screen – note, this section will appear by default once you receive your credit card.

The Holvi Business Credit Card section shows the total spent and remaining balances for your Holvi credit card, as set out in your contract. It looks like this.

You can also find your credit limit by logging in at Holvi.com and going to Credit cards.

 

Repayment options / instalment plans

How do instalments work?

At Holvi you have 3 ways to pay back your credit balance. When applying for a Holvi credit card, you’ll also choose how you repay. 

 

Repay next month	Repay in 3 instalments	Repay in 6 instalments
Cover payment gaps	Split larger expenses	For maximum freedom
Pay back this month's expenses at the end of next month. Or you can pay back in this month – interest-free.	Pay back this month's expenses in 3 monthly instalments starting next month. Or you can pay back in this month – interest-free.	Pay back this month's expenses in 6 monthly instalments starting next month. Or you can pay back in this month – interest-free.

 

No matter which plan you choose, you can always pay back your full balance before the first invoice is issued, interest-free. You can also pay back any amount in between your minimum monthly payment and full balance – at any time.

You can read more about our instalment plans here.

 

How do I decide how many instalments I need?

How quickly do you want to repay your credit card purchases – in 1, 3 or 6 months? It all depends on how much financial flexibility you want.

Unlike other credit cards, Holvi doesn’t charge compound interest (interest on interest). This means that by paying off your purchases in smaller chunks, you won’t end up paying excessive amounts in interest fees.

Remember, no matter which plan you choose, you can always pay back your full balance before the first invoice is issued, interest-free. Or pay back any amount between your minimum monthly payment and full balance – at any time. 

We seriously can’t state this enough. We’ll never lock you into holding a credit balance longer than you want.

 

Credit card balance and billing

How often is my credit card balance updated?

With each credit card transaction, your account updates in real time. Your balance in the Holvi Business Credit Card section of the Holvi app shows how much of your credit line is available to spend at any time. It consists of:

• Paid and reserved payments*
• Refunds
• Repayments

*A reserved payment occurs when the seller puts a transaction amount on hold but the money hasn’t yet been withdrawn from your account.

If you access your account on Holvi.com, you can find your up-to-date credit balance by logging in and going to Credit cards.

 

Where do I find my credit card bill?

We'll notify you of new credit invoices by email and push notification. To pay off your credit balance, simply confirm the unverified payment we create for you, linked to you in the push notification.

Alternatively, you can find your unverified payment and full invoice details by logging in and going to Transactions.

Your credit invoice is due on the last day of the month. However, if you wish to pay back your balance early, you can adjust the payment date. The amount will transfer to your credit account on your chosen payment date, and your balance will adjust accordingly.

Your credit invoice includes:

• Total credit balance
• Minimum repayment amount*
• Interest and service fees

*If you choose to repay next month (in 1 instalment), your minimum monthly payment will be your full balance.

You can find previous months’ statements by logging in at Holvi.com and going to Reports > Credit card statements.

 

What is a minimum monthly payment?

The minimum monthly payment is the lowest amount you can pay on your credit account per month while staying in good standing with Holvi. It’s calculated as a percentage of your credit balance, according to your repayment plan. 

We clearly state the minimum monthly payment on your credit card bill. Make sure to pay at least this amount to stay in good standing credit-wise.

 

How is interest calculated?

With Holvi, you’ll only ever pay interest on what you owe – i.e. your remaining balance. No interest on interest. In fact, interest payments actually decrease each month.

It looks complicated, but it’s deceptively simple. Here’s how it works (bear with us):

 

Interest = Principal (your balance) x Annual Percentage Rate x DayCountFactor

The formula for the DayCountFactor is:

 

Date1: Starting date for interest accrual. In our case, the first day of the month.

Date2: Date through which interest is accrued. In our case, the last day of the month.

Days(Date1, Date2): Function giving the number of days between Date1 and Date2 on a Julian basis (all days counted). So, the number of days in the calendar month.

For example, September would be Days(1.9.2021,1.10.2021) = 30

DiY (Days in Year): 360 (standard in the banking world)

 

Example of interest calculations

Say you’re on a 3-month instalment plan at 10% interest. In September you spend €1,000 on your credit card.

Your first bill comes at the start of October. It contains €333.34 (€1,000 / 3 months) plus €8.30 interest (1,000 x 10% x 0.083).

Your next bill comes in November. It contains €333.33 (€1,000 / 3 months) plus €5.73 (666.66 x 10% x 0.086).

Your last bill comes at the start of December. It contains €333.33 (€1,000 / 3 months) plus €2.77 (333.33 x 10% x 0.083).

Your debt will be paid off by December with a total interest of only €16.80. Hurrah!

 

Are there any hidden fees?

Here is a list of all fees associated with the Holvi Business Credit Card. You can find these in your full contract and our fee schedule.

Fee	Type	Description
€5	Payment reminder fee	Charged if a payment is not received by the monthly credit card invoice due date.
€45	Reimbursement of an overpayment	Charged if a customer sends a SEPA payment to the credit payment account IBAN that brings the account to positive balance and Holvi is required (at our own discretion) to return the funds to the sender’s account. In other words, you can’t use your credit account to store vast sums of money.
€10	Closing a credit line (by Holvi)	Charged when Holvi ends a Credit Agreement and closes a credit line – for example, due to fraud, AUP violation or other breach of terms. This is not charged if the customer wants to stop using their credit card and initiates a credit account closure.
€25	Delivery of the payment plan for a closed credit line	Charged when a customer requests to end their Credit Agreement. In this case, we’ll need to deliver a final invoice with the overall outstanding debt. The customer will be required to settle all at once, in order to conclude the Credit Agreement and end their credit agreement.
€10	Report on an amount drawn in excess of the credit limit	Charged for the notifications to customers if they’ve withdrawn an amount in excess of their credit limit. For example, a transaction exceeding the authorised amount, when spending at hotels or car rentals. (No VAT charged.)
€10	Fee for changing the credit limit	Charged when a customer submits a request to change their credit limit. Only charged if this change is approved. (No VAT charged.)
€10	Agreement on a repayment holiday or deferral period	Charged when Holvi and the customer come to an agreement on a new repayment schedule. (No VAT charged.)
€25	Other administrative tasks (by hourly rate – min 1 hour)	n/a

Paying off your Holvi credit balance

How do I pay my off credit balance?

According to whichever plan you choose, you'll pay back your spending in either 1, 3 or 6 monthly instalments via bank transfer to your credit account. It works like this:

1. At the start of the month, your credit statement will arrive and you’ll find a draft payment for the minimum repayment amount in your transactions. If you’re on a 1-month instalment plan, this draft transaction will contain your full credit balance
2. We’ll let you know via push notification when it arrives, so make sure they're enabled
3. Simply confirm the repayment – or if you’re on 3 or 6 instalments, adjust the amount if you want to repay more. You have until end of the month to pay
4. As soon as you confirm, the amount will transfer to your credit account and your balance will adjust accordingly

You can find all the details in your credit card statement, sent via email at the start of each month. It includes:

• Total credit balance
• Minimum repayment amount
• Interest and service fees

 

What happens if I miss a payment?

Your monthly credit card invoice arrives on the 5th of each month. It includes the minimum payment to be received by the due date, which is on the last day of the same calendar month.

If we do not receive at least the minimum amount by the due date, we’ll send a payment reminder email to notify you of the late payment. This incurs a €5 reminder fee, as per our fee schedule. At this point, we’ll also lock your Holvi credit card until a payment of at least the minimum amount is received.

 

After 45 days of not receiving the minimum payment

If at least the minimum amount isn’t received within 45 days of the invoice due date, we may choose to end our credit agreement with you. If this happens, a demand for repayment of all outstanding instalments (including fees and interest) will follow, as per our credit agreement.

If needed, Holvi may also take legal action – including the use of debt collection agencies – to recover any outstanding debts and fees. This is all outlined in your credit agreement.