As we move into 2024, one thing is clear for most of us moving forward: credit cards are a part of life now, and they’re not going anywhere any time soon. It’s left a lot of us wondering what we should do as far as our options go. After all, there are so many different cards to apply for, it can be a really difficult decision to find one that suits us.
Today, we’ll be covering some of the options that you’ll have at your disposal here in Norway. Whether you’ve lived here your entire life or you’ve recently moved, knowing what’s out there can be a significant benefit. Make sure to stick around if you want to learn about how credit cards work here as well as some of the types that you can expect to encounter.
Understanding Credit Cards: The Basics
In order to understand the different types of them, let’s first look at some of the basic details that you’ll need to know about them (whether you’re getting one in Norway or abroad). There’s a lot to wrap our heads around here, but once you know all of this stuff, you can get a better sense of what sort of card will work for your financial needs.
The first thing to know is that the organization who gives you the card is usually known as an “issuer” or a “lender.” The former is used more often in this context, because while they are technically both, a lot of people don’t call credit cards loans directly. This is the sort of language you’ll be encountering.
Next, remember that with each card, there’s going to be some sort of credit limit. This will depend on a variety of factors such as who your issuer is, the specific card you’ve applied for, your own credit needs, and your financial background. You can’t spend above this limit.
After submitting an application and being approved for a card, you’ll be able to activate it and utilize it to make purchases. When a credit card is used for a purchase, the cardholder is essentially borrowing money from the card issuer to make the payment. The borrowed amount is added to the cardholder’s outstanding balance. It’s pretty simple stuff.
Each month, you’ll get access to a card “statement.” Credit card issuers typically send monthly statements to cardholders. These summarize the transactions made during the billing period, including purchases, payments, and applicable fees. The most important part is that it indicates the minimum payment due and the due date.
If the cardholder doesn’t pay the full outstanding balance by the due date, the card issuer charges interest on the remaining balance. This interest rate is known as the Annual Percentage Rate (APR). It can vary based on the credit card and the cardholder’s creditworthiness – so, you’ll want to know what your credit score is before you get a card.
Something to note is that most credit cards offer a grace period of sorts. It’s typically between twenty-one and twenty-five days. During which, no interest is charged on new purchases if the previous balance has been paid in full by the due date. This period allows cardholders to utilize interest-free credit if they pay their outstanding balance entirely each month – it’s a helpful tool.
Types of Cards and Rewards
As you may have guessed, a lot of credit cards offer some form of rewards or perks for making purchases with them. We can think of them as incentives of a sort. While we’ll be covering them in depth here today, you can get an idea of what they look like on this page: https://www.kredittkortinfo.no/santander-red/, at least if you want a better look of the cards we mentioned in the title!
Cash Back Cards
Perhaps the most obvious example of a rewards program is a cash-back one. Cashback rewards allow cardholders to earn a percentage of their purchases back in cash. The cashback rate is typically a percentage of the total purchase and can vary depending on the spending category or merchant, so keep that in mind.
Often, each type of card will have a specific category of purchases that will be eligible for cash back. A common example is restaurant visits – many cards will give you cash back for dining out. Naturally, you’d want to look for a different type of card if you aren’t someone who dines out often, right?
What we’re getting at here is that you should feel free to shop around between the options out there until you find one that suits your needs. Of course, the ones that offer a percentage of cash back on any purchase tend to be the most sought after, but they often have lower percentages back. Decide for yourself if the trade off is worth it for you.
Travel Cards
Travel rewards programs offer points or miles that can be redeemed for flights, hotels, rental cars, or other travel-related expenses. These programs may also include perks like airport lounge access, concierge services, or travel insurance. It will depend on your issuer in that case, as well as whether you’re getting a specific airline card or something else.
Typically, they’re a good option for folks who are already frequent fliers. If you don’t fly often or you aren’t someone who travels multiple times a year, you’ll likely want to go with something else.
Gas Rewards Cards
Gas rewards programs provide additional incentives for fuel purchases, as you may have already guessed. Cardholders can earn higher rewards rates or receive cashback on gas station purchases. Considering the price of gas right now, these can be quite handy if you’ve been frustrated by costs of fuel.
Additional Perks
While rewards programs are often the biggest draw for most folks who get credit cards, what other types of perks and benefits should we be on the lookout for? Let’s face it, considering all of the ones on the market, we should try to get as many bonuses as possible when we do settle on one that we like.
Certain issuers will provide additional bonuses when you shop in a particular manner. Online shopping bonuses are pretty popular right now, especially here in Norway. For anyone who finds themselves shopping online more often than not, then this might be something to watch for!
Something else to seek out is convenience. Ideally, credit cards can be used digitally as well as physically, including on our phones. Certain issuers won’t allow for them to be connected to programs like Apple Pay (or similar equivalents), for instance. This can be quite annoying, especially if you’re trying to limit the things you carry around in your wallet.
Overall, the market has evolved a lot over the past few years. We don’t have to settle for a credit card with bad terms and no perks these days. Take the time to do your research when you’ve decided it’s time to open another credit card account.
This way, you can ensure that you’ll qualify for it (or at least, be fairly certain) before you even submit an application. You can also plan around what your potential monthly payments will be, and understand the interest rates being offered to you!
