In Norway, credit and debit cards are two of the most common forms of payment we have. The time when you went with pockets full of small money is over, and now it’s just a small plastic card that you can sneak into your pocket. Not only is it easier to use credit cards, it’s also safer.
1. You actually buy goods on credit
With a credit card you do not spend your own money. The way it works is that every time you use your card you borrow money from the bank. If you repay your “loan” within the interest-free period then it should not cost anywhere to use a credit card, especially if you have a charge-free credit card. Usually, banks will give you a credit limit of $ 10-50,000 depending on your financial situation.
2. The interest rate is nothing to joke about
Most credit cards have an effective interest rate of 20-35%, which means that it can be very uncomfortable if you are unable to repay the outstanding amount each month. The luxury trap has said it, we say it again, make sure you have good control of your personal finances before applying for a credit card.
3. New credit cards on the market
In recent years, credit cards have become more popular with benefits such as discounts and cashback. In addition, free credit cards such as Credits Visa and Fee Free Visa have also been launched. These credit cards can give you attractive benefits, but it is important to spend some time reading between the lines.
4. Read section 54b of the Finance Agreement Act
Section 54b of the Financial Agreements Act is a legal provision that safeguards your rights when purchasing on credit. Read it, enjoy it and remember it!
5. Keep receipts while traveling
Most credit cards have travel insurance, including if you have paid at least 50% of the travel with the respective credit card. It is therefore important that you remember to keep receipts when you are traveling in case you lose something or get stolen assets.