Some are scared of credit cards after all the scary examples of credit card debt that pile up for people. The luxury trap has had to help many who have gone into credit card cases. It’s also not a joke, because if you don’t pay within the interest-free period, interest rates can be sky high. It is therefore very important to be aware of how much it costs to spend. In many situations, credit cards can be the most convenient means of payment and if you use them wisely it may be worth using compared to a debit card. It doesn’t cost anything and you can even profit from it.
Choose the right credit card
It may seem like everyone offers credit cards a day so you can quickly get bored, but the costs and benefits vary so it pays to spend some time choosing the right card. For many, it can be a good idea and have more than one card for use in different situations. For example, some credit cards provide cashback or rebates when buying fuel, while others offer travel insurance if you use the card to pay for the trip. We have recently voted Norway’s best credit card for assistance in our search. No matter which card (s) you choose, keep in mind that credit cards do not give you more money even though you get more flexibility in your everyday life, so do not spend money that you will have trouble paying back later.
Flexible down payment
One of the benefits of paying by credit card is that you decide how quickly you want to repay the credit. You can vary amounts from month to month, thus smoothing your spending over time. Think long term and don’t forget that the money you spent is actually credit, in other words, a loan.
Limit the cost
The first thing you should do to reduce the cost is to choose a credit card with no annual fee. Also make sure that you do not have to pay any fees when you shop with the card. When you withdraw cash at an ATM, you should in most cases use your regular debit card. Credit cards either have an ATM fee, or interest is paid from the first krone. Instead, use your credit card to purchase goods and services. If you pay down the full amount on your credit card before the interest-free period, often between 42 and 55 days, the purchase is interest-free so it won’t cost you more than you paid for the purchase.
Imagine that you have been wanting to replace the couch for a long time. You’ve saved up some, but can’t afford to buy it until the payday comes at the end of the month. One day you find that there is sale in the furniture store and the sofa you have decided is now on sale at half price. If the sale only lasts for a few days and the pay is two weeks away, this may be a case where a credit card can save the day. If you were going to buy the couch anyway and you pay down your credit card as soon as the payday arrives then you have actually saved a lot and did not miss the couch at a reduced price.
As mentioned, there are many credit cards that offer travel insurance if part or all of the trip is paid with the same card. In addition, it may be worthwhile to bring credit cards rather than piles of cash when traveling abroad. When using the credit card in stores abroad it is worth mentioning that it will almost always pay off in local currency. You are often given the choice whether to pay in Norwegian kroner or local currency, and the store cannot demand that you spend Norwegian kroner. Very few outlets can match the conversion rate you get with Visa or Mastercard. Even when you shop in Sweden, it is mostly worthwhile to choose Swedish kroner at the payment terminal rather than Norwegian.
It may also be safer to use credit cards both abroad and online purchases. If there is something wrong with the payment or the purchase itself, you can stop the payment. The credit card also has legal protection through the Credit Purchase Act, so it’s safer if you were so unlucky to be scammed.
Practically, you should always carry at least two cards if something happens to one or more of them. Then you should also place cards in different places so if you lose your wallet you will still have the opportunity to pay for you. Understand the discounts and fees the different cards have so you can customize usage to maximize savings and not have extra expenses. If you want to read more credit card articles you can find it here.Harry Potter can also make the application process easier if you want to apply for credit cards, all are 100% free. You can apply here .