Credit cards are becoming increasingly popular, and banks are increasingly offering innovative opportunities and benefits with these cards. Therefore, of course, the amount of consumer questions and wonders also increases, so in this article we will address 15 of the most frequently asked questions related to credit cards.
What does it cost to use a credit card?
In principle, most Norwegian cards will be completely free to use. The exception is in some places abroad, as well as on some websites, but in principle the bank does not charge any fees when using a credit card to shop in stores here in Norway.
What fees do such cards have?
It asks a little about which bank you choose, but most often there will be no usage fee or annual fee. Usually, the only fees that occur are a percentage fee on cash withdrawals at ATMs. Some credit cards also have free cash withdrawals.
What does the effective interest rate mean?
The effective interest rate gives you a picture of how much you will have to pay in interest and fees when using a credit card. Both the nominal interest rate, plus fees, are included in this percentage, giving you a nice clue as to how much extra expense you’re going to get.
What does interest-free payment deferral mean?
Interest-free payment deferral is something that most cards have. This simply means that you do not pay interest on the amounts you have used until after a certain period. For most Norwegian credit cards, this period extends up to 50 days, which in practice means that you have “free use” of the credit card for almost two months.
What is cashback?
Cashback is something more and more Norwegian banks are choosing to introduce on their credit cards, and as the name reads, it simply means that you will get money back. This allows banks to use your credit card more actively, which is not a bad idea, as you can save quite a bit of cashback money.
What is a gas card?
A gasoline card is really a regular credit card, but where you get a bonus in the form of cashback on fuel. Here you can save as much as 60 to 80 øre per liter of gasoline you fill, just by using the credit card rather than the bank card when you pay for refueling.
What is the credit limit?
In Norway, the typical credit limit on a credit card will be around a maximum of NOK 100,000, with some going higher while others going lower. As a rule, you will not receive a maximum credit limit until you have been a customer and owner of the credit card for a while.
What is the interest rate?
The interest rate on Norwegian credit cards varies from bank to bank. The lowest interest rate we have seen is down to 13 per cent, while the highest is well over 35 per cent. However, most banks offer cards with an interest rate of between 20 and 25 percent.
Can I apply for a credit card?
Provided you are at least 18 years old, you can apply for a credit card.
You can apply even if you are a student and have low income, and as long as you do not have a payment note, you will probably be granted the credit card application.
Do you get travel insurance?
A good reason to use your credit card when vacationing is that it has travel insurance included. But be aware, because not all cards have this deleted at all, and we recommend that you read the insurance terms before you leave.
When will the card come?
If you apply for a credit card online and sign the application with easy ID, you can expect to have the credit card in the mail within 6-7 business days. If you cannot use easy ID then you must count on several weeks of waiting time.
Can I get a credit card with a payment note?
In short, one cannot get a credit card with a payment note. Almost all Norwegian banks will reject applications from someone who has a payment note (s) or active collection cases.
What is the difference between VISA / MasterCard?
In practice, choosing a credit card with VISA or MasterCard makes no difference. There are two different companies, but no matter which provider yo u have, you will have access to the same services and payment options. More info on VISA and Mastercard.
What if I lose my card?
Then it is extremely important that you block your card immediately. Credit cards are more frequently exposed to fraud than regular credit cards, so if it happens then it is extremely important that you contact your bank as soon as possible.
Should I use the card in e-commerce?
Yes – a credit card should always be preferred when shopping online. This is because you are then protected by the Credit Purchase Act, which gives you far greater rights in the event of any trade problems. Look here for the best credit card