Chances are that you’ve probably heard of Kredittkort before. In fact, we’d venture to guess that if you’re reading this, you’ve likely had one at some point – or you’re looking for tips and tricks on how to pick your first one.
Either way, you’re here because you’d like to learn more about them and how to get them for a reasonable price.
Now, they’re not exactly something that we can buy in a store. So, when we say “cheap” in this context, it’s referring to a low sign-up fee, security deposit, or interest rate. The question is, then, how we should go about picking one that will suit our needs!
Costs Involved in Getting a Credit Card
Before we get started on picking the right one to suit your needs, let’s first discuss what the costs are for getting a credit card. A lot of people seem to have a misconception that it’s free along the way, but often, this isn’t true. Arguably, the fees involved will depend largely on your credit score. Allow us to explain!
Rarely, there will be an application fee. This is much more common in other types of loans like a mortgage or rental agreement, so it’s likely not something that you’ll need to worry about. However, there are specific types of cards known as “secured” ones that will require some money up front.
This is known as the security deposit, and it often serves as the total amount that you can spend on the card as well. While all of them have a limit on how much you can spend, the secured ones tend to utilize the amount of the deposit as your credit limit.
These are tailored towards first-time credit card holders and students in college, for the most part, and it’s generally an amount like two-hundred and fifty dollars rather than a huge figure.
Are there other fees to be aware of? Well, even when you’re not getting a secure card, some of the ones with better benefits will have an annual fee. The fee is there in lieu of requiring a high credit score, at least sometimes.
Applying for Credit Cards
When applying for credit cards, there’s a fair amount involved. Although it might not seem like something overly relevant or important to think about, you might be surprised by how much lenders want to know about their applicants. It doesn’t hurt to prepare a bit before you fill out some applications.
Additionally, keep in mind that the more that you apply for, the bigger the hit your credit score takes. You see, each time that you apply, a credit check is done on your account. There are soft checks and hard checks. The hard checks lower your overall score by a point or two.
In small numbers, this is hardly a big deal. Just something to think about if you’re trying to go for ten credit cards at once. It can have a pretty big impact on your score that will take a while to fade.
What Makes a Card “Cheap” Versus “Expensive”?
Now, you may still be wondering about what the billigste credit card looks like, and that’s certainly understandable. With that said, let’s delve into what makes one cheaper than others. The biggest thing is probably lacking a fee for applying or signing up for the card.
Of course, that’s far from the only aspect. Low interest rates are quite a big deal as well. Interestingly, in Norway, most credit cards don’t charge interest on consumer goods and services.
So, that could very well not be something you need to concern yourself with. Keep an eye on it, though, and always double check if the one that you’re interested in does charge interest or not.
Expensive cards, on the other hand, will have high interest rates and low rewards. Unfortunately, they also tend to be easier to qualify for. So, a lot of choosing the right card for us is about striking a balance between the best terms versus what we actually qualify for with our credit history and overall finances.
Are Credit Cards Safe and Worthwhile?
The final point that we’d like to address today is whether or not it’s safe to have a credit card. Specifically, we want to examine it from a financial standpoint. Are they worth the risk?
It’s not exactly a secret that we’re surrounded by warnings about them, after all. They’re both an excellent way to achieve financial freedom according to pop culture and a way to plunge yourself into financial ruin. As you can probably imagine, the answer is in fact somewhere in between those two extremes.
In fact, it will really depend on what we do as the cardholder. Obviously, if we just spend a thousand dollars with our credit card right off the bat with no regard as to how we’ll pay that back, then it’s not exactly something beneficial. However, when we use them responsibly, we can absolutely improve our credit scores over time and make it into something positive in our lives!
Really, it’s just something that’s a bit difficult to qualify. The answer to whether or not a credit card is worth it for you is going to be pretty personal. You’ll probably need to think on it for a while, just to make sure that you’ve got all the facts that you need before you take the plunge.
Consider speaking to a financial advisor if you have that type of resource available to you and readily at your disposal. If not, there are a lot of websites online that can help you compare the various credit cards.
When you use them, you can plug in your details as well as what sort of attributes that you’d like to compare, and this can speed things up quite a bit.
You may even be able to find a better deal that way, so it doesn’t hurt to check them out.