Have you lately been thinking about getting a credit card? Hearing other people’s stories about these specific financial instruments can make you think two completely different things. You’ll either fall in love with credit cards and want to get them right away, or you’ll be afraid to start using one, thinking you’ll get in serious debt. Getting excited about this is a far more normal reaction, because there’s no reason to be afraid when you’re using the card responsibly.
Irresponsible usage can, of course, lead to those debts we’ve mentioned above. So, if someone is complaining about being in great debts after having used a credit card, or a few ones, for a while, you can safely assume that the someone has been using this financial tool rather recklessly. Getting rid of the debt people can accumulate this way can turn out to be rather difficult, especially if the interest rates are high, so the better thing to do is always act responsibly and use your card wisely.
Anyway, you can’t start using it wisely if you still aren’t even sure whether you should get one of these financial tools for you. So as to understand whether you should get it, you’ll first want to understand what it specifically is, so that’s another important question that is clearly on your mind about these particular financial instruments. And then, there’s also the fact that you probably don’t really have any idea about how to get the right credit card for you, which is also a significant question.
Those are all significant questions, aren’t they, though? Getting your answers to them will help you get properly acquainted with credit cards, as well as understand whether you should get one of those in the first place. After we’ve helped you out with that, we will proceed towards talking about the actual process of getting the right card for you, which will also be of help and put you on the right track towards obtaining the perfect financial tool. This is how those tools work to begin with.
What Is a Credit Card?
So, hva er et kredittkort, or what is a credit card exactly? It is basically a plastic card that has been issued by a financial service company. A piece of plastic allowing cardholders to borrow funds and use them to pay for goods and for services with those merchants that actually accept cards as a payment solution. Of course, the borrowed money has to be paid back, together with the interest and with any other previously agreed on fees and charges.
The issuer basically creates a revolving account and provides the cardholder with a line of credit that they can use any time they want, borrowing money either to pay those services and goods, or taking cash advances. These cards allow borrowers to build a continuing balance of debt, which will be subject to the interest being charged. Due to the peace of mind and convenience it offers to the holders pretty much any time, these cards have become rather popular in the modern world.
Should You Get One?
Now, you get what these are and how they work. And, you get that the money you’ll borrow using the instruments will have to be repaid, as well as that interest will be charged on it. Completely normal, as nobody is actually willing to give you money without getting anything in return, and the interests are basically how the issuers earn their money. So, since avoiding interest is not possible, you’re probably wondering whether actually getting one of these cards is right for you.
Sure, you’re not wondering that due to the interest rates alone, but due to the entire concept of the cards. It’s not that you don’t understand their value, because they are certainly highly valued and beneficial. It’s just that, you may not know whether it is right for you specifically. Well, if you’re looking for the short answer, here it is. Yes, I believe you should get a credit card and it could be quite right for you, because it comes with numerous benefits that you’ll absolutely find rather useful.
Why?
Not looking for the short answer, though, are you? Instead, you want to get a clearer idea on how these cards can be beneficial, and then decide all for yourself whether you want to get one or not. That’s the smart thing to do, of course, because making any kinds of reckless decisions about this is not a good idea, as it could lead to mistakes you’ll later regret. Anyway, since you’re ready to get informed, let’s get you informed. Why is it that you should think more seriously about getting a credit card?
- They Are Universally Accepted
Credit cards are universally accepted, and that is definitely quite a huge advantage, especially for people planning on traveling often. Using these financial tools abroad, you won’t have to pay any commission, and you’ll get the best exchange rate regardless of the currency of the country you’re visiting. Plus, carrying plastic is safer than carrying cash, so that’s another great reason to use them when traveling.
- They Protect Consumers Against Fraud
The level of fraud protection these offer is certainly one of their biggest benefits. Basically, if your card is stolen, or if someone finds your information online or in any other way, the money they’ll be spending won’t exactly be yours. Immediately upon notifying the issuer of the theft, they’ll put a hold on the card, as well as start investigating, and you won’t be held liable for any fraudulent purchases that the thief might have made in the meantime. Pretty neat, isn’t it?
- Some Come With Welcome Bonuses
Depending on the card you choose, it may come with certain welcome bonuses. Those can include miles and points you’ll be able to redeem for hotel stays or air travel, or you could even get a cash back bonus. Of course, so as to qualify for the bonus, you’ll usually be required to spend a specific amount in a specific period of time, and the amount you’ll need to spend differs from one issuer to another.
- And Then There Are Various Reward Programs Offered
Reward programs are another great perk of these financial instruments. Naturally, not all of them will offer the same programs, so checking out various cards and their rewards can help you choose the best one for you. What you want to do is find a reward program that fits in with your current spending habits, that is, the one that will work best for you, allowing you to get cash back, to earn miles and traveling points, and similar rewards.
- Some Offer Purchase Protection
Once you learn more about credit cards in general, perhaps with the help of kredittkortinfo.no/hva-er-kredittkort/ or other useful sources, you’ll also realize that some of them offer purchase protection. Another amazing benefit to consider. Basically, this means that, if you buy a product and realize it is faulty afterwards, you’ll get to return it and get the amount of the purchase back. Plus, some cards can also cover you if the product gets stolen, and you could get extended warranties on certain products by using these financial tools to pay for them.
- They Help You Build Credit
So as to be able to get a loan at any point in time, you’ll need to have a good credit score. How do you build it, though? With a credit card, of course. So, this is perhaps one of the main reasons to start using these financial instruments. And to start using them responsibly.
- And Track Your Spending More Easily
If you don’t know where your money is going and if it is difficult for you to keep track of your spending when using cash, for example, you’ll definitely also benefit from these tools. Why? Because they can help track your spending more easily, as your purchases will all be recorded with all the relevant information, allowing you to easily keep track of everything.
How to Get the Right One for You?
Figured out you could benefit from one of these cards, and now interested in getting the best one for you as soon as possible? Well, what you’ll need to do is take your time to find that best one, that is, the one that will suit your specific spending habits and your needs perfectly. Thinking about what you want to use the card for and exploring those reward programs and other perks, aiming at identifying which ones you could definitely benefit from, is the first thing to do.
The second thing, naturally, consists of you finding the right issuer. Not all of the companies will have favorable offers to make when it comes to interest rates and other types of fees. So, checking those out and comparing all the info is absolutely important, as it will help you ultimately choose a great issuer that will provide you with a great credit card and at reasonable fees.
Related: 5 Credit Card Mistakes That You Should Avoid at All Costs
