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Detailed insights into the Norwegian Credit Cards and their usability

Other people use cash or other methods but the smart individuals use credit cards- sounds an amazing quip, yeah? So we all admit that in just a few decades, the people world over have drastically changed the way they do things, their perceptions and aspirations. The kind of change experienced in globalization, market integrations, immigrations, technological evolution and many more can just be summarized as a birth of a new human era. We no longer go to shops all the time but instead buy online; no more cash-just swiping and inserting cards. It’s a whole new world.

Seemingly those who lived through the early 2000s or 1990s still find it kind of confusing how fast things have changed. People don’t need to camp at the banking hall anymore but just turn to online banks and do their stuff from A to Z there. Likewise, a few clicks online will see to it that you get an instant loan and sort out whatever problems it may be that you have. The world is on steroids and we must all keep pace. Keep pace is the word and when visiting Norway where transactions are no longer manual but digital, credit cards must top your list of key priority. 

Everyone can agree that technological advancements have been phenomenal in transforming how financial transactions happen. Not only has it made things easy and convenient but also secure. No more walking across streets with bunches of cash stashed in a briefcase or gunny bag. Today, people marvel at  the common card payment methods. More businesses have evolved with the system and now prefer card payments such as credit cards. So, it’s not surprising that Norway has also taken to these trends. 

Credit card use is commonplace in Norway 

Norway is a developed country with only the most advanced technological infrastructure in the world. Using a credit card in the country is thus as safe as they come. If this is your first time getting a credit card then you should know that it is a huge milestone. You will have to adjust your payment and spending habits too when it comes to using your new credit card. 

You have probably done your research and know a thing or two about how credit cards work. If not, then don’t worry because we got your back. Our blog focuses on the credit card environment in Norway. You will find a lot of useful information that will make it easier to make a decision on getting a credit card. 

Using a credit card can be convenient and secure as long as you use it responsibly. Knowing a thing or two about credit card responsibility will help to achieve this goal. So, stay tuned to the articles on this blog for the latest credit information in this country. Also, remember that the devil is always in the details. 

By understanding how Norwegian credit cards work, you will be able to save money. Assuming this is your first priority given that the economy is still recovering from the COVID-19 pandemic. Subsequently, you will be able to build a good credit rating and have access to more financial opportunities. 

Even as you think about getting a credit card, you should remember that it’s a form of loan. The credit card company will expect you to pay your bills in full at the end of the month. Credit cards also come with other charges depending on your provider. However, first let’s see how credit cards work in Norway. 

How Credit Cards Work in Norway 

One thing you’ll love about credit cards is their universality. They are used everywhere in the world, for example when you want to buy health supplements that you can find at, and so they have a uniform usage concept. In almost every way, a credit card works as a short-term loan. They allow you to purchase goods and services now and pay for them later. This implies that the credit card company pays for your purchases from their own pockets, while you get to pay them back later. 

Credit repayment period

Another key credit card feature is that they have a repayment period. Most credit card companies in Norway will send you a statement at the end of the month. So, you will be expected to repay on a monthly basis. Remember that the difference between paying interest and not paying one will depend on how much you repay. 

Credit card providers will allow you to carry balances from other months forward. However, there is a catch. You will be expected to pay an exorbitant interest on the entire amount you owed at the end of the month. So, it’s a good idea to always repay your credit card bills at the end of the month. You can save more costs this way and avoid a bad credit rating

Credit card monthly limit

Further, credit cards come with a monthly limit which is set by the credit card company. They base their limit decision on many factors including your credit history. This means that you can get a higher monthly limit if you have a good credit rating. It might also be determined by your income among other things. You can only spend as much as your credit card limit allows each month. 

Avoid bad credit rating like a Plague

It is important to keep in mind that exhausting or maxing out your credit card can contribute to a bad credit rating. The more purchases you charge to your credit card, the less your credit becomes. You also free up more credit every month by paying your credit card bills. So, if you repay in full, you get more credit. There is a minimum repayment that your provider will tell you about when you decide to get a credit card. 

What is a Credit Card Statement?  

A credit card statement is a document that is sent to a credit card user after an agreed period. This period is often after one month unless under special circumstances. Credit card statements come to users from their providers at the end of every month. Credit card statements include information on all credit card activity including balance, minimum payment, and due date. 

The card statements are usually customized by each provider depending on their policies. However, a standard credit card statement should include certain important information. Every statement should indicate how much is still available on a card. This will help you to determine how much you should pay the provider. 

Similarly, credit card statements also detail the credit limit that the user can access on a monthly basis. This is usually based on the pre-agreed limit when you sign up for a credit card. However, the amount at the end of the month will depend on how many purchases you charged to your credit card. 

The credit card statement will also include a list of every purchase you made during a given month. Some cards will even categorize the purchases according to the vendors. This makes it easy to keep track of your spending. So, it can be a good tool for managing your finances and staying ahead of them. 

Finally, a credit card statement will also indicate the least amount the provider expects you to pay. However, each provider usually has a grace period where no interest will be charged on your credit card. You should always repay everything during this period to avoid more debts and bad credit. 

The grace period can be anything between twenty to thirty days. The interest is based on your card’s annual percentage rate (APR). The APR also affects any fees the card charges each year.

How to Use your Credit Card(s) in Norway

Using a credit card in Norway is fairly straightforward and simple. It is probably why most vendors prefer this mode of payment. By inserting your card in a chip reader, you can pay for your purchases at any store that accepts credit cards. Similarly, you can pay for them by simply swiping your credit card at the store’s checkout. 

During the COVID-19 pandemic, people were encouraged to use contactless payment methods. This trend has continued in many stores across Norway even today. The good news is that your credit card also allows you to make such payments. All you have to do is to add to digital wallets apps. 

Online shopping is a favourite for many people because of the convenience that it comes with. Here too, credit card payments can still come in handy. All you have to do is to provide a little details about your credit card. For instance, most sites will need the credit card number, expiration date and its CVV security code

The CVV security code will in most cases be printed at the back of your credit card. As soon as you make a credit card payment, the merchant, credit Card Company, and card network will authorize it. The authorization is done electronically and simultaneously so it won’t take much of your time. 

Credit card payments can be an effective way of boosting your credit score. However, it should be done responsibly and carefully. For instance, don’t go out of your way to buy things you wouldn’t normally buy. You should also keep the fees and interests that come with credit cards in mind with each purchase. However, you have to be careful not to accrue any fees or interests while doing this. 

Useful Norwegian Credit Card Tips 

If you use your credit card the right way, it can be a useful tool for making large purchases. Remember that credit cards also come with different benefits and rewards that will help you save a couple of bucks here and there. However, you should not compromise your spending habits to suit your credit card. 

You should always go for a credit card that will let you maintain your regular spending habits while also helping you earn money. This should be easy since there are many credit card providers in Norway. So, you will be able to choose a provider and a service that best suits your needs. 

The competitive nature of the Norwegian credit card market has forced most providers to develop the most innovative products for their customers. So, shopping around for the best provider should be your first stop before selecting one. Also, it’s important to prioritize your needs and your budget when selecting a provider. 

Providers will try to entice you with as many rewards as possible. Some will also set a high monthly limit which might entice you too. However, remember the devil is in the details. The charges that come with the card might be more than the rewards. So, you might end up paying more than you are gaining. Here are a few things to remember about credit cards in Norway. 

The Best Credit Cards aren’t for Beginners

It’s normal or rather human to want only the best for yourself. This is also true when it comes to credit cards. However, you should remember that the more you use your credit card the better the credit card deals become. So, for your first credit card, don’t expect to find the best credit card in the market.

This does not mean that you won’t be able to get a good one. You can still come pretty close with adequate research. However, with time, you will be able to qualify for a card with rich rewards and perks, big sign-up bonuses or long 0% interest periods. Such cards are usually preserved for those who have an outstanding credit score. The best you can do is to continue working on building a good credit score. 

Similarly, a long credit history will go a long way to earning you the best credit card in the market. So you have to be patient and careful to attain these heights. However, you should remember that your income will also dictate the credit card that you qualify for. Though even with a regular income base and a good job you still might not qualify for these cards. 

This must be very disappointing but it’s the sad truth. So, for your first credit card, start small. Go for a product that focuses on individuals with limited or no credit history. With adequate research, you should be able to find a card with decent rewards and no annual fees. The articles on this blog will have more detailed information on this. 

It’s Easier to get a Credit Card with a Security Deposit 

Most Norwegian credit card companies will not issue a credit card to individuals with no credit history. So, if you are one of these people then your best bet is to find a card that has a security deposit. Secured credit cards are way easier to get if you are a foreigner in Norway or have no tangible credit history.

Similarly, secured credit cards can also be accessible to those who have a bad credit history or lower score. To get such a card, the provider will ask you to pay an initial cash deposit. The deposit acts as the security for your credit card loan. It also determines your credit limit since it will be treated as your credit limit.

You should note that each credit card company will have different minimum security deposit requirements. So, you can find out from their website before signing up to see if it aligns with your budget. It’s not all bad news though because you can deposit more than the minimum if you want a higher credit limit. 

The disadvantage of secured credit cards is that you risk losing your deposit. Most companies will not give your deposit back if you fall behind on payment. So, it’s a good idea to make timely repayments and spend well below your card’s limit. With this, it shouldn’t be long before you have established a good credit history. 

The time will depend greatly on your provider though it will likely take a few months. Subsequently, the provider might decide to offer you an unsecured credit card. So, it will be all worth it in the end. And the better news is that the credit card provider will give you back your security deposit. 

However, don’t confuse a secured credit card with a prepaid debit card. With a debit card, you add money onto the card and your expenditure is subtracted from the balance. Similarly, a debit card will not affect your credit while a credit card does. You also have to pay credit card bills at the end of the month unlike debit cards.  

A credit Card can either build your Credit or Ruin it

You should always remember that a credit card is not the only way to build your credit. You can also do this by paying your bills such as utility bills on time. So, don’t get a credit card just to build your credit. A credit card can also ruin your credit in Norway if you fail to use it responsibly. Knowledge is power so find out as much as you can about using credit cards responsibly from our articles. 

So, whether or not a credit card builds or ruins your credit will depend on how you use it. Keep in mind that credit card providers report your credit card activities to credit bureaus on a monthly basis.  They will include your payments and how much of your available credit you use each month. Hence, if you fail to pay your credit card bills on time, it will be included in these reports. 

Always remember to make monthly payments and avoid maxing out the card so that it doesn’t reflect negatively on your credit. Paying in full and staying way below your credit limit will lead to a good credit rating. Some experts indicate that it’s best to keep your balance below 30% of your available credit every time. 

Always know the Rates and Fees before applying for a Credit card in Norway

Credit card providers always disclose interest rates and fees publicly on their websites. So, you can take note and compare them for each provider before applying for a credit card. The first fee to look out for is the annual fee since you will have to pay it every year. Similarly, you should check out the APR, or annual percentage rates. 

APR will determine how much interest you will pay if you carry forward a credit card balance to the next month. You should find out if the provider charges a different rate on varying balance types. Balance type examples include purchases, balance transfers (debts moved to the card from other accounts) and cash advances (cash withdrawn with the card, usually at an ATM). 

It also pays to find out if your provider is among the few that have penalty APRs that are charged following a late payment. Another key feature is the foreign transaction fees, or fees charged when making purchases outside Norway. You will find that most providers charge 3% of the amount charged.

However, I would not recommend a card that charges foreign transaction fees. There are many other providers who don’t charge so you should opt for them instead. Finally, you should find out if your provider charges any late fees. Some will charge you for delaying your payment by a day. 

How to avoid Credit Card Fees and Interest 

Even as a beginner, you can still avoid credit card fees and interests. You can start by going for cards that don’t have annual fees. You should also avoid late fees by paying your bills on time. If you have a card with foreign transaction fees, you should avoid using your card outside the country or go for a provider that doesn’t have one. 

 Similarly, you can avoid balance transfer and cash advance charges by avoiding this type of transaction. Avoid credit card interests by always paying your bills on time and in full. Never spend any amount that you are unable to pay back at the end of the month. You can do this by tracking your spending and using other payment methods.