Today, a credit card is a must-have, so if you do not already own a credit card, you should contact your bank in the near future. As a minimum, you should understand what a credit card is and what benefits it offers before you write it off as an option.
What is a credit card?
You are probably already aware that a credit card is a form of payment card, but how does this payment card differ from other payment cards?
A credit card is a payment card where the money is not deducted from your card immediately as you have made a purchase. Instead, you have credit for a few days before the money is deducted. In this connection, it will be very different when the money is deducted, as it depends on your individual agreement with the card issuer. For example, you have up to 45 days of credit with a Mastercard from Santander.
A credit card is a credit card. This means that the money is not deducted immediately and that you may risk spending more money than you have.
On a Mastercard from Santander, your purchases are calculated every month on the 15th of the month. The amounts due shall then be paid on the 1st of the following month. If you borrow the money (if you do not have a positive amount in your account), interest will be calculated from the 1st of the month following the statement. If you spend money just after a statement, then you will have a full month before the next statement. You have 45 days of credit on this purchase. If you spend money just before a statement, then this amount will be included in the statement. You only have 15 days of credit on this purchase.
A credit card is a payment card where the money is not deducted from your card immediately.
Unlike a credit card, you will not receive this credit on a debit card. With a debit card, the money will be deducted from your account immediately. There is, therefore, no credit on the purchase. If you have the option of overdraft on your account, thus credit in the bank does not affect whether it is called a credit card or debit card.
When we mention credit cards, it is also important to mention cash credit. Often credit and credit cards are linked together. With the credit card, you can pay for goods and thus use your credit if there is no money already in the account. However, you may have a credit card without having a bank overdraft facility. You can also have a bank overdraft at the bank, but without getting credit on the purchase. The money will be deducted from your account immediately, and interest will be calculated immediately on your bank account.
Advantages and disadvantages of credit cards
There are pros and cons of everything – including credit cards. However, do not be scared of the few disadvantages that are present, but it is, of course, important that you know about the disadvantages present.
- You get credit (you can in principle use money that you do not have – like a loan)
- You can use it all over the world (pay with it at restaurants etc.)
- You can enjoy different discount arrangements (depends on the agreement)
- Travel insurance may be included (depends on the agreement)
- The security is high (the new credit cards have built-in microchips)
- In some cases, you must pay high fees
- You may find it difficult to keep track of your expenses (as the money will not be deducted immediately)
You have now been introduced because there are both advantages and disadvantages of credit cards. It is up to you to assess the pros and cons of the highest weight in your overall assessment.
It is also important to note that the advantages and disadvantages can vary from credit card to credit card. You can not assume that all credit cards are the same as it is far from the case.
Who can get a credit card?
The vast majority of Danes can be issued with a credit card, since you are just 18 years old and, moreover, creditworthy. In other words, you have the opportunity to get a credit card if you are an author and you are in control of your finances.
If you are registered in the RKI and/or Debt Register, you can not get a credit card as a starting point. You can always try to submit an application, but it is doubtful that your application will be approved if you are registered as a bad payer in one of the aforementioned registers.
If you are under 18, you can contact your bank in order to receive a debit card or international debit card. It is important to note that the child’s parents must give consent if the child is between 13 and 15 years old.
How do I apply for a credit card?
If you make a decision that you need a credit card, please contact your bank. You also have the opportunity to contact one of the many online credit card providers that may also be helpful- great opporutnities.
There are now a lot of providers who issue credit cards so you will not feel limited by the possibilities. You typically need to enter the following information when you need to apply for a credit card:
- Personal Information (Name, Social Security, Contact Information, etc.)
- Economic conditions (employment, monthly income, etc.)
It’s easiest to apply for a credit card online, where you can fill in and submit your application in less than ten minutes. You must be aware that you may be asked to attach documentation in the form of payrolls, etc.
The clever consumer makes sure to read all terms and conditions before confirming and signing his application. In particular, it is a good idea to take into consideration the prices and fees in this process.
You can send your application via your computer, tablet or smartphone – depending on what you have right at hand.
Get a credit card if you have a tight economy
It is by far a good taste if you find it attractive to have a credit card or not. Nevertheless, there are some people who are happier for credit cards than others. The mentioned payment card will be particularly relevant to you who have a tight economy.
The biggest advantage of a credit card is that the money will not be deducted immediately. It will benefit you in many different situations, for example. do not have the money to cover unforeseen expenses.
It may be expensive to raise consumer loans, so it is fortunate that there is an alternative in the form of a credit card. However, remember to read terms and conditions. The most expensive credit cards are significantly more expensive than the cheapest consumer loans, while the most expensive consumer loans are also significantly more expensive than the cheapest credit cards. It is therefore important to find the best credit card for you and the best consumer loan for you, and then make a comparison to find out what is best paid.
Buy now and pay later is an option with the popular credit cards that find a way to more and more purses at home. There may be pros and cons of postponing payments, but it is nevertheless strange that the opportunity is present.
It is a great responsibility to have a credit card, so you should have a clear idea of what it means to use a credit card before you do further. There are many Danes who enjoy credit cards, but unfortunately, not everyone who is in charge of this type of payment card.
Take your credit card on your future international travels
It is not advisable to bring a debit card only if you plan to travel abroad. There is great security associated with a credit card, as you as a consumer have the opportunity to react before the money is raised in your account. In other words, it is much easier to prevent fraud with a credit card compared with a debit card.
Most debit cards have a relatively low amount of money, which can be a problem when there is money for both airline tickets, hotel accommodation, car rental, restaurant visits and more. You will not experience this problem with a credit card that acts as a means of payment in the vast majority of countries.
What should I do if my credit card is abused?
The credit card is one of the time’s most secure payment cards, but unfortunately, it does not mean that the risk of misuse of its credit card is not present. You must, of course, take care of your credit card, but should the accident still be out, you should do the following:
- Clear your credit card immediately (blocking via online banking is typically an option)
- Contact your bank and become wiser about the extent of abuse
- Submit an objection (and wait for a response from the bank)
It is alpha and omega that you respond as quickly as possible as your loss will not necessarily be covered if you do not respond within a reasonable time.