BUSINESS

Getting a Kredittkort (Credit Card) In Norway

A lot of the ways that we do things have changed tremendously when compared to how they were done in the past and still, they keep changing thanks to science and technology. The systems in operation today have also greatly evolved and despite how you may feel about it, life is generally easier than it was say, fifty years ago.

Now, we live in the digital era where everything is digitized. Where challenges that would have taken at least a thirty-minute trip to a bank plus the signing of some papers can now be sorted out by simply dialing some numbers (codes) on your mobile phone. So yeah, life is generally easier today than it was in previous times.

Another offshoot of the digitization move in our world today is that it is no longer necessary to carry cash around in other to make purchases. These things can now be done with credit cards. Though operating on basically the same principles, there might be differences in how some things are handled in certain countries. That being said, the Norwegian credit card system is worth examining.

What Are Credit Cards?

This is a card usually made of metal or plastic issued by a financial institution to a customer with which the customer pays for goods and services and which the payments are charged on the customer’s account by the financial institution. The financial institution will usually on a later date deduct the accrued amount plus the relevant interests from the account of the customer.

The most important fact to know here is that payments made from a credit card are like loans that have to be paid back subsequently. You can read more on this here.

How Do Credit Cards Work?

As earlier stated, they are used to pay bills and make purchases. When you do this, your details, and the details of the transaction that you are about to make are sent to the financial institution (usually a bank) that you are their customer through the credit card network. Upon analyzing your details, they either decline or approve the transaction.

Being that credit card payments are a loan; you might have to pay interest especially if you do not pay off your bill for the month. Generally, interests are to be charged monthly and not yearly.

Also, it is important to note that there is a limit to what can be spent on the credit card. Once you get to that limit, you will not be able to make any more payments from it. Your credit limit is determined by various factors some of these determinants are:

  • The credit card type that you run
  • Any debts that you might have
  • Your payment record
  • Your income status and ability to pay
  • Your credit score

Why Get A Credit Card

The general perception among many is that getting a credit card is a one-way ticket to being in great debt and so, many are advised against getting it. Such perspectives on this issue are not necessarily wrong because many people use this device irresponsibly forgetting that the money will have to be paid back. However, proper use and management of your spending habits will show that getting this card is actually a prudent financial move and has various benefits some of which are:

Initial Bonuses

There is always an initial bonus that is given when you get a new credit card. Again, the bonuses given for those applicants that have a good credit history can be quite high (up to a hundred and fifty dollars in some instances). Aside from this, there are usually other incentives that are given to applicants like reward points, merchandise, gift cards and so on.

Cash Rebates

This practice has been on for quite a while in places like the United States and is now a very popular practice in Norway and the world over. It is generally known as cash back and is a practice where one percent of your spending or purchases are rebated back to you. Today, the practice has matured, some even offer more than three percent rebates to you depending on what you have or are purchasing.

Reward Points

To encourage its usage, credit cards are set up in such a way that its users can earn points for every amount spent. In this set up, various categories of expenditure using the card will result in various bonus points, some higher than the others. When the points earned reach a certain level, the points are redeemed for various rewards including gift cards, travels, certain outings, or free merchandise.

It Is Safe

Another advantage to using credit cards is that it is generally safe as it becomes easier to not lose money due to fraud. If anything, it even prevents it because, in the case of a loss, all you have to do is notify the credit card company of the occurrence. Once you do this, you will not have to pay for any expenses that the thief or fraudster made from your account.

Credit Cards in Norway

The country of Norway is a beautiful and rich European country known for its Viking history, the Norwegian salmon, and the winter Olympics. It also has a great educational system and great tourist sites worth visiting. The reason for making all the above statements is to make the point that there are several reasons why you should and could visit the country.

Now that you are in the country or planning to visit it, you also have to sort out certain details about your stay here. This is especially as it concerns your mode of making financial expenses in the country. The point is, getting a credit card will generally serve you well.

Eurocard, American Express, Diners Club, MasterCard and Visa are all accepted in the country so, if you already have any of the above listed cards, you are good to go. However, if you do not have any of these or just want to get a new one, here is what you need to know:

  • The first thing to know is that to qualify, you must have resided in the country for at least a year.
  • Secondly, you need to have a Norwegian bank account into which money is paid regularly.
  • Thirdly, you must have a proof of a place of full-time employment or a source of income and proof of your creditworthiness.
  • You also should be able to show that you pay your bills (the bills of all the services you enjoy such as utilities) on time.
  • You would be required to show a full year’s tax return at the least.

In practice though, you have to understand that it would usually take at least two years before you can use a credit card in the country. When you finally get your card, be sure to protect your  kredittkortinfo (credit card info) carefully. You do not want it to fall into the hands of fraudsters because they can wreak havoc on your finances if they get them.

Conclusion

There are alternatives to carrying cash about in the world today. These alternatives have their various advantages and reasons why you should adopt them.

However, one that seems to have a universal appeal is the credit card even in Norway. Aside, from the indigenous issuing companies, a lot of credit card company services from other countries are very well accepted here and where you decide to make use of the indigenous companies, their services are topnotch.

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