How to Choose the Right Credit Card in Your Country
Credit cards are useful and convenient. If you know how to use them properly, they can be your best buddies.
However, how do you choose which credit card is right for you?
Let’s answer that question.
What will you use the card for?
Before you choose a credit card, ask yourself the main reasons why you need the card.
- Low-interest cards are best if you’ll use the card for general spending
- For business spending, search for more card options
If you’re settled and living in Norway, getting a Norwegian credit card will be easy, as long as you meet the minimum criteria. The same is true for other countries.
Will you carry a balance?
Creditors and bankers generally put cardholders under either of two categories:
- Deadbeats - those who pay their bills in full
- Revolvers - those who often carry a balance
If you plan to be a revolver, choose low-interest cards over cards that offer bonuses and rewards.
What are your spending habits?
Whether you’ll carry a balance or not, it’s important to sit down and examine your spending habits.
Write down every expense you have. Scrutinize how using credit cards will help your finances. And find which type of credit card is the best for your situation.
Here’s an important note: be 100% honest about your spending habits. You don’t want to be a part of credit card debt statistics.
What type of credit card do you want?
Now here’s the part where you’ll decide which type of card is right for you.
Depending on your goals, balance, and spending habits, you may choose from the following types:
Balance Transfer Card
This is best if you want to consolidate your credit card debt. Also, use this to reduce the interest you pay on existing debt.
0% Introductory APR
Use a card with 0% introductory APR, or the interest you pay if you carry a balance, if you want to use the card on a huge purchase that you can’t pay in full right away.
Use this type of credit card to get rewards as a statement credit. This will reduce your monthly bills.
Travel Credit Card
As the name suggests, this is perfect when you travel often. Use this to earn airline miles or points you can use at hotels.
Business Credit Card
Business credit cards are best if you intend to make purchases for your company.
Secured Credit Card
A secured credit card is great for establishing your credit history -- a good one, we hope -- after negative events like bankruptcies.
Student Credit Card
As the name suggests, this is good if you’re still in school and just starting to build credit.
Are you familiar with the jargon?
You also want to be familiar with the jargon that creditors use as well as the fees you need to pay.
Here are some important terms you need to understand:
- APR - the interest rate to pay when carrying a balance
- Rewards - often equate to 1% to 2% of your spending. Certain purchases give more generous rewards.
- Minimum payments - the minimum amount of your balance you must pay each month
- Sign-up bonus - rewards from the credit card that you get after meeting certain requirements
You might also want to learn about new legislation surrounding credit cards and payments if you plan to use your card in other countries.
Ready to Apply for Your Credit Card?
After you’ve set your goals, studied your spending habits, and determined which type of card is best for you, it’s time to apply for your card.
If you’re applying for cards in other Scandinavian countries, read about their policies carefully. Ask around to find out more information about their card services.