In the present day, possessing credit is about as common as driving a car or owning an apartment. They are a part of our daily lives and something that we use frequently, whether they are used to garnish approval with the banks or put towards the purchase of products like clothes or electronics. To have credit is to have an advantage, one that can be available to almost anyone these days. But the question is, where should you get your credit from, and what companies are the best for you from which to ask for credit?
There is no shortage of credit card companies listed around the world, all too willing to offer customers credit. However, there are a vast number of factors that come into play when asking for it. Things such as interest rates, interest-free credit, interest-free periods, annual percentage rate (APR), effective interest rate (EIR), annual fees, possible rewards, and plenty of other variables. Indeed, for someone new to credit, it can be a lot to take in at first; it may even seem daunting when considering the credit card company that is best for you and your plans. Luckily, this article is here to help, to which we will be looking more into detail about credit along with several different credit cards, and with luck, this will help you find out what card is the best for you.
Understanding Credit and Credit Cards
Before deciding on the credit card for you, it is best to first understand what credit actually is. Credit, to put it simply, is a sort of imaginary line of trust. This trust is what allows you to purchase goods or services with money that you may not readily have available. For credit cards, they are an extension of that trust; specifically, a trust that has given physical form.
As the name implies, cards are usually issued by financial institutions and organizations such as banks. They allow you to basically borrow funds that you may not have at the moment for a purchase. However, it is not a purchase without cost, as when using it you are placed with the burden of paying that purchase back sometime in the future, along with interest. Whether it takes days, months, or years, the money borrowed is expected to be paid back.
Who Distributes Credit Cards?
As stated earlier, there are numerous amounts of companies that distribute credit cards. Such companies include banks, credit unions, and other financial institutions. Some examples of such are major retailers like VISA, Bank of America, Capital One, Bask Bank, etc.
What are the Advantages?
There is no shortage of advantages when it comes to owning a credit card or two. In addition to being able to purchase products you may not have the money for at the time, there are also certain rewards you gain when using them. These rewards can vary depending on the bank or institution you got the card from, but some common examples are things such as discounts, fraud protection, perk rewards for travel, cash back on certain purchases, and more. There is also the benefit of building your credit score, which when high enough can grant you access to even more perks like an increased credit line, approval of loaning money from the bank, or even more credit cards.
How to Get One
Getting a credit card is as simple as filing an application for one. Various retailers for such offer applications to see your candidacy for owning a credit card. However, it should be noted that if you are new to credit in general, meaning you do not have a traceable line of credit, then it may be tougher to get one from a bank. But there are other simpler ways to procure a credit card, such as signing up on someone else’s credit account or getting a secured credit card; the latter of which offers little to no risk to the vendor at all.
The Different Types of Credit Cards
When choosing your credit card, it will ultimately be up to your personal preference and affordability. There is no shortage of choices when first picking up a credit card, but thankfully there are sites that offer insight and help on such topics, such as kredittkortinfo.no/. Here are some of the various credit cards available and what they offer, along with a few other pieces of potentially useful information.
1) SAS AmEx Classic
- Effective interest rate- 30.6%
- Interest-free period- 0
SAS AmEx Classic is a great card for those who are frequent flyers. With unlimited max credit and bonuses for flying, this is a card that can take your expectations and let them soar on high. Though the effective interest rate is higher than most other cards, it is surely one that is worth considering as well.
2) Flexi VISA
- Effective interest rate (EIR)- 24.6%
- Interest-free period- 50 days after purchase
Flexi Visa is listed as one of the best among bonus cards, offering a 4% bonus in one category of your choice every month. It also has a kickback program, with a discount for up to 250 online stores that can reach as high as 15%. If you want to have control over your potential bonuses, consider getting this card.
3) TF Bank Mastercard
- Effective interest rate- 26.69%
- Interest-free period- 43 days after purchase
Mastercard’s TF Bank Mastercard is a fully 100% fee-free credit card. With a Dealpass, you can save up to 30% on discounts on restaurants or hotels, shoes, and online stores, and even clothes. It also has the added benefit of free travel and cancellation insurance.
4) Re:member Gold Mastercard
- Effective interest rate- 22.42%
- Interest-free period- 45 days after purchase
Having the highest credit limit on the market, Re:member Gold Mastercard has a broad range of credit to offer. With a low effective interest of just below 23%, this card is quite generous to its owners when it comes to purchases and credit lines.
One of the greatest things about these credit cards and others is that they have an annual fee of exactly zero.
Having credit is as important to our world’s economy as the number of advantages there are to having one. Though it may seem like a simplistic piece of plastic, it is a piece of plastic that can open a door to a small number of possibilities. Finding the one that is good for you may take some research, but hopefully, this article helps. So, with all this in mind, maybe stop by your nearest bank or financial institution, and consider putting in that application.