5 Things you must know Before Getting a Kredittkort
Is there a worse feeling than the one when you wanted to buy something but you didn’t have the money? The item is on sale, you know it’s going to be gone in a second when someone else sees it, and you still can’t buy it because the paycheck still hasn’t arrived on your debit card.
You wish there’s a magic wand to make money out of nothing, but this is only possible in the movies or the stories from your favorite books. Moments like these make you wonder what to do and how to find money in times of need.
The answer is really simple actually – you should get a credit card, or as some people call it – the kredittkort. The credit card is going to give you the financial injection in moments when you really want something and you don’t have the money to get it.
If you still don’t have one, then it’s time to apply for it. However, there are some things that you must know before doing it. With power comes responsibilities, and the credit card definitely has a lot of power to change the situation in your favor.
In this article, we’re talking more about the kredittkort and we will explain the things that you must know before applying for one are. Take a look at this list of five points that will show you what you must be aware of when you get it. Follow up and see more about this!
1. Make sure the interest rate is in order
Most credit cards come with a limit that goes under a particular interest rate. This interest rate is usually around 12%. It may be as low as 9% or as high as 15%. Some can charge even more than 20%, and this is a tremendously high interest rate. You don’t want that high amount as it will drain the income to meet the lender’s demands.
Instead, before getting one, you must ask what the interest rate is and see what will be written in the agreement. If the interest rate is too high, you shouldn’t accept the account that they want to open for you in their financial company.
If this happens, then you should quit talking to them and go to another place. Not everyone will offer the same terms. Some will ask for more, while others will demand less. Ask for a billigste kredittkort, or a card with a lower interest rate. If you get around 12%, then you’re in the average ones. If they provide a lower one, then you’re getting a great deal.
2. Don’t spend everything in a heartbeat
When you get the card, don’t rush into the store to spend everything you have. Getting a kredittkort is not getting a card with unlimited ability, but a tool that might be helpful for moments when you truly need it. When you have a moment when money is of utmost importance, that’s when you need to use it.
The card comes with a lot of money on it that you can spend however you want it, but that doesn’t mean you should do it right away. Keep the money where they are and only spend them when there’s an emergency or there’s something you absolutely need.
The reason behind it is that the interest rate will be imposed on every cent you spend on it. If you don’t have to do it, then interest won’t be charged. You should spend your funds first, and only waste the credit card money if you must do it.
3. Pay with a grace period when there’s a need for it
The grace period option is a great one. You should use it whenever you need safe payments. The grace period is used by people who buy a product or receive service and want to be sure that what they get is perfect.
It is also used in moments when you have no funds but you need the product anyway. With it, you let the bank guarantee that you’re good for it, and you’ll only do it after you become ready. A lot of people use this method to be sure that they are getting a top-notch product.
How does this work? Let’s say that you have people building a pool in your yard. It takes months until they finish it, and when it’s done, they ask for the final payment. You’re going to do it with a grace period and the bank guarantees for you.
The pool starts leaking and you need the same team of people to fix it. However, they are nowhere to be found. You ask for someone else to do it, and you keep the money that they are supposed to get for the finished job.
This keeps vendors alert and always ready to come and do the job properly. If they don’t, then they’ll lose a ton of money that you were supposed to pay them. Check the bank’s agreements and see what your rights are in these moments so that you know what to do when needed.
4. Credit cards also have a limit
Mind the fact that credit cards also have a limit and you won’t be almighty when receiving a card. You’re going to get a limited amount that you can’t pass. However, this limit is usually a lot of money, and getting to it means you’re in great debt. See here how to avoid going into debt.
Most cards can go as low as $50,000 and if you breach this border, then you’re in deep trouble. If you reach this limit, it means that you’ll need to both repay the debt and pay off the interest rates coming with it. A standard 12% on $50,000 is a lot of money, so make sure you’re aware of what you’re doing.
5. You still need to repay the debt sooner or later
If you fail to get out of this debt, the bank will put you on the poor credit score list and you’ll lose all your privileges from having a card. It will most likely be blocked, and you’re not going to be using it anytime soon. Instead, you’ll need to take an amount of your income every month to return what you owe.
The bank will most probably sell your account to someone else that will deal with the debt their way. There are financial institutions made for these situations and they are far from respectable as the original issuer of the card. They will literally get on your nerves and force you to repay them, so understand the responsibility behind owning a credit card.
When you apply for a kredittkort or a credit card as you might call it, you’re applying for a piece of plastic that comes with a lot of responsibility. Yes, the benefits are also amazing, but you must be aware of the things that might cause problems for you.
The content above explains the things that you must have in mind when you’re doing this are. Check out what we’ve written, make sure you’re ready to follow these orders and be sure that you’re doing the right thing.