Payment cards

As more and more different types of payment cards have come, it has also become easier to find one that fits exactly what you need. Of course, there is also much that depends on your finances and the better your finances are generally, the more different types of cards you have the opportunity to get your fingers in.

But with so many different solutions and options, it has also become harder and harder to figure out exactly where to go for a new payment card that suits you exactly. Therefore, we have made this article where we dive a little down the world around payment cards. Here you can find out how to select the best card for your needs and perhaps also become wiser on some of the inequalities that you did not know were available to you.

It is even possible to get a payment card that is linked to a loan so you do not have to go to the bank to get it but instead can easily apply for the card online. Then it will not be easier to get the private economy organized. All you need is your easy ID, computer and internet. You do not typically need to find payrolls and bank statements, as various loan providers typically can retrieve these directly from SKAT when you give consent.

What types of payment cards are there today?

Basically, there are two main types of payment cards. One kind is available to just about everyone and is what is called a debit card. What is a debit card? It is a payment card that is directly linked to your bank account. It works completely like cash. When you pay for something with the card, the money is immediately withdrawn or booked in your account. Typically, you can use this card for most forms of payment, except where the card is required to support a credit. This is the case in some cases where the card is registered as an automatic payment method – to make sure that the person who has the money now also receives the money, it is occasionally a requirement that the card is affiliated with a credit so that the recipient may be sure to get his money, despite the fact that there may not be covered on the account.

Basically, however, you can use this card as a means of payment in your daily life, as well as the vast majority of places you can use for automatic payments, such as subscriptions and the like.

Debit cards are typically significantly cheaper than credit cards, as many credit cards are associated with;a kind of annual fee to compensate for the service and security you receive. This means that you can have a debit card attached to a budget account without paying extra, and thereby be able to handle automatic payments directly through the card and save on billing and other payment fees. Typically debit cards are not limited to Denmark, but can also be used abroad. It’s smart if you lose the card during a vacation, as you do not risk a big overdraft on your account if someone should abuse it. For example, if you have a Visa debit card, you can use it virtually worldwide, just as you would with a regular visa card.

The other type of payment card is credit cards. Although both types are often referred to as credit cards – especially abroad – there is a significant difference. For where a debit card requires money in your account, you have the option of making overdrafts with a credit card. Depending on your type of card, the coating can be made in different places. In Denmark, the most common credit card is the classic Dankort. This is linked to a “cash credit”, a form of a passive loan, if you can call it. It works by agreeing between you and your bank (and here it is probably the bank that decides) how much money you may be allowed to “blame” the bank. Then a cash credit will be created, which in principle functions as a loan. For example, if you have a cash credit of $ 50,000, you have the money available on your credit card, even though you may only have 1,000 dollars in your account. If you spend more than you have on the account, the overdraft takes over and goes into minus. One of the advantages of doing this is that you only pay interest when you actually use the credit. It’s a much more flexible solution than having to take up a consumer loan just because you need an extra couple of thousand for the workshop bill or the like.

Basically, a credit card and a credit card give you a lot of freedom financially. Of course, it comes with a price, since you usually pay a little more in interest on a cash credit than on a consumer loan – but it is also not the intention to spend the overdraft on long-term repayments.

If you are not interested in a Dankort, there are also plenty of other different loan companies that can issue you a credit card. It works in exactly the same way as a Dankort, but it’s just something that drives outside the bank. In fact, here you can borrow money online and get it today. If you go for this solution, be aware that there are often many myths and rumors associated with it. One of the things you most likely will often hear is that these credit cards are associated with excessive fees, taxes, and interest. Of course, there are some places where you pay extra in interest than you would do at the bank. But it is not necessarily certain that you will pay extra.

Does the bank or online companies provide the best credits?

As you probably already figured out, it’s not as black and white as the headline here is. As a rule, banks earn money that, after all, they are the largest in the market, versus the more “unofficial” loan companies. This means that they often have some reasonably favorable prices on many of their products – also because people typically collect more things at the bank, such as bank credit, mortgage loans and so forth. On the other hand, it means that the other loan companies are aware that they have to do something about their prices to attract customers. Here, as a rule, we are talking about clean business. The more different providers in a market, the lower the price is most often. This applies to insurance, mobile subscriptions – and yes, also financial services.

Therefore, it’s a good idea to take the time to compare the various options available on the market, because you can actually find some far cheaper rates and costs than you would find at your own bank. As for the other smokers around the online loan companies; that they all want to cheat you, there’s only one thing to say: it’s absolutely untrue. First, the companies behind the cards have no interest in creating insecurity about their brand, and secondly, all these companies are subject to the same strict requirements as other banks, which means that it is extremely difficult to cheat in this industry. Therefore, as a consumer, you can always feel confident in financial affairs – whether in the bank or in online businesses.

However, there is one big advantage when it comes to online businesses that the bank cannot deliver. Not yet, at least. And it’s user-friendliness. With online businesses, you can apply for a credit card at home from the sofa without having to visit the bank and sit in an awkward meeting with your adviser. It also makes it easy to compare the different rates, interest rates, and fees quickly and easily as you can use some of the many different comparison portals you have available as a consumer. In this way, you are sure that you will not get a too expensive credit card and always get the solution that suits you best.

What are debit cards good for?

On the whole, you can use your payment card the same as with traditional cash. However, where you with a payment card have some advantages, it is when it comes to security. There is a reason why we do not go with several thousands of dollars in our pocket. If you were to lose your wallet – or even be assaulted – then your insurance is unlikely to cover a cash amount as they cannot accurately document how much money you have. Here it is often much safer with a credit card, as it is protected by a PIN. So if the accident should be out and you should lose your wallet, then it’s fortunately only you who can use the card – and you can even block it to be even more sure that your money will not be deducted from your account.

 In addition, you can also connect many different services to your payment cards so that they are paid automatically. You can not do that with cash, and with PBS payment, it often costs you a fee, with the payment card being free. By far the majority of places offer subscription payment by debit card, so whether it’s the metro ticket, the phone bill or the like, you can sign up for payment via your debit card, so you’re always sure your bills will be paid on time. Of course, you should be aware of updating payment cards if you get a new card so your bills will still be paid on time.

Many people also use their debit cards abroad – again because you are secured against theft, but also because you do not have to exchange currency. In the past, you had to change currency when you were on vacation, which meant that you had large amounts of cash – either in the hotel room, in the car or the like. It does not necessarily place you want to have the entire travel savings, and it is often a good idea to use a payment card instead. It’s also easier when you come home again. We have everybody tried to change either too little or too much for the holidays and when we get home we will have to change it all back again. It’s cumbersome and it can often be a pleasure.

We hope that this article has helped shed some light on your many possibilities for a payment card and that you are now dressed properly to when you find and find the card that best suits you and your needs. As always, it’s a good idea to make sure that you compare the different maps online so you are sure that the interest rates and fees are where they should be. At the same time, it is also easier and you have more options for several types of loans. If you want to be extra sure that you get the best prices, you can take the different loan papers with you to the bank, and in this way allow them to match the offer. It is far from certain that it can be done, but if it is possible, you are again guaranteed the best price on your credit card.

Credit card

Everything about credit cards

We can not ignore the fact that there are many advantages to using a credit card over other payment cards. A prerequisite is, of course, that you use your credit card responsibly and not just credit card debt for the sake of pleasure. In fact, by committing yourself to your card, you can act completely free of charge with your credit card, while benefiting from the many great benefits and bonuses offered by the card.

However, it is not possible for everyone to get credit cards today, as that depends to a large extent on how your financial situation looks. Below, therefore, we should look into everything about this popular card type, and you can then decide if it suits your specific situation.

How a credit card works in practice

You probably already have an idea of how a credit card works, but if not, we’ll take a closer look below.

A credit card allows you to shop online or physical stores with granted credit. This credit line is agreed between you and your card issuer and, in many ways, works like a direct loan. When you use your credit card to act, you do not have to pay the purchase price immediately. The appropriated credit will instead go to cover the deal.

However, the amount of credit limit you can be granted depends on your bank and, not least, your financial situation, and in order for you to start taking advantage of a credit card loan, you must first and foremost enter into an agreement with your bank or provider. Today there are banks offering only relatively small credit limits, for example up to DKK 20,000, while others are willing to lend the very large amounts.

Although a credit card can be free and free to use for a specific period, it’s important to keep in mind that there are usually always costs involved when using your credit. Most importantly, however, you will always be able to repay the amount due within the agreed period, as you will always be subject to expensive interest rates.

How do I apply for a credit card?

Searching for a credit card today is relatively easy. Really many banks understand that you appreciate convenience above all, and therefore it is not necessarily a requirement that you meet up to physical meetings – or boast a lot of paperwork. This is especially true if you are already an existing customer in your current bank and always pay your bills on time and generally show responsibility for your finances.

Although you can of course order a credit card by filling out an application form through your bank’s physical branch, it’s usually a lot easier to do it online. All you have to do is log in to your online bank and you can see a complete list of all services and products that the bank offers you. The clear advantage here is that you can usually expect to receive responses either immediately or later on the same day, so you should not wait to know if you are entitled to a credit card.

However, many today choose to apply for a credit card at banks and banks with which they are not customers. This is because you can no longer assume that your own bank will always offer you the best deal. However, if you are looking for another bank, please be aware that they are more likely to first request a physical meeting with you to evaluate your wishes and your overall finances. Some banks are also unwilling to issue you a credit card if they can see that you already belong to another bank.

Requirements to receive a credit card today

Today, not everyone can get credit cards. Of course, the bank or the provider is interested in earning money on you, and therefore, they will first and foremost ensure that there is no particular risk of your debt being rendered. This means that they will first and foremost make a credit check of you and your financial situation and sometimes it may require you to meet up with a personal meeting with your bank adviser. However, some providers are also able to grant you the card online, after which you will simply receive it in the mail.

It is not uncommon for banks to set requirements for your age. For example, if you are just 18, your credit card application is more likely to be rejected as you probably have no credit rating yet. Instead, you will probably be offered a regular debit card with the option of a given overdraft.

How much a credit limit you can be granted depends to the extent of your finances and how much the bank is willing to lend you. Common to all banks and providers today, however, is that you must not be registered in the RKI. An RKI registration is clear proof that you have had trouble paying your debts back to your creditors, and no banks in Denmark will now run the chance and lend you money.

When applying for a credit card, it is important that you are realistic about your desired loan amount. For example, if you earn an income that is below average, it is not recommended that you apply for a credit limit that is higher than what you can actually afford to settle.

Advantages and disadvantages of credit cards

Before you start applying for credit cards, it is important to get into what the card actually has to offer. Even though many people take a credit card completely smoothly, it is still important to pay attention to the inconvenience you can experience at the card. Below we look at the most common pros and cons of credit cards, so you can better determine if a credit card with credit is something for you.

First, let’s look at the overall benefits of a credit card:

  • Great security when you use your credit card: Unlike many other payment cards on the market today, you can enjoy increased security when using your credit card – either within the country or on a vacation abroad. In addition, many Danes also prefer to shop peacefully on the web, as with a credit card it is always possible and relatively easy to get the money back from a bargain purchase or if you are subjected to fraud.
  • Free Travel Insurance: Today there are more and more credit card providers offering you a free travel insurance included in your next vacation if you pay more than half of the total travel expenses with your credit card. In addition, you can usually also benefit from other travel-related benefits when using your credit card; However, these may vary from issuer to issuer but are worth comparing if you plan to travel frequently.
  • Cashback: Today, several different card providers in Denmark offer a so-called cashback feature, which means that you either get a discount or money back when making purchases with your credit card. This means that you can save money in everyday life when shopping, but also when shopping for electronic goods, clothes and restaurant visits. Some credit card providers also offer a cash bar where you get discounts on specific hotels, and today the competition is so great that finding the best credit card for your lifestyle should be relatively easy.
  • Save on the gasoline: In order for you to benefit from this advantage, it is, of course, a prerequisite that you own a car. But what many people actually do not know is that more and more credit card solutions offer you a reduced price of your gasoline when you think about the tank. Here, in the long term, there can be a lot of money to save by using a credit card.

Other economic benefits of a credit card

Besides being able to take advantage of the above benefits, there is also a lot of money to save by choosing a credit card rather than a real loan. For example, many of the largest and most popular Visa and MasterCard offer you an interest-free period, which means that you can actually enjoy a completely free credit card for up to a number of days.

So, as long as you manage to pay the amount due back in time, you can make it much cheaper to trade using your credit card rather than a loan online. However, please note that some card issuers offer only the first period for free, whereas others may choose one-month mid-year when you can use the card free of charge. This, therefore, depends on the provider to the provider.

Disadvantages of credit cards

Although there is no doubt that there are many economic benefits to choosing a credit card rather than another payment card, it is still important to note that there are certain disadvantages to the card that you will especially experience if you do not use it in a responsible manner.

Some of the most common drawbacks may include:

  • The interest rate can be high: If you do not look carefully, you can very quickly end up with a credit card with an interest rate that is very high. In any case, it is, therefore, necessary to make sure that you compare different maps and offers before you decide. Also, keep in mind that if you constantly borrow money over an extended period of time, it will result in more and more interest rates. In Denmark, it is, fortunately, a legal requirement that all banks must be completely transparent in terms of the various costs involved with the use of a credit card, and it is therefore relatively easy to find the cheapest solution.
  • You may lose control: In many cases, many who take credit card loans end up losing control by lending. On a lot of points, a credit card can be regarded as a fairly common bank or bank loan, where you have access to the money whenever you want – and it is difficult for some to manage. Before applying for a credit card, it is important to understand how much it will cost you every time you use the card. By making sure that you comply with your personal limits, you will not worry about financial issues.
  • The charges can be expensive: If you understand using your credit card carefully and are responsible, there are a wealth of different cards that are actually completely free to apply within Denmark’s borders. Having said that, it is important to be aware that you may be subject to different taxes. Annual fees can be hard to avoid completely, but overdraft fees are a common tax that will cost you expensive in the long run if you constantly exceed your credit limit.

How to find the best credit cards

Finding the best credit card for your needs may prove to be a challenge. What may work for your partner or neighbor may not be the best solution for you and your finances. It depends to a certain extent on what benefits you want to utilize. For example, do you want to save travel vouchers and vouchers to hotels if you travel a lot? Or do you prioritize interest-free periods higher?

Today, the selection is large and you do not necessarily have to choose the first and best credit card your bank is willing to give you. Instead, you may consider comparing your online options.

Practical exercise to improve your personal finances

Many times we ask ourselves what happens with our economy. Why does not money reach us? What do we spend it on? And the most frequent answer is usually: Silver is an illusion. If you are one of those who has ever said this phrase, this article is for you.

We spend and spend our money in an unjustified and disorderly manner, and at the end of the day, we do not know very well what it was, staying with a sense of ignorance of our own finances. What can we do before a spending dynamic like this? This simple exercise of personal finances can be useful for you.

It is not difficult and consists of four steps to progressively improve your economy.

Step 1: Identify types of expenses

It may seem simple but it is essential to identify what kind of expenses we have in our lives. Expenses can be categorized into necessary expenses and superfluous expenses. The necessary as its name indicates are those essential to living in a way, for example, food, rent, some public services, and health; while the superfluous ones respond to satisfy desires.

Step 2: Financial Diary

As you are facing a situation caused by an economic disorder, the following will be to keep a record of each one of theĀ expenses that we have every day. It does not matter if it’s a cheap street craving, each and every one of the expenses will be written in this financial journal.

Step 3: Comparative table and possibilities

After you have recorded your expenses, you will differentiate between the necessary and the superfluous in different columns.

Done this, you will evaluate your possibilities. What does this mean? Well, you are going to consider what possibilities you have against these expenses, that is, if they are necessary, how can you start reducing their value and if they are superfluous, what can you eradicate to improve your personal finances?

Step 4: Set goals for spending and saving

The fourth and last step is divided into three points:

  • Once you have made the first steps, you must define the rules of the game. This means that you must keep in mind how much you are going to spend and how much you are going to save from the money you have. Remember that money ALWAYS behaves as you tell it to do.
  • If you know how you are going to have your resources, be mindful to fulfill that plan with conviction.
  • Out temptations! Avoid falling into bad habits like spending too much.

The most common mistakes a couple makes in finances

The happy forever lasts until the first fight. Until the first fight for money. Living with our partner is the beginning of a new stage, which means projects, goals and dreams that are shared. To achieve these goals, both individually and as a couple, a fundamental factor is finances. Each couple must decide what is most convenient for them in financial terms. There are many couples that even living together for a long period, go through real battles trying to put their finances in order.

In general, couples argue a lot for the money, but they do not reach an agreement and continue to argue, letting themselves be carried more by feelings than by reason. Nothing is resolved.

When we have a partner building a heritage is much easier, if you have the same goals and are fighting together for that. For this, it is necessary to respect some rules and commitments.

Let’s name some of the most common mistakes that are made according to the couple’s finances and how to solve them. Being able to demonstrate that two economies are stronger than one.

  1. Lying about how much money you earn or how much you owe

In terms of the financial, we must be completely transparent as we start a life of two and from zero.

Here we must be completely transparent about any financial aspect we have and also what we can contribute to the new family.

When you make a budget or set goals, all of that has to be taken into consideration. If in the middle of the road the truth comes to the limit, the confidence of the couple is thrown to the ground and it costs a lot to recover it.

  1. Fix financial life only once

After speaking, a budget was finally made, the goals were defined and ready. We did not touch the subject again.

Just as everything is changing in our lives, finances also change.

It is recommended that readjustments be made at least once a month. Thus, little by little they are achieving their objectives and can adjust the budget according to the changes.

  1. Not having common goals

If we are not heading in the same direction, our objectives do not coincide, clearly, the handling of money will also be different.

We must look for common objectives, such as a new home, a car or a trip, they can help the two have a better behavior with the money and stick to the budget.

Some strategies to achieve this are advised to always have a sufficient emergency fund to cover at least 2 months of recurring expenses. You never know of a disease, a dismissal or other mishap. That is why we must have a good financial planning to solve it without affecting us.

  1. Divide all 50 and 50

It is the easiest and logical way to deal with the couple’s finances. Each party pays half of the common current expenses.

  1. Financial infidelity

This stops when it becomes a more expensive caprice, or simply spends money without the other party knows. In the day to day, there will always be small infidelities, but the problem is when they choose the whims instead of maintaining the goal they had defined together. The ideal in these situations is that both always have clear objectives and separate an amount just to satisfy those small whims and not put at risk the agreed financial objectives.