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 When you pay for something with the card, the money is immediately withdrawn or booked in your account.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.