Saturday, October 16 , 2021

Choosing The Best Kredittkort (Credit Card) in Norway

Whether you are planning a vacation or shopping at your favorite shop. Credit cards are one way to fulfill your financial dreams without running out of cash or carrying bulk money around.

Norway is one of the countries that thrive with a cashless economy. You can make countless transactions without having to deal with cash, be it attraction centers, malls, airports, bars, restaurants, etc. This therefore, makes the need for card transactions very crucial.

This article will compare different credit cards accepted in Norway and the conditions for getting one. Let’s get started! 

Norwegian Credit Cards

In Norway, one of the safest and easiest ways to transact business is using credit cards. Norwegians accept different credit cards and they include; MasterCard, American Express, Visa, China Pay, etc.  These cards are issued by 11 Government-authorized institutions. They could also come in silver, gold, and platinum types, depending on your choice. 

Choosing det beste kredittkort (meaning the best credit card) depends on the need you want to solve, the issuer’s policies, and the transaction speed. That said, before making a final decision on which option to go for, you should consider the following criteria:

  1. Max Credit: This is the maximum amount the issuing institution allows for your credit limit. And this could range from 10-15% of your total salary/income for the year. For instance, if you earn 500,000kr in a year, you can be offered a credit limit of 50,000 or more. 
  2. Card Type: For cards like Visa, it allows a max limit of 100,000kr. While MasterCards allow a max limit of 150,000kr. You might also want to check for more information on card types and the issuing institutions before making your choice.
  3. Annual Fee Payable: These are costs that your issuing institution charges you to keep the account active all year round. These payments could vary from bank to bank. However, many banks don’t charge annual fees for credit cards.
  4. Surcharges: You should also note the rate of tariffs you will pay if you fail to fund your account or pay up your debts within the stipulated time.  
  5. Cashback policy: Some issuing banks offer incentives and bonuses, up to 4%, on transactions done with certain credit cards. In contrast, others offer a lower cashback rate. 

Next, we will explore the different conditions to consider before applying for one…

What To Consider Before Applying For A Norwegian Credit Card

Certain conditions would determine what type of card that could be issued to you. It could be your age, occupation, spending capacity, citizenship, and creditworthiness. Owning a credit card can be likened to taking a bank loan. So, you have to tick all the boxes before you can be found worthy of having one.

They include:

  • Age bracket
  • Duration spent in Norway
  • Borrowing limits
  • Credit ratings

Age Bracket

To be eligible, you have to attain the minimum statutory age of 18 years. This will convince the issuing institutions that you are of age to work and earn a living and can fund your account as at when due. Although some organizations do not pay serious attention to age limits.

Users below the statutory age can be added to their parent’s or guardian’s accounts as an authorized user; with their parent’s consent. 

Duration spent In Norway.

For Norwegians, applying for a card is easy if the required conditions are fully met. But that’s not the case for visitors or new immigrants. You must have stayed at least a full year in Norway to be eligible. 

You should also have an active bank account with any Norwegian and or bank and have been transacting with it for the said length of time. The issuing banks will also require that you provide at least one year’s tax payments. However, it might take two years before your application is accepted. 

When you must have met the following criteria, the next thing to consider is your credit ratings.

Credit Ratings

Before you start the application, you must have gotten all the necessary Information about your issuing bank’s policy. Including the minimum accepted score. 

This involves checking your financial history and performance- for strict adherence to laid-down conduct. The report must also come from a recognized Norwegian bank. This means there’s no room for cheating your way out. 

Ordinarily, your creditworthiness is the determining factor for your application to be granted. So, the only way to get through that is by achieving a “Good or Excellent” credit score. That said, it is essential to know your score beforehand to avoid back and forth or getting rejected. 

Your score convinces the institution that you can repay your debts. It also determines the amount you are allowed to borrow at a time. So, to be on the safe side, check your score. 

Next, we will address the concerns about using foreign credit cards in Norway. Let’s get to it.

Are Foreign Credit Cards accepted in Norway?

For some reason, certain local stores, restaurants, and bars may frown at foreign cards. However, Norwegians accept foreign cards as far as they were issued by any of the globally accepted networks. 

You can use it to shop and pay for any services of your choice. Nevertheless, it is advised that you ask questions first to avoid disappointment. You can also use it to withdraw cash from ATMs around you. 

Safeguarding Your Card

The fun thing about owning a credit card is that it grants you easy access to your spending dreams without restraints. You could find yourself swiping at everything you like in shops, or putting your card details on every eCommerce store online. 

But you could be doing yourself more harm than good if you are not security conscious. Your card details are as crucial as the money you have in your account. Any mistake could make you prone to theft or cyber fraud. 

With that said, you have to protect your card and details with the following tips:

   1. Minimize risk by using one account 

Using multiple cards for online transactions can further expose your details to hackers. You might want to use one card for your transactions to minimize risk for people with several accounts.

   2. Use Virtual Account Numbers

Virtual account numbers provide you with a one-time account number for every transaction you make online. You can request this feature from your issuing bank to help you secure your information.

    3. Create string and Unique Passwords

To ensure that your passwords are strong enough, you might want to use combinations of upper and lower cases, numbers, and special characters. Refrain from using passwords that are easy to guess —for instance, your name or date of birth. 

   4. Avoid unsecured websites

Always check for the ‘secure’ icon on the address bar of any website you open. Make sure that there is a lock symbol, indicating that the website is secure. The quickest way is to avoid clicking on websites with ‘http’ instead of ‘https.’ This shows that the information you put on the site is end-to-end encrypted.

This however, is not 100% safe because criminals can also own a secure website, but it can help you avoid opportunistic scams. 

   5. Transact ‘ONLY’ on Known and Trusted Sites

Before you hurriedly click on ‘Checkout’ on that online store, you might want to be sure that the site is well known and trusted. Also, check their payment validation network to be sure that your information cannot be sabotaged. 

In addition, avoid transacting over public WI-FI or a free network that you don’t know their source. Remember, free Wi-Fi is not always free.

   6. Security Software is very important.

Although security software can be pricey, you might want to use a free version. This can provide moderate security for your desktop and mobile devices. And also notify you when a security measure has been breached. 

You can as well enable two-factor authentication for every transaction. That way, your bank would have to send you a one-time authorization pin for every transaction.

   7. Keep your Apps Updated

You might be familiar with bug fixes and security updates that come with regular updates on mobile devices and desktops. These updates can help you stay abreast with the current security trends and software provided for your operating system. That said, you can be sure that your details are safe and secure – to a large extent.

Wrapping It Up

Owning a credit card is one of the best ways to transact business in Norway. But not all cards may be good for you. You might have to consult with your financial institution or Loan Company to determine the best card for you.

You should also make sure that you meet the requirements for owning a credit card. Finally, the safety of your money and card information depends on your security consciousness. 

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