Today, most Danes have a small plastic card in their wallet. Many years ago, credit cards overtook cash as the Danes’ preferred means of payment and there are many different credit cards to choose from. Therefore, it can also be difficult to decide which credit card to choose. We give you an overview here.
No matter whether we shop online or down at the supermarket, we mostly pay with the credit card. You’ve definitely heard of the most popular credit cards such as Mastercard, Visa, Acceptcard and American Express, just to name a few.
Credit or debit card
But a credit card is not just a credit card. First, let’s look at the main differences between a credit card and a so-called debtor card.
Viewed from a distance, the two cards are similar. They are both plastic cards that you can use to play with and that is linked to your account. The difference between the two card types is that the money is not immediately deducted from your credit card. How long you have credit before the money is drawn depends on the type of card.
With a debit card, the money is deducted immediately and there is no credit. That is, you cannot spend more money than you have on the card. If you find it difficult to manage your finances, having a debit card rather than a credit card can be an advantage so you won’t spend more money than you have.
The benefits of having a credit card
There are many benefits to having a credit card. With a credit card, you can always withdraw money and pay, whether you are in Denmark or abroad.
Therefore, you do not have to raise money if you are traveling. This is a major advantage of the credit card. Credit cards are also often linked to cash credit. Therefore, the vast majority of people with a credit card also have the opportunity to borrow a lump sum on the card.
A so-called credit card loan
However, there may also be expenses associated with having a credit card. Sometimes you pay an annual fee by having the card. If you raise money abroad, you also pay a cancellation fee. However, this is often small money compared to the flexibility a credit card provides.
We hope that with this article, we have given you an insight into the advantages and disadvantages of having the various types of credit cards available on the market. One thing is for sure, the electronic payment methods that the credit card has expressed have come to stay! How much does it cost to have a car? An interest-free loan with an interest-free loan.