Read this about Credit cards and card purchases in general. An application for a credit card is sent to the card company. People who are creditworthy are granted a certain credit, for example NOK 20,000. They can then use the card to trade goods and services up to NOK 20,000. the credit granted.
When we use a credit card, we get a loan that of course has to be repaid
Often, a fixed installment per month is calculated regardless of the actual loan amount. The card company usually sends us a payment every month. In addition to the installment, this requirement includes interest on the actual loan balance and various types of fees we must know concepts such as effective interest rates, establishment fees etc., and then be able to compare them for different offers.
A true flora of credit cards and other card systems have gradually entered the market. A credit card entitles you to shop for goods and services in most stores, gas stations, hotels and other places. And not least: We need to be able to consider how large fixed expenses our finances can withstand when we take out loans.
Examples of credit cards are “Multi Card and” Purchase Card “
Larger department stores and retail chains often have their own credit cards. It can be mentioned IKEA account (furniture) and Ving account (travel). As a general rule, credit cards are a very expensive form of loan. The nominal interest rate is around approx. 2% per month. In addition, when we calculate fees, card fees etc., the effective annual interest rate can quickly rise to over 30%.
From time to time, most people have problems with income not being sufficient when paying bills. In some cases, there is something fundamentally wrong with the economy, and a solution requires more radical measures, such as switching to less expensive car owner housing.