What Do You Need To Know About A Kredittkort?
It might surprise you to find out that you can strike gold when you’re paying with a credit card. Of course, you can’t get an actual bullion or a numismatic coin, but the deals you get are going to be worth their weight in gold. The plastic card you use on a daily basis helps you shop conveniently.
But it can also make you more money. For the past few weeks, the prices of gas have increased substantially. If you have a good deal with the bank, the price of gas can be reduced, and you can also get some free plane tickets.
When you’re thinking of a love affair, the first things that come to mind are chocolate, flowers, and romantic getaways. Well, it might surprise you to find out that most Americans have an affair with their credit cards too. The mass adoption of rebates and rewards is growing every day.
All the way back in 2008, more than 85 percent of the population were incentivized to get a bonus by spending. For that reason, you need to know about the fundamentals before you get tricked by the rewards programs.
What’s so good about cash back?
Based on the data, and average American can get anywhere from 700 to 1000 extra each year by using the correct credit cards. There’s no harm in getting extra money that you can invest on an ongoing basis. You just need to be wise and spend some time doing your homework and comparing plans.
If you haven’t yet had your fill of the money pie, it’s time to set your priorities straight. You can think of a reward card as a freebie. Nowadays, consumers may take advantage of the greatest option available. For that reason, you should never use a card that doesn’t give you benefits.
Why would anyone want to do business with a company that isn’t committed to excellence that you can clearly see from its competitors? You can go to http://www.kredittkortinfo.no/ to find out more. It only takes a small amount of work on your side to have more money in the future.
A double-edged sword
Since there is a carrot dangling in front of you disguised as more money, there has to be some sort of catch, right? That’s correct. The rewards will come to you if you are financially responsible. If you are not, then this option would be worse than a nightmare. These cards have much higher interest rates compared to their non-reward alternatives. If you have a lot of debt, the first thing you would have to do is pay it off.
How did it all start?
This program is not something new. It’s been around for more than 35 years. All the way back in 1986, there were commercials during the Super Bowl that advertised a card that would reward you with one percent back for every transaction you make.
This was something that was unheard of at the time. The options that give you free flying points with every transaction emerged four years later. Since most people don’t want to talk about how much they make, this was considered a taboo subject.
No one wants to share sensitive financial information. Nonetheless, these options started becoming more popular. One of the reasons why popularity increased was because competing banks wanted to provide better service so they could get more customers.
It’s not easy to stand out in a crowd. One of the ways to tempt new consumers and spenders is to give a better incentive. As a result, their current campaigns are fantastic beyond measure. Over the years, the benefits have become increasingly generous.
Competitors are creating new plans and striving to outdo one another with more appealing cards. At the moment, there are options where you can get anywhere from 3 to 5 percent of the total money you spend. Plus, the money you get back is tax-free.
All you need to do is to use a piece of plastic. The rivalry between institutions is always beneficial for the customer. As a result, there are other rewards, such as certificates, that provide you with a plethora of options to maximize your earnings. In the future, the financial markets will collide with cryptocurrencies, and you could get rewards in Bitcoin. Imagine owning a single Bitcoin just because you used a specific card. That would be amazing.
What should you avoid?
There is a negative aspect to pretty much everything. If you eat too much, your stomach can hurt. If you drink a few gallons of water all at once, you can die. Everything should be done in moderation. The same principle applies to rewards programs.
The most dangerous trap here is overspending. That’s something that you should avoid at all costs. Current analytics show that people actually spend more with reward cards compared to regular ones. If you sometimes go over the limit, make sure to repay the full amount the following month.
First of all, you don’t want to be going into debt because it can become highly addictive to spend more money than you earn. Secondly, the interest rates are catastrophic. This is the strategy of the bank. They make money only if you pay interest.
That’s why they’re going to send you constant reminders when you’re close to your limit to remind you that you have the option to go overboard. You’re still going to get rewards if you cross the limit, but the interest is going to be much higher.
For that reason, it’s important to have a monthly budget that you stick to. Take a piece of paper and write down your expenses. Before you buy anything out of your price range, try to save for a couple of months instead of going into debt.