Almost everyone knows the enticing slogans: “Buy now, pay later” or “Bring the goods home today – pay later”. Slogans that often cover an offer for a credit card agreement. In this article we will take a closer look at how credit cards work and what you should consider before getting a credit card.
What is that credit card?
Some of the stores featuring the aforementioned slogans would like you to create a credit card. A credit card is a debit card that is associated with an account in a particular store, mall or chain. The card allows you to purchase items on credit in that business. That way the slogan sticks – you get the goods and pay later, but what many do not think about is that this deal is actually a loan taken up in the store. Like all other loans, there are clauses associated with such a credit card and you should therefore consider an extra time if you have room in the economy to buy on credit. You should always check what agreements you make regarding installments and interest expenses on a credit card, as it can cost you dearly if you cannot pay on time. On the other hand, an interest-free credit card can be a good deal if, for example, you are missing furniture for the apartment right now and know that you can safely pay back on time.
In which stores can you get credit cards?
You can get credit cards for many different stores. To name a few of the stores in Denmark where you can get credit cards, there are Enkea, Marasin, Gem and Fix, Horald Nyborg, Nauhaus, H&M, Toys’R’Us and BR-Toys.
Can others use your credit card?
It has been passed by law that credit cards in Denmark must be specified for a specific user of the card. Thus, a certain person is bound to a particular card. This ensures that both the stores and the companies know whom to contact if the payment on the cards does not happen, but it also ensures that you can use payment methods safely and to reduce card fraud. In this way, the agreements for a credit card go both ways for both provider and consumer.
Initially, you can lend your credit card to others, just as you can lend your credit card to others, but it is a stupid idea, since it is ultimately you who is liable for the amounts raised on the credit card.
Credit Card Considerations
As mentioned earlier, you should always be sure that you can repay the amount you are shopping for back in time. The cards act as a form of loan you take out in a particular business, which not many people remember.
You should also think about creating too many credit cards. If you have too many appointments, you may lose track of your finances, which can be dangerous and can cost you a lot of money. In addition, you may end up being registered in RKI if you do not take care. In addition to these concerns, it can sometimes be worthwhile having a credit card if the agreement is advantageous to you, but you should always avoid taking out a loan if you can avoid it.