Credit cards help us to settle bills quickly when we don’t have the cash. The major issue with this financial solution is the interest rate attached to it. If you are reading this, then you are probably looking for a way to enjoy lower interest rates as well as the benefits of owning this plastic money.
In this article, we’ve selected a few credit cards that have the lowest interest rates in Norway. We recommend that you read through carefully to help you decide which one is best for you. You can visit https://www.kredittkortinfo.no/lav-rente/ to find out other factors in addition to the interest rate you need to consider when choosing a credit card. Without further ado, let’s get started.
Santander Red
Santander Consumer Bank offers three credit cards to customers. Among the three, Santander Red’s nominal interest rate is the lowest. It can be regarded as having the lowest in Norway.
The effective interest rate of this card is just 17.10%. Furthermore, you can enjoy a maximum of 50 days of interest-free credit when you pay for services and goods. This means you can enjoy all the benefits it offers without worrying about bank rates during that period.
Another advantage you get to enjoy is the benefits program provided by the bank. With this program, you can get a 15% cashback at more than 200 online shops. Furthermore, you can get a maximum of 25% in fixed discounts for certain product categories. These are just some of the benefits of this program.
The main disadvantage of this plastic money is the cash withdrawal fee. When you use it to withdraw cash, you are charged NOK 30 in addition to 1% of the amount you withdraw. Let’s say you make a withdrawal of NOK 30,000, and make the payment when due, you’ll end up paying NOK 30 plus NOK 30. This might end up being more costly than the effective bank rate you’ll accrue when you pay late.
Instapay Mastercard
This is another popular low-interest-rate credit card. Its effective interest rate is 18.13%. Although the rate is cheap, there is no interest-free period. That means interest starts accruing once you use the card.
Other areas where Instapay Mastercard has won the hearts of customers are its setup and annual fees. For both fees, you don’t have to pay a dime. Furthermore, the card is loaded with a credit of NOK 100,000.
You also get a discount of 5% monthly on specified category items. These categories include home electronics, accommodation, shoes and clothes, garden furniture, fuel, sports equipment, building materials, etc. The application response is usually swift, which means you don’t have to wait for a long time after you’ve applied.
Lendo
Lendo is not a credit card per se but a broker. You can check here to find out more about this group. They help you apply to about 3 banks at a time for a card. Once the offer comes, you can now select the card you desire.
The interesting thing about this is that it allows you to get the best offer. We mentioned Instapay already and you can get that card with its attending effective interest rate of 18.13%. The bonus of using Lendo allows you to enjoy an interest-free period of 51 days.
Ikano VISA
The Ikano Bank is responsible for issuing the Ikano Bank. The bank itself is an IKEA group subsidiary. If you get this credit card, you’ll be getting an effective interest rate of 21.92%. Furthermore, an interest-free period of 50 days allows you to make purchases without worry.
Just like the Santander Red, you’ll need to pay a fee any time you make a cash withdrawal. If you’re withdrawing from the ATM, you’ll pay NOK 35 and an additional 1% of the amount you withdraw. If you’re withdrawing at a counter, you’ll pay NOK 75 and the additional 1%.
Before you turn your attention away from this card because of the cash withdrawal fee, let’s tell you about its benefits program. Each month, you get to enjoy price reductions for certain categories. For instance, February might be an online shopping discount, and then March might be a travel discount.
With this discount, saving NOK 1,000 monthly or NOK 5,000 is not far-fetched. You just need to know how to take advantage of each month’s discount. Also, you get free insurance for travel and tank failure with the Ikano Visa.
Bank Norwegian VISA
This card is issued by Bank Norwegian which in turn is owned by the Norwegian airline. If you travel via Norwegian, this card is best for you. The effective interest rate compared to others we’ve talked about is higher (23.10%). The interest-free period is just 45 days.
The Bank Norwegian VISA is almost free of fees except for cash withdrawal fees. This fee applies only when you make withdrawals within Norway. You don’t get charged for withdrawals you make abroad.
Its bank rate isn’t the cheapest compared to the rest, however, there are still benefits available to you. One of such is 1% Cashpoints when you make purchase of any kind of product 1 point is the equivalent of 1 kroner.
Another benefit is the 10% Cashpoints you get when you travel with Norwegian. Therefore, you can convert these points into other services or free travel from Norwegian. This is a great way to save money.
If you are the type who purchases Flex tickets, you’ll receive about ten trips free. This is possible thanks to the card’s bonus scheme. You also get insurance for free travel and missed departures. Other discounts you are entitled to include rental cars excess insurance, and travel insurance all year round.
Fee-Free VISA
This is another popular credit card from Santander Consumer Bank. Although its effective interest rate of 23.4% isn’t as low as that of Santander Red, there are still benefits customers can enjoy. A good example is the 50-day interest-free credit you get when you make purchases.
The interest on cash withdrawal is a bit higher compared to what you’ll be charged for purchasing services and goods. You might not a enjoy fee-free advantage on withdrawals, especially those where the interest accrues over an extended period. Therefore, you need to pay attention to how frequently you make cash withdrawals.
But it’s not all higher interest rates with the Fee-Free VISA, there are benefits you can still take advantage of that is common to all Santander credit cards. There are cashbacks and discounts you get from certain products thanks to the benefit program. Furthermore, there is insurance that covers free travel as well as cancellation of flights.
If you’re renting a car, you can benefit from the free excess car rental insurance. As such, this card is great for online shoppers and frequent travelers. There are a lot of ways to save money once you understand how to take advantage of them with this plastic money.
Process of Getting a Credit Card
Getting a credit card is easy provided you meet the minimum requirement. All you need to do is apply for a credit card from the issuing bank. For instance, if you want the Santander Red we talked about in this article, reach out to the Santander Consumer Bank and apply for it.
If you are not Norwegian, you can still get a credit card. However, you must have lived in Norway for a minimum of one year. Also, you must be fully employed and have all your household bills paid.
Usually, issuers need to see a year’s tax return. Because of this, you might have to wait for two years to get accepted. During this period, you must maintain a steady finance and credit score as a dip especially in credit score might affect your chances of getting accepted.
Conclusion
Getting a credit card in Norway is one thing, and getting one with a low-interest rate is another thing. To make things easy for you, we’ve revealed six of the cheapest Norwegian credit cards you can find. We recommend that you carry out further research on the cards that might have piqued your interest by contacting the appropriate issuer before applying for it.
