How many times have you thought to yourself that you want to buy something, but you simply don’t have the funds? You walk down the street, and you see a window in which there’s an article that you simply must have, but the paycheck from work is still due.
You do anything to get it, and you know that if you don’t do it now, you’ll lose it forever. It’s on sale, and someone else will come over and snatch it in front of your eyes. You need to buy it right away or else it will be gone.
You don’t have cash, and the debit card in your wallet is empty. What are you going to do? Simply nothing. There’s nothing you can do about it at the moment, but you can learn a lesson from this moment and do something about the next similar situation you’ll find yourself in and not let the same happen all over again.
What you need to do is get a kredittkort, or a credit card. A piece of plastic, or sometimes a metal, that is there for you whenever you need it and whenever you need money fast. It provides a credit that shouldn’t be applied for, nor needs to be approved by anyone.
What is a kredittkort?
The kredittkort is the form or payment method that allows users of it to be able to pay for goods whenever they want without the fear that they can’t afford it. If the paycheck still hasn’t arrived, but you really want something, the credit card will make it happen.
How is this possible? It is by simply agreeing to the terms that the financial institution will impose on you. It is a way for banks, and other lenders to provide money for their customers while getting an interest rate on the funds that were spent.
The average interest rate around the world is about 12%. That means, spending $300 on shoes is possible, but the lender will get 12% of this amount for providing the money when you didn’t have them. If you think about how much this is, you’ll realize that is nothing compared to having a nearly unlimited amount for these kinds of shopping outbursts.
What makes a credit card so great?
When you apply for a kredittkort test, you’re going through the system where employees in the financial company will see if you’re eligible for one. Then, they will ask some questions about your income, and make a thorough plan about what kind of card you can get?
Most people who have steady jobs are eligible for getting one. If you don’t have a job, and no one in the family can provide the money for returning eventual spending, then you will probably be rejected and won’t be issued one.
When you’re getting a credit card, you need to be sure that you have a steady income and you can always repay what you borrowed at some moment. That’s how the lender will know that you have enough to return.
They will also ask for other personal information, so even if you don’t have a way to repay them at some point, for example, you lose your job, then they’ll block your card and wait for better times for when you get another job. In short, they’ll surely get their money. They might just wait a little longer.
What are the features of credit cards?
The most important one, as we mentioned, is the ability to pay for something whenever you want and it doesn’t matter if you have the money or not. You can spend now, and return the funds later. It’s the best way to do it for moments in need.
If there’s an emergency, then you must have the funds. When disaster strike and you’re stuck in the ER, then you know that you must come out with a ton of money that the insurance might not cover. You can’t lose your life over something like this.
This is the time when the credit card is going to come in handy. Moreover, it is the time when it can literally save your life. You will be happy to know that you’re safe and in good hands. The doctors will do their job, and you’ll be able to pay, just to return the money over the next few months.
Another feature is the grace period payment which is truly amazing. You get the chance to pay for something with money that is not yours and you can use the product or the service you bought, but you’re not paying just yet. See what a grace period is on the link.
Going to a store and buying a TV set means that you need to pay for it at the counter. Not with the credit card. You hand it over, and the store withdraws the funds, but they are not your funds, only the money coming from the card issuer.
You’re going to pay the next month when you have enough balance on the card. You’ll show them the receipt, and the card issuer will withdraw the money off your balance, making everyone happy. For this, you won’t pay any interest as this is part of the service.
Safety is another great feature of the kredittkort. Out there tons of hackers are trying to get inside your account. They’ll do whatever it takes to get your money, but even if they manage to breach in and steal the money from the card, the issuer and the insurance company will get them back for you.
Who is it for?
It is for everyone that needs a fast payment system no matter where they go and have enough income every month to cover for the spending in the previous one. If you keep putting items on your card and you have no way to repay them, they will add so much that the interest rate will eat everything.
The inflation made through it will cause so many losses that it will become useless to have one. That’s why you need to be aware of both pros and cons coming from owning one. It’s great to have a payment option at all times and never be dependent, but you also must be aware of the dangers coming from it.
If you can’t control yourself and keep spending the money you don’t actually have, you’ll go broke very soon. If you do it moderately and only for the things that you truly love, then nothing will go wrong, and you’ll be happy at all times.
Conclusion
Spending money is a dream come true for everyone living in modern societies. We all want to have a ton of money and use it as we want. However, it’s not easy earning as much as we want always and spending them whenever we wish.
The credit card is there to help us in those times when we do need to use a spending spree. We need to be ready and aware of the benefits and dangers coming from owning one. Those who are completely aware will have a great time using it.